Can You Resell Diamond Jewellery? What to Expect

Many people ask whether diamond jewellery is an investment. The honest answer is that it is something you buy to wear and keep. You can sell or exchange it, but you should expect to receive less than you paid. Knowing why helps you plan.

Why resale is lower than retail

The price you pay at a shop includes more than the materials:

• the gold or platinum,
• the stones,
• the making charges,
• tax, and
• the seller's costs and margin.

When you sell, a buyer pays for the materials and the stones at market rates, and a trade buyer needs room to resell at a profit. Making charges and tax are not usually returned.

What is typically valued

• The gold or platinum: valued by weight and purity at the day's rate. A hallmark helps. See BIS hallmark marks explained.
• The diamonds: valued by their qualities. Certified solitaires with a report from a recognised laboratory are easiest to value. Small stones in a cluster are valued by total weight and quality range.
• The design: a recognised, well-made design may help a little, but resale value rarely rests on design alone.

Exchange versus sale

An exchange puts the value of your old piece towards a new one at a jeweller. It can be more favourable than an outright sale because the jeweller keeps the transaction in the shop. How well you do depends on the terms. See old gold exchange: how it works.

What affects the figure

1. Metal rate on the day.
2. The quality and certification of the stones.
3. The condition of the piece: damage lowers its value.
4. Documents: an invoice and certificate make valuation easier and more credible.
5. Where you sell: the shop where you bought, another jeweller, a trade buyer, or privately.

How to prepare

• Collect the invoice, certificate and hallmark details. See what to keep with your jewellery.
• Have the piece cleaned and checked, as in how to clean diamond jewellery at home.
• Get two or three quotes, and ask how each is calculated.
• Ask what deductions apply and why.

Natural versus laboratory-grown

Resale for laboratory-grown stones is generally weaker than for natural ones, since supply is not limited and prices have fallen. See lab-grown diamond jewellery: questions to ask.

Sentimental value

Jewellery is also something that carries memory. Many families keep pieces and pass them down. See passing down jewellery: caring for an heirloom.

Common questions

Is a certificate needed to sell a solitaire? It is not strictly required, but a report from a recognised laboratory makes valuation easier and gives the buyer confidence.

Will the jeweller who sold it buy it back? Some do, under stated terms. Ask for the buy-back or exchange policy in writing at the time of purchase.

Is it better to wait for a higher metal rate before selling? The gold part moves with the rate, but the stones are valued separately. Nobody can reliably time the market, so sell when you have a reason to.

Setting expectations

Think of diamond jewellery as something you enjoy for years, with some of its value recoverable later, not as a way to make a profit. If you would like to understand how a particular piece might be valued, book an appointment and bring the invoice. You can also see how our own pieces are itemised on any diamond pendant page.