1. Get a proper valuation
It might sound alarming, but how do you know you even have a diamond? It is important, before you make any decisions, to be sure of what you have. Ideally, if you can find a qualified valuer who doesn't buy or sell diamonds, you can garner an unbiased report of the gem's characteristics and condition, along with any other attributes, which might affect its value such as inclusions, scratches or laser marks.
At Borro we offer a valuation service that is both objective and accurate. All diamonds are checked for appropriate certification from industry-recognised organisations such as the Gemmological Institute of America, the European Gemological Laboratory, the International Gemological Institute and the Gemological Association. We can even arrange for the item to be delivered directly to us.
As a general rule of thumb, if you estimate your diamonds to be under £3,000 then we would recommend perusing the online pawnbroker directory on this site to find a shop closest to you. For items worth more than £3,000, you would be well suited to use the valuation service we provide. Once you have a greater understanding of your diamonds, you will find it far easier to set a price.
2. Set a realistic price
Chances are, you are going to be selling to experts. They will know what your diamond is worth within moments, so going in with too high a price will put them off instantly. Instead, set a realistic price based on your findings from your valuation. At your valuation, ask how much the stone might be worth in specific markets and financial situations; remember the price of any commodity will vary according to market conditions and diamonds are no exception. A decent valuer will be up to date on current market trends and able to help you understand the potential resale value of your diamond. You can view the credentials of Borro's expert valuation team from the valuation service section of this site.
You can find out a bit more, such as what a buyer will look for in a diamond (e.g. its colour, clarity, cut and carat weight) on our Value of Diamonds page. You will be able to use the information listed there to give a pretty confident estimate of what your diamond is worth, even before you bring it to be valued.
3. Where can i sell a diamond?
You will either be selling to the trade or the public. You should of course aim for the highest realistic price, but be wary of time constraints. If you want a good price you may have to be patient. If you haven't the time, we would strongly recommend other options such as acquiring a secured loan against the diamond. Borro can offer this service, have your asset valued and loan money into your account within 24 hours. Our Sale Advance Loans have the speed and simplicity of a secured loan, but with the benefit of Borro selling the diamonds on your behalf.
The next best option is to research a jeweller and/or diamond dealer. The downside to selling to an industry insider is that you're unlikely to get the top price - at the end of the day they are a business and have to make a profit, so the amount offered will be significantly lower than retail value. However, you'll be dealing with an established company to give you peace of mind. Most will have an online presence so check for positive feedback. Is the jeweller a member of the relevant National Association? You can even find out if they have won any awards and certainly see what price they are advertising for items that closely match yours.
Remember the cycle: diamond dealers will sell to trade. Trade will sell to you. Each time there will be a mark up, so think wisely about which point you are entering the chain. Of course there is room for give or take and considered negotiation, but you should always have a realistic price in mind.
4. Consider the options
If you are selling because you have to, make sure you have considered all the options. Secured loans are calculated against the value of items rather than your credit rating so anyone with your diamond would always get the same loan price, regardless of their financial background.
Be aware that the price you want for the diamond may be influenced by sentimental reasons, factors that unfortunately will be of little interest to the buyer. If you need to sell, but also need to access cash immediately, a Sale Advance Loan from Borro can fulfil both needs. You will also benefit from our wealth of experience in valuing and trading valuable jewellery.
There are a number of other options to selling, the most relevant here being secured loans and unsecured loans. Many people shrink away from the idea of taking out a loan as they associate them with extortionate rates, maxed out credit cards and added complication to their personal finances.
The truth is, you are right to be skeptical. Getting an unsecured loan (money which is guaranteed purely on your credit rating) can be difficult, particularly if you have been struggling to keep up with recent payments and your credit score is suffering as a consequence. Even with decent financial credentials, you may struggle to loan anything under 300% APR. However, secured loans offer much more favourable rates and terms, as the percentage of interest is calculated with no bearing on the person seeking the loan, rather purely against the value of the asset in question.
Although we can offer advice on selling and borrowing, we find a lot of our customers asking where to buy diamonds. Even if you are looking to sell, this can be a good thing to investigate to see it from the buyer's point-of-view.
When buying diamonds, you will get the best deal the nearer to the start of the production chain as possible - i.e. the diamond cutter. These ‘diamond dealers' can afford to sell to trade at wholesale prices - the large quantities they sell allowing for more effective economies-of-scale and therefore as near as possible matching the true value of the diamond.
Therefore, by definition as a private buyer, you will never be able to access wholesale prices unless you are buying large quantities of diamonds. With the exception of building up a strong personal relationship with a diamond cutter (highly unlikely), you will either have to buy from a retailer, or from the public.
Buying from a retailer is normally the safest option, purely because buying direct from a member of the public, through sites such as eBay, doesn't quite give you the history and reputation of a registered shop. When buying from the public, you may also not be able to have the same warrantee services that a retailer might offer. Another drawback would be using auction sites, where you can get a fantastic deal just as frequently as bids can boil over, and exceed the recommended value.