Selling back a diamond bought during downturn?

[PierreBear]

Hi PSers,

I have a 1.5 ct engagement ring that might not be worn as much with a future upgrade so I questioned whether I should sell it back. I don't have an upgrade policy with the vendor I purchased it from unfortunately, but they do purchase diamonds back at what they think it is worth. I do plan on making them a visit as I need to get a ring re-shaped/polished so I'm going to ask them for a price and would appreciate some seller guidance/advice before I go.

Per the attached picture (pricescope homepage), since the stone was purchased in 2008, I feel like it would be fair to get close to what we paid for. However, when I asked the general question on the forum before and read other threads, it always seems that the answer is to keep the stone and convert it to another piece to avoid the loss. Anyone can shed a light on whether diamond prices bought during a "downturn" per the chart can still make it a fair deal to sell back?

Thanks in advance!

 

[PintoBean]

The first step is to find comparables and see what the average going rate is for the same specs nowadays. How much higher are the current stones going for compared to what you paid?

 

[azstonie]

You.Paid.Retail.

They.Pay.Wholesale.

 

[monarch64]

Deb (AGBF) posted a great article from 1988 or so on a similar thread recently. I can't remember the name of the thread nor the headline of the article or I'd dig it up. It explained exactly how the diamond business works, from what it's based on (how values are determined) to the fact that one of the DeBeers bigwigs once said "diamonds are intrinsically worthless."

See what a stone with the same specs would go for retail, and ask for 50% of that. You're not even going to come close to getting what you paid for it.

 

[PintoBean]

Deb (AGBF) posted a great article from 1988 or so on a similar thread recently. I can't remember the name of the thread nor the headline of the article or I'd dig it up. It explained exactly how the diamond business works, from what it's based on (how values are determined) to the fact that one of the DeBeers bigwigs once said "diamonds are intrinsically worthless."

See what a stone with the same specs would go for retail, and ask for 50% of that. You're not even going to come close to getting what you paid for it.

F@#& DeBeers - I only get my diamonds from De40s

 

[MissStepcut]

Deb (AGBF) posted a great article from 1988 or so on a similar thread recently. I can't remember the name of the thread nor the headline of the article or I'd dig it up. It explained exactly how the diamond business works, from what it's based on (how values are determined) to the fact that one of the DeBeers bigwigs once said "diamonds are intrinsically worthless."

See what a stone with the same specs would go for retail, and ask for 50% of that. You're not even going to come close to getting what you paid for it.

I"m honestly surprised to see that article posted here since it wasn't right then, and is even less right now.

I remember one of the "proofs" offered in it was that a thief couldn't sell a bunch of diamonds quickly. Well, sure. Diamonds are more like houses when it comes to selling them. If you have to unload 20 of them today and the buyer must pay in cash, you might be disappointed with your offers. I bought my GIA certed e-ring stone on the secondary market for about 80% of retail, and I'm sure that's what I'd get if I listed it today (but it might take a few months to get an offer).

 

[monarch64]

Deb (AGBF) posted a great article from 1988 or so on a similar thread recently. I can't remember the name of the thread nor the headline of the article or I'd dig it up. It explained exactly how the diamond business works, from what it's based on (how values are determined) to the fact that one of the DeBeers bigwigs once said "diamonds are intrinsically worthless."

See what a stone with the same specs would go for retail, and ask for 50% of that. You're not even going to come close to getting what you paid for it.

I"m honestly surprised to see that article posted here since it wasn't right then, and is even less right now.

I remember one of the "proofs" offered in it was that a thief couldn't sell a bunch of diamonds quickly. Well, sure. Diamonds are more like houses when it comes to selling them. If you have to unload 20 of them today and the buyer must pay in cash, you might be disappointed with your offers. I bought my GIA certed e-ring stone on the secondary market for about 80% of retail, and I'm sure that's what I'd get if I listed it today (but it might take a few months to get an offer).

Hmm. Interesting. If I ever manage to dig it up again I'll examine it more closely.

 

[monarch64]

Deb (AGBF) posted a great article from 1988 or so on a similar thread recently. I can't remember the name of the thread nor the headline of the article or I'd dig it up. It explained exactly how the diamond business works, from what it's based on (how values are determined) to the fact that one of the DeBeers bigwigs once said "diamonds are intrinsically worthless."

See what a stone with the same specs would go for retail, and ask for 50% of that. You're not even going to come close to getting what you paid for it.

F@#& DeBeers - I only get my diamonds from De40s

Ha!

I just watched "How to Lose a Guy in 10 Days" and the plot revolves around Matthew McCaunaghey trying to land the "DeLauer" account. Hint: DeLauer is supposed to be DeBeers.

 

[AdaBeta27]

If you're going to sell it, sell it to whomever pays you the most. Get a fresh lab report on it. If if was AGS 000 on the original report, I'd send it to AGS again. All of the PS vendors get new paper on "used" diamonds that they've bought or taken in on trade. Once you have the current specs on it, you can put it on consignment somewhere, or sell it outright yourself, or put it out for offers from the PS vendors. What you paid for it doesn't really factor into a sale, unless there's a paper trail with the store you're trying to sell it back to. If you don't need money fast, you're in a better position to get a higher price for it. There were Pricescope people who bought diamonds in the early PS days, then there was a big jump in price in 2008 and a huge one in 2011, so they managed to sell their diamonds at a profit due to the price increases. The the buyers were glad to get those deals, because the price was still lower than current PS vendor retail. I'm not saying that happened on a large scale, but it did happen. I certainly didn't lose any money on a couple of diamonds I sold.