When Diamonds Are Not Forever - Selling Diamonds in Dallas Texas
"Diamonds are forever."
The words fade-in as dramatic music plays over the black and white backdrop of a man and woman engaged in a loving embrace.
Everyone has seen the commercial. It is ubiquitous around Valentine's Day and during the Spring months of "new love." The goal of the commercial is to further enhance the romantic notion that a diamond gift is the ultimate expression of love; and, that the value of the purchase will never diminish.
Goal achieved.
Walk through the corridors of the Galleria or North Park malls in Dallas and pay close attention to the left hands of the women passing by. The Metroplex is second to none when it comes ladies who appreciate large diamonds. Dallas socialites and soccer moms alike seem to take a sense of pride in impinging passing retinas with the "bling" emanating off their ring fingers.
But what happens when the commitment of the gift's recipient to keep the diamond is not forever? National divorce rates are hovering around 50%, with the Dallas Metroplex setting the pace. This means that about half of the engagements signified by a diamond ring have dissolved. Also consider that in today's slowing U.S. economy more and more people are being forced to sell luxury assets like diamonds to pay the increased prices for necessities like gas, mortgages, and food.
Luckily for those individuals looking to sell a diamond, the market is so tightly controlled that price fluctuation is minimal. However, selling a diamond can still be a tricky process. There are typically donate my car gaps between a diamond's original retail price, its appraised value, its sentimental value to the owner, and the amount it can reasonably be expected to sell for.
Most diamonds are purchased retail at a 100-200% markup from the wholesale price. This is simply the nature of the industry. The perceived value of diamonds is much higher than their actual intrinsic value, thanks in large part to the aggressive marketing campaign and market control of DeBeers over the past century. Combine that with the lengthy chain of supply that diamonds must follow to get from the ground to a person's jewelry box, and these retail markups are understandable.
What is not understandable for most people is why they cannot sell their diamond for the same or more than they paid for it.
If you are looking to sell a diamond, you may have a small chance at recouping all or most of the original retail price by selling it on your own. Perhaps a family member or friend has grown to like the diamond, and will be willing to pay a "sentiment premium." Or maybe you can get extremely lucky and put out and ad, find someone who trusts you as a seller, who has little sophistication in the diamond market, and wants exactly the diamond you are selling. The chance of this occurring, though, is infinitesimally slim.
Some people think, why not sell it back to the retailer I bought it from? But think that one through. Retailers purchase their diamonds at wholesale prices and then mark them up. They are not going to pay their own markup to own a diamond they could buy for 100-200% less.
More than likely you will need to find a wholesale buyer for your diamond. This is why having realistic expectations for the resale of your diamond is so important. However, having realistic expectations does not mean that you should seek anything less than the best resale value possible.
According to gemologist Barry Adler of Dallas, Texas, the key in today's U.S. diamond market is to find a wholesaler who truly understands the market and who has connections to overseas buyers. As with anything else, the price a jeweler like Diamond and Watch Traders will pay for a diamond is dependent on how much it can be turned around and resold for.
"One can get a much better price reselling a diamond in Europe or Asia, because of the relative strength of the Euro and other currencies against the dollar," he explains. "In turn, that means a prospective client has the ability to pay you more for your diamond."
Adler explains that most places a person tries to sell a diamond are going to offer a price below "dump value." Dump value is related to the Rapaport value of the diamond, which is a published price sheet that instructs jewelry stores what they should pay for diamonds. Typically, dump value is 60-80% of the Rapaport value of a diamond. Jewelers will offer unsophisticated individual sellers less than 60% of the Rapaport value and then turn around and sell it for dump value to make a quick buck.
"This is the nature of the U.S. market," says Adler. "And plenty of opportunities for arbitrage abound. A lot of jewelers prey on individual diamond sellers who don't understand how to get the most value for their diamond."
Ultimately, getting the most value should be the goal of any individual looking to sell a diamond. While the chances of recouping all or even most of the original purchase price are small, sophisticated sellers can still get a good return by making informed choices about where they sell their diamond.
For more information about Dallas wholesale diamond buying and selling, visit Diamond and Watch Traders near the Galleria Mall.
Contact Barry Adler from Diamond and Watch Traders in Dallas for more information about the diamond market and sell diamond Dallas.
Learn more about diamonds and DeBeers' influence on today's diamond market worldwide.
posted by biibj @ 5:30 AM
0 comments
