| "Diamonds are forever." | | | | like the diamond, and will be willing to pay a |
| The words fade-in as dramatic music plays over | | | | "sentiment premium." Or maybe you can get |
| the black and white backdrop of a man and | | | | extremely lucky and put out and ad, find |
| woman engaged in a loving embrace. | | | | someone who trusts you as a seller, who has little |
| Everyone has seen the commercial. It is ubiquitous | | | | sophistication in the diamond market, and wants |
| around Valentine's Day and during the Spring | | | | exactly the diamond you are selling. The chance |
| months of "new love." The goal of the | | | | of this occurring, though, is infinitesimally slim. |
| commercial is to further enhance the romantic | | | | Some people think, why not sell it back to the |
| notion that a diamond gift is the ultimate | | | | retailer I bought it from? But think that one |
| expression of love; and, that the value of the | | | | through. Retailers purchase their diamonds at |
| purchase will never diminish. | | | | wholesale prices and then mark them up. They |
| Goal achieved. | | | | are not going to pay their own markup to own a |
| Walk through the corridors of the Galleria or | | | | diamond they could buy for 100-200% less. |
| North Park malls in Dallas and pay close attention | | | | More than likely you will need to find a wholesale |
| to the left hands of the women passing by. The | | | | buyer for your diamond. This is why having |
| Metroplex is second to none when it comes ladies | | | | realistic expectations for the resale of your |
| who appreciate large diamonds. Dallas socialites | | | | diamond is so important. However, having realistic |
| and soccer moms alike seem to take a sense of | | | | expectations does not mean that you should seek |
| pride in impinging passing retinas with the "bling" | | | | anything less than the best resale value possible. |
| emanating off their ring fingers. | | | | According to gemologist Barry Adler of Dallas, |
| But what happens when the commitment of the | | | | Texas, the key in today's U.S. diamond market is |
| gift's recipient to keep the diamond is not | | | | to find a wholesaler who truly understands the |
| forever? National divorce rates are hovering | | | | market and who has connections to overseas |
| around 50%, with the Dallas Metroplex setting the | | | | buyers. As with anything else, the price a jeweler |
| pace. This means that about half of the | | | | like Diamond and Watch Traders will pay for a |
| engagements signified by a diamond ring have | | | | diamond is dependent on how much it can be |
| dissolved. Also consider that in today's slowing U.S. | | | | turned around and resold for. |
| economy more and more people are being forced | | | | "One can get a much better price reselling a |
| to sell luxury assets like diamonds to pay the | | | | diamond in Europe or Asia, because of the relative |
| increased prices for necessities like gas, | | | | strength of the Euro and other currencies against |
| mortgages, and food. | | | | the dollar," he explains. "In turn, that means a |
| Luckily for those individuals looking to sell a | | | | prospective client has the ability to pay you more |
| diamond, the market is so tightly controlled that | | | | for your diamond." |
| price fluctuation is minimal. However, selling a | | | | Adler explains that most places a person tries to |
| diamond can still be a tricky process. There are | | | | sell a diamond are going to offer a price below |
| typically prodigious gaps between a diamond's | | | | "dump value." Dump value is related to the |
| original retail price, its appraised value, its | | | | Rapaport value of the diamond, which is a |
| sentimental value to the owner, and the amount it | | | | published price sheet that instructs jewelry stores |
| can reasonably be expected to sell for. | | | | what they should pay for diamonds. Typically, |
| Most diamonds are purchased retail at a | | | | dump value is 60-80% of the Rapaport value of a |
| 100-200% markup from the wholesale price. This | | | | diamond. Jewelers will offer unsophisticated |
| is simply the nature of the industry. The | | | | individual sellers less than 60% of the Rapaport |
| perceived value of diamonds is much higher than | | | | value and then turn around and sell it for dump |
| their actual intrinsic value, thanks in large part to | | | | value to make a quick buck. |
| the aggressive marketing campaign and market | | | | "This is the nature of the U.S. market," says |
| control of DeBeers over the past century. | | | | Adler. "And plenty of opportunities for arbitrage |
| Combine that with the lengthy chain of supply | | | | abound. A lot of jewelers prey on individual |
| that diamonds must follow to get from the | | | | diamond sellers who don't understand how to get |
| ground to a person's jewelry box, and these retail | | | | the most value for their diamond." |
| markups are understandable. | | | | Ultimately, getting the most value should be the |
| What is not understandable for most people is | | | | goal of any individual looking to sell a diamond. |
| why they cannot sell their diamond for the same | | | | While the chances of recouping all or even most |
| or more than they paid for it. | | | | of the original purchase price are small, |
| If you are looking to sell a diamond, you may | | | | sophisticated sellers can still get a good return by |
| have a small chance at recouping all or most of | | | | making informed choices about where they sell |
| the original retail price by selling it on your own. | | | | their diamond. |
| Perhaps a family member or friend has grown to | | | | |