SELLING DIAMONDS AND JEWELRY: CASH OR CONSIGNMENT
Selling your unwanted jewelry or diamonds is a good investment but you need to know which options are the best way to sell your diamonds and jewelry. If you are in a hurry to get the value of your diamond or jewelry, selling it for cash is the safest and fastest choice. But make sure that you are dealing with a licensed and trustworthy diamond dealer who can give you an honest offer for your diamond or jewelry. You also need to understand that selling a secondhand diamond or jewelry is way different in pricing as when you purchased it. The Appraisal Value is the value of your diamond or jewelry for insurance purposes in case of loss or damage and never a gauge or reference for selling price.
If you have the luxury of time, however, consignment is a popular choice but requires full understanding what this arrangement entails.
How Consignment Works?
After you choose a jewelry store that you entrust your diamond or jewelry, the dealer will showcase your piece as their own inventory for an agreed price. Usually the dealer will take 10% to 30% cut once the sales goes through. Hence, you must be clear on the following items with the dealer to avoid any unpleasant surprises:
- What is your minimum price
- What is the form of payment they provide?
- What commission percentage are involved?
- Are there other fees the dealer charges?
- If the dealer does not sell your diamond or jewelry, do they still charge?
- What are the documentations needed?
Advantages & Disadvantages of Selling Diamonds or Jewelry on Consignment
Though selling your diamond or jewelry may take some time but you will probably make more money to sell them on consignment. The dealer will obtain a pre-established percentage of the sale, thus make sure to consider this portion into the amount that you will walk away with.
Consignment also gives you a bigger targeted market looking for diamond or jewelry as it will provide more exposure to their customers. You may get the closest possible retail price but of course depending on the commission set by the dealer.
Since the drawback in selling on consignment is the course of time, waiting for the right buyer with a good offer and with the same requirements as your diamond or jewelry is the big challenge. It may take weeks, months or years so your flexibility is a must!
Lastly, the issue of trust should be highly considered because you are entrusting to someone else you valuable items that over a period of time may get damaged, stolen or dealer’s company may shut down. Finding a reputable and financially stable company to consign your diamonds, engagement rings or any other value pieces of jewelry is crucial as you are technically partnering with them. It is not wise to choose a dealer that has the lowest commission or fees. Get a dealer that is licensed, established, trustworthy, with integrity and professional.