How to Sell a Diamond

Not all diamonds are forever. There may come a time in your life when you want to sell a diamond or two, for one reason or another. It may be an engagement ring from a previous marriage, or a pair of diamond studs from an ex-boyfriend. It may be a family heirloom, or just a diamond you don’t want to wear anymore. Rather than let it gather dust in your safe deposit box, you’d like to convert it to cold cash. Here’s what you need to do. And remember: Patience is a virtue! If you rush into a sale without doing your homework, you’ll get burned. Follow these steps:

Step 1: Have the diamond appraised.

You need to know what you have, and a qualified appraiser can tell you. To find one, contact the Appraisers Association of America, 386 Park Avenue South, Suite 2000, New York, NY 10016, (212) 889-5404. Tell them where you live, and ask for a list of appraisers in your area. They won’t tell you over the phone, but they’ll send you a few recommendations — it’ll take about a week. If you’d like their complete membership directory, they’ll mail it to you for $14.95. If you can’t wait, look in the Yellow Pages under Appraisers.

Check the appraiser’s affiliations. The top three groups are: Appraisers Association of America, American Society of Appraisers, International Society of Appraisers. Membership in any of these is a good indication the appraiser is okay.

Step 2: Ask the appraiser for the Rapaport value.

Rapaport is a wholesale price sheet published in New York that tells jewelry stores all over the country the prices they should pay for diamonds. The Rapaport prices are wholesale. The price the appraiser gives you will be the highest price you can get for your diamond. For example, if your diamond is a 1-carat, round, VS1-G, Class 2 cut with no flourescence, the Rapaport value would be $7,200. That’s the most you’ll get for it. That same diamond would sell for more in a jewelry store, but you’re not a jewelry store! Anyone who buys a diamond from an individual, who gives no guarantees or warranties, is simply looking for a good deal.

Step 3: Find a Buyer

There are a number of possibilities here, but I’m going to firmly guide you away from most of them. In my mind, the two best choices are: 1) Family or friend, and 2) a jeweler.