That lovely cushion cut diamond ring your great aunt left to you has been sitting in it’s velvet case, untouched, for years. Your engagement ring has lasted several years longer than your actual marriage. Those gigantic, pendulum-like earrings your adoring husband got you have yet to see the light of day. Whatever your reason, you have elected to sell your diamonds. Converting your gemstones into cash is quite a viable and potentially headache free way to significantly supplement your income.
However, there are numerous pitfalls you can inadvertently find yourself trapped in while attempting to make the sale. Many outlets that may appear like good options either are loaded with people who have no interest in purchasing diamonds or, even worse, individuals looking to take advantage of you. Diamond Lighthouse is here to ensure that you don’t fall into any of these traps.
1 – Craigslist. Craigslist’s reputation as the shadiest place to conduct business of any sort is justly deserved. More scams and illegal activities run rampant on the site than any other in recorded history. The most dangerous aspect of Craigslist is not that you could just lose your diamond outright, but highly skilled scammers, operating under false identities, have ways of accessing your bank account and draining it. If you haven’t heard of the Nigerian Prince scheme by now, god help you.
2 – Any web site that doesn’t provide you with a physical address of some sort. Even if the purchasing agency is somewhat legit, if anything goes awry, the last thing you want to be dealing with is not receiving payment…and then having no where to go where an actual person can be held accountable (so you can not only yell at them over the phone but also in person – or just have your Uncle Lou threaten them).
3 – Any third party site that charges you, whether or not a sale is made. It may possibly be “safe and secure,” with promises of a high return, but the potential to be taken advantage of is also quite high. If the site is requiring from you a flat fee, what incentive do they have to actually make a sale in your name?
4 – Pawn Shop. This could easily be the worst place to sell your diamonds (strictly financially speaking) or anything for that matter. The dealers here will offer you the absolute lowest prices for your stones, as they are accustomed to encountering desperate people who are simply looking for an incredibly quick turn around – i.e., on the spot cash. Pawn Shop Brokers also have no knowledge whatsoever about diamonds in particular, and what they are actually worth. Also, you are losing value on your items as having virtual anonymity in the sale is an unsaid factor (unless you stole the diamond yourself, in which case this is the perfect place for you to sell).
5 – A Jeweler without a solid reputation and visible accreditation certificates. Any trustworthy jeweler will have received such documentation. Other such jewelers are highly suspect and have been known to perform immoral and illegal activities. A despicable practice of these profiteers is to take your diamond in the back room to inspect it with a “special instrument”, only to switch it for one of lower quality or even a fake. Almost as nefarious is when they tell you your diamond is virtually worthless and offer to “take it off your hands” at an exceptionally low price…oh, so kind of them. Even in a best case scenario with jewelers, they still do not have diamond specific expertise and are using a lot of guesswork when determining your diamond’s “value.”
6 – An Accredited Jeweler. Even the good guys here are going to lowball you as much as they can. While they may give you an on site appraisal, that looks thoroughly legitimate, complete with careful inspection through the classic loupe and various other industry specific tools, it clearly is in their best interest to give you the lowest possible rate. This is how they turn the largest profit for themselves. The odds are that they will not be able to sell your piece in their store, and they will have to unload it to a dealer, thereby losing a significant amount themselves. If the jeweler takes the diamond on consignment, it can sit in their display case for years and never get sold – and if it eventually does? The jeweler is typically taking a 50% commission. So, you’ve already lost a considerable amount off the retail price and now are only getting half of the sale price.
7 – eBay can hold a treasure trove of gemstone wonders, and conversely, a vast mountain of diamond detritus. Your lovely stone can get lost in a sea of cheap and low quality diamonds, making it difficult for potential buyers to weed out the good from the bad (which may have dazzling pictures accompanying them, further mystifying the shopper). On the other hand, if you are in possession of a smaller stone, and your photos are not that spectacular, you may be grossly disappointed when you see the highest bid being “$0.99.” In reality, only a minuscule percentage of diamonds on the site even sell at all. Plus, the likelihood that the people who will pay the most for your diamond, actual diamond dealers, will be looking here is highly unlikely. Lastly, there are many documentations citing very poor customer service which means it may be difficult or simply not possible to resolve any issues.
8 – Large Consignment Sales. In the “consignment family,” these (what are basically “pop-up”) sales can be hectic and maddening. You pay a small fee to join the sale, and it can occur in any number of places that are able to house a lot of people (warehouse spaces, malls, hotels). Often crowded with hundreds of rambunctious shoppers trying to find the best deals (i.e. – Velvet Elvis paintings for $5), the potential to get lost in the crowd is quite high. If the area that the sale is taking place in is not that affluent, then the likelihood of selling your diamond decreases exponentially, much like your childhood dream of being in the circus.
9 – Garage/tag sale. You never know if a millionaire will walk by and your diamond will just speak to them – but you probably have a greater chance of being struck by magic lightning.
10 – In the Alley Behind a Zales. This may actually be a great place to unload your diamond on some poor guy who just couldn’t afford the retail prices INSIDE the store…however, here, you run a high risk of being arrested and/or mugged and stabbed.
All this being said, the safest and most efficient place to sell your diamonds is online at a site that only takes a small percentage of the final sale of your stones. At Diamond Lighthouse, we have intimate access to dealers and industry professionals who do not deal with the general public, and who will get you the absolute largest sum. Find out how it works here. We do not buy your diamond from you; we sell it for you. As we only take a small commission, we can ensure you that we will utilize all of our resources to get you the most money possible for your diamonds, in a totally worry free and speedy environment.