Why Buying a Diamond at a Jewelry Store Makes Bad Financial Sense
Buying diamond jewelry is a great way to show someone you love them, but it can also be costly. The diamond industry operates with an amazingly high mark-up and the diamond ring value is not what they claim. In this blog post, I will discuss how buying a diamond new from jewelry stores that offer to finance and ultimately mark up the diamond 4x the value makes bad financial sense because of appraisal valuation and resale.
The “new” diamond industry operates with an amazingly high mark-up and the diamond value is not what they claim. It is common practice for jewelers who sell diamonds to overvalue them by 60% or more, which keeps you paying far too much every time you buy a diamond in Boise, Nampa, and across the United States. On average a diamond’s price can be marked up as much as 400%. The markup on loose diamonds ranges anywhere from 100 percent all the way to 400 percent depending on where you purchase it new. This means if your ring wholesale costs is $2,500 dollars, then it can be sold for as much as $10,000.
A great rule of thumb is to avoid financing. If it is financed, then you are probably paying way too much for the ring. If you’d like to buy a diamond and save some money only paying 20% over wholesale, find a local diamond broker, or pawn shop that specializes in Diamond buying and selling. You will end up either getting a much larger clear diamond or saving money.
Look for the 4c, carat weight, cut, clarity, and color, of your diamond. Be sure if spending over a couple of thousand dollars to get a second opinion or a GIA report. Appraisals can help, but it all depends on the company that conducted the appraisal. An extra tip for those really doing their research. AVOID INTERNATIONAL APPRAISALS. I have seen them list prices upward of 10-20x the value of the jewelry and diamond.
Contact us today with the webchat button, or contact form to learn more and find the diamond you need. If you need a diamond buyer in Boise, Nampa, Star, Meridian, Kuna, Caldwell, Eagle Idaho to sell or loan with, we will pay upwards of 90% of the wholesale value on the same day at our pawn shop. No deal is too large for us.
Keep in mind diamond resale value is based on the diamond prices which vary based on the current market price. Melle diamonds do not add a lot of value, but if your engagement ring looks nice and is in style, the craftmanship can add value. Take for example a Tiffany diamond engagement ring. Tiffany brings a premium which we will pay extra for. Diamond buyers do not always pay extra for brand names, but here at Idaho Pawn & Gold, we specialize in buying when you are looking to sell your diamond.
Selling diamonds or fine jewelry is not an easy task. Find the right store with great reviews in your area to get the best price from a jewelry shop, pawn shop, or other gold and jewelry buyers.
Not looking to sell your diamond but needing a short-term collateral loan? Reach out to us for options to leverage your diamond engagement ring for a significant difference in price for a short-term pawn loan for more money.