sell

Selling A Diamond? Know What to Expect

hi I'm Josh Fishman president and owner

of a fisherman's son diamonds in New

York welcome back to our ultimate

diamond education series in an earlier

video titled how to sell your diamond I

have successfully reached many many

people as a result I've been approached

by individuals who want to sell a

diamond either one they purchased

themselves or one which they inherited

and they are asking me to advise them

how much they can realize for the

diamond that they want to sell

generally speaking folks have been

disappointed by the answer they thought

that they were going to get much more

sometimes more than they paid for the

diamond their expectations are very high

after explaining to them the actual

facts on how I came to the price they

were enlightened and they understood the

factors that led me to the price that

I'm offering them I want to share with

you those factors the inside knowledge

of how to go about expecting what to get

for your diamond I cannot give you fixed

percentages off of what you may be

asking because diamonds selling does not

work that way there are though many

factors which affect the price at which

you can sell your diamond and that is

what I want to share with you as usual

much of the analysis ends up with the

answer of it depends it depends on many

factors so let's get started with the

factors that affect the price at which

you may get for the diamond you want to

sell it depends on who you bought the

diamond from and who you are selling it

to most people buy their diamonds from

retail outlets whether online or

brick-and-mortar

and that means they pay a retail price

which is a lot higher than a dealer

price or a wholesaler selling to that

store and when they go and try to sell

that diamond back to the retailer that

they bought it from they will find two

things one the retailer will not offer

them cash back for the diamond because

they don't want to own the inventory

they probably got that diamond on

consignment second they may offer to

take the diamond on consignment from you

and offer you a pretty good price if and

when they sell the diamond but if and

when is very vague and can never happen

or it can take a long time to happen the

only way you can get cash for your

diamond is by selling it to someone who

buys diamonds for stock and that is the

dealer wholesale market primarily in New

York City we a Fishman and son and

people like us buy diamonds for stock

and we can afford to buy diamonds for

our inventory but the price at which you

are going to get is going to be

significantly less than what you paid

for at holes at retail because we must

turn around and sell that diamond back

into the retail market or back into our

private consumer market and it's even

especially worse as the diamond isn't a

good quality diamond let me explain we

recently had a customer contact us to

sell a diamond that they bought at a

retail well-known chain store out on the

west coast for $3,800 for the diamond

it was a seventy three point round

diamond GI a certificated H color si -

clarity very poorly made he told me that

he contacted several sources to sell the

diamond and based on the certificate he

was offered 800 dollars for the diamond

yes $800 for a diamond he paid $3,800

for in looking at the certificate I

figured that the diamond could be worth

maybe a little bit more maybe $900 but

this was a very poor quality diamond and

my guess is that the retailer tripled

the price on what it cost him on

consignment to get the diamond so for

that let's turn to the second factor

that selling your diamond depends on and

that is the quality of the diamond it

depends on the quality and desirability

of your diamond the quality and

desirability of your diamond are very

important factors in determining what

you may realize from the sale of your

diamond and I say both quality and

desirability and let me distinguish

quality is simply the grade of the

diamond desirability is how pretty is

that diamond regardless of the grade so

if you have a diamond that's a very high

quality diamond a devious one but the

diamond isn't a pretty diamond because

the shape isn't right or the brilliance

isn't right

those factors will affect the about you

can get so if it's both a desirable

diamond and a quality diamond you can

expect to receive more but if it's a

quality diamond and not desirable

because it may have a bad inclusion for

the SI one or si two that you have

you're going to get less and if you have

both a low quality diamond and an

undesirable diamond you have big

problems in terms of realizing a good

price or reasonable price for that

diamond it depends on how popular your

diamond is as I discussed in my last

video concerning why round diamonds are

priced higher than fancy shapes the

popularity put another way the demand

for the shape of your diamond will go a

long way in determining how easily you

can sell it and how much you can get for

it all other things being equal round

diamonds being the most popular diamond

that too

of all diamonds sold around diamonds

will be easier to sell and at a better

price than fancy shapes for example if

you have a marquise diamond that you

want to sell that you bought 30 years

ago or that you inherited from 30 years

ago which was popular at the time and

you are going to sell it into today's

market you're going to be very

disappointed because Marquesas are not

very popular today and anyone who wants

to buy a marquise will have a hard time

selling it and they will offer you a

much lower price than you think the

diamond is worth and then even they may

think the diamond is intrinsically worth

simply because they will have to hold on

to the diamond a long time before they

sell but if you have a popular diamond

or a popular shape you will do better

and of course nobody can predict what

that will be in terms of which fancy

shape may be popular at the time but

round diamonds will always be popular

and are a better source of return for

you when you go and sell your diamond it

depends on the age of your diamond does

it have to be recut many people come to

me with diamonds to sell primarily round

diamonds which are quite old and by old

I mean it could be fifteen or twenty

years old which is not really old but

the cutting parameters of what is

desirable in the market today has

changed dramatically over the last ten

to twenty years and accordingly the

diamond that you may have bought twenty

or thirty years ago which was a pretty

diamond and desirable in the marketplace

at that time is no longer that and it

has to be recut in order to meet today's

demanding standards of by consumers for

brilliant

well cut pretty diamonds so when you

come in with a diamond that may weigh

like I had recently 603 carats and it's

a great diamond 2 G color vs one but it

has a 65% table and a 58% debt and is

not a pretty diamond in terms of its bro

Millions that diamond has to be recut it

cannot be looked at as a six carat G vs

1 quality diamond rather it has to be

looked at as what will that diamond sell

for as a poorly cut diamond or a diamond

that has to be recut in order to

maximize its value so if you recut a

stone like that you may end up with a

five and a half carat diamond or a five

and a quarter you don't know and there

are risks in recutting a diamond will

the diamond break will you get an

imperfection into the stone at the last

minute that wasn't there before all of

these things have to be taken into

account by the buyer in evaluating what

that diamond is worth buying for today

but at a minimum it will not be valued

as a six carat diamond because you

cannot improve it within those few

little points from 603 - 601 you're

gonna have to recut that stone the same

thing applies to any diamond a carat 80

that has to be recut a carat diamond

that has to be recut which will weigh

under a carat these are risks that

sellers have to take into account when

they are looking to maximize their value

from themselves and it is a risk that

the buyer of the diamond will absolutely

consider when he goes to purchase that

diamond it depends on the economic

climate at the time you sell your

diamond the economic climate in general

and in the diamond industry in

particular at the time you both buy and

sell your diamond goes a long way in

determining how much you both have to

pay for your diamond and what you can

sell it for in the dealer market at the

time you go to sell it nothing else has

to be explained the business is good

you'll get more if businesses weak it

will be a greater reluctance and fewer

potential buyers will be willing to step

up to the plate and buy your diamond

general risks for the buyer to consider

finally there are some general

risks which the buyer of the diamond has

to consider and which don't really

affect the seller at the time he is

selling the diamond for example what is

the economic climate going to be in the

future

well diamonds become more popular or

less popular will they become more

expensive or less expensive what is the

general directional trend for diamond

prices if I buy it today at a certain

price our price is going down or price

is going up what is the risk if I have

to recut the diamond could it break on

the wheel and I have a total loss or has

happened to me once I cut a diamond at a

carat 80 it broke and I ended up with a

half the carat diamond and lost big

money on the stone

it wasn't the sellers problem it was my

problem these and other factors go a

long way in determining what you as the

seller can get for your diamond and what

I as the buyer I'm willing to pay for

your diamond I can't predict what that

will be but I wanted to elucidate you on

the factors that come into play in the

interaction in buying and selling your

diamond until next time this is Josh

Fishman saying so long