How to Sell a Diamond
By Bryan Boyne (g.g.) , Monday, February 13, 2012
Whiteflash is quite well known for our lifetime trade-up benefit and buyback guarantees. We buy back the diamonds we have sold under those benefit policies on a regular basis. But we do not buy diamonds or jewelry from the public at large.
So the question is, where to sell jewelry that you did not buy from us, or is not covered under one of our benefits?
There are a number of avenues available for individuals selling gold, diamonds, fine jewelry, gemstones, coins and other precious metals. And there are pros and cons associated with each.
Selling to the Public
Above all, security should be your primary concern when you are considering how and where to sell gold or diamonds. Advertising diamonds and fine jewelry to the public through classified ads or online websites is probably the least secure strategy. If you take this route, you may find an individual willing to pay close to a retail price, but you may also attract the wrong people. It is strongly advised that you never invite strangers to come to your home to see your valuables. Always arrange meetings at a public place with security such as your bank. If a transaction is made, make sure the funds are clear before turning over the valuables. Even cashiers’ checks can be counterfeit and it may be days or weeks before they are returned by the bank. If the transaction is not in the form of cash, seek the advice of your banker for the most secure process of making the transaction.
Selling to the Trade
Selling diamonds to a jeweler or wholesaler is another option. In this case you will inevitably get less than a retail price. A member of the trade will buy it advantageously, paying less than it would cost them to purchase through normal trade channels (in other words- less than wholesale). If you elect to go this route, the actual transaction should be conducted with the same caution as with a stranger. The majority of jewelers are honorable, but there are always exceptions. Do your homework and get background info on any business you are considering dealing with.
One of the common traps with this method is the jeweler making a price contingent upon a sale. In such a case, it is common for the transaction to drag out a long time with much back and forth, time and energy spent (the hassle factor can be huge), and/or the jeweler ultimately comes back and says I can’t get X but I have an offer for X-20% do you want the money?”. At this point you may just take hit to be done with it.
Consignment is another method to sell diamond or fine jewelry item. This is an arrangement whereby you allow the jeweler or wholesaler to put the item in his inventory for a period of time to try to sell and pay you a predetermined amount. If the jeweler has a good following for your particular type of item, there is a chance that this method will work out. However, you may still end up in the trap described in the paragraph above (Selling to the Trade).
If you take the consignment approach insist on a written document specifying the details about the item, a fixed price and a set time frame within which the money will be paid or item returned to you. The trap here is that the jeweler is not highly motivated to selling jewelry that he has no investment in it. If he has similar merchandise in his inventory he will attempt to sell his own before yours. Many times the predictions of a quick sale are not met and you end up months down the road with no results and find yourself back to square one.
Another option, and many times the best option for most people, is to sell to a reputable company specializing in making cash purchases from the public. The merchandise is carefully evaluated and a firm offer is made. If the offer is accepted, the buyer pays cash, wire transfer or certified check. If the offer is rejected the goods are returned promptly. This is a liquidation price but requires little time or aggravation on the part of the seller. In many cases sellers end up with the same net amount (or more!) as using one of the other methods, but without the headaches and hassles.
Whiteflash recommends one such company - Bonded Buyers – to customers approaching us to sell their valuables. While most jewelry companies carry insurance protecting their own interests, Bonded Buyers carries protection for the customer in the form of a “bond”. They provide convenient methods for transporting your valuables to them for evaluation and have an excellent reputation for honesty, fairness and customer care. Customer packages are opened at a special receiving station equipped with video for added protection. Bonded Buyers is well known in the jewelry industry and can be easily checked out through the Better Business Bureau, Jewelers Board of Trade, online reviews and other sources.
For these reasons we recommend Bonded Buyers to our customers asking where to sell a diamond that they own. At the very least, having them evaluate your valuables will give you solid knowledge of the real market for your items. If you live in Houston or your travels bring you here, you can deal with them in person. And be sure to tell them you discovered them at Whiteflash!
For more specific questions ask our experts