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Where To Sell A Diamond?


chris311
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There are 3 basic paths to selling diamonds:

 

1) You can retail it yourself directly to a consumer.

2) You can sell it to a dealer and let them do the work and put up with the risks of selling it to the final consumer.

3) You can consign it through a dealer, auction or broker, let them do the work, and split the money when it's done.

4) I suppose we can add a 4th in the form of donating it to a museum or charity and taking the tax deduction but I wouldn’t really call that a ‘sale’.

 

If you have a network of direct consumer contacts that might be interested in buying it, by all means call them up and make a deal if you can. If you have a lot, consider becoming a jeweler yourself. There's plenty of suppliers who would be eager to supply you goods if you've got the channel to move them to consumers at good prices. Most people, even most jewelers, don’t. If you’re trying to sell to a stranger and you don't happen to own a jewelry store, the normal way to find them is ebay, craigslist, newspaper advertising and the like. If you don’t like those craigslist or ebay there are certainly competitors like Amazon, Google and Yahoo as well as diamond specific things like the section here or diamondbistro.com but I’m guessing this doesn’t really solve your issue. They mostly take a commission which puts you in the category of working with a dealer and those that don't, don't offer much in terms of putting a deal together. Like craigslist, mostly customers are shopping there becasue they're looking for cheap deals, the exact opposite of what you're hoping for. To be sure these all come with their headaches and I understand why you would want to avoid them but you’re ruling out 95% of your retail opportunities by dismissing them. What’s left? Spam? Direct mail? Flyers in the parking lot at the grocery? Waving a sign on the side of the road? I suppose you could try.

 

Dealers want to be paid for their work. Damn them. It would be so convenient if they would do it for free. After you get over that, you need to decide if you’re willing to pay someone for the job or if you would prefer to do it yourself. Make no mistake, it IS work. What you describe is not a particularly easy item to sell but if you’ve got proper documentation, you add no logistical problems (like your location), and there are no other zingers, it shouldn’t be all that hard to find someone to help. If you expect them to lay out their money up front, expect them to take a higher cut of the final selling price. Commissions are going to range from about 15% to about 40% depending on who you work with and how the deal ends up playing out. As with the above, there are risks and headaches associated with consignment and direct sale produces less money so I understand why you might want to avoid them but blanketly dismissing dealers and brokers as something you don’t want to consider strikes me as a serious mistake. If they do their job right they get higher prices by enough to cover their commissions and then some. If they don't do their job right, find another partner.

 

Just out of curiosity, why are you opposed to working with a dealer? For that matter, since you say you're looking to advertise online through a website, why not ebay and craigslist?

 

You describe this as an E/IF/3.04. What's your source of that information and what are you providing to prospective buyers to 'prove' it?

Edited by denverappraiser
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There are 3 basic paths to selling diamonds:

 

1) You can retail it yourself directly to a consumer.

2) You can sell it to a dealer and let them do the work and put up with the risks of selling it to the final consumer.

3) You can consign it through a dealer, auction or broker, let them do the work, and split the money when it's done.

4) I suppose we can add a 4th in the form of donating it to a museum or charity and taking the tax deduction but I wouldn’t really call that a ‘sale’.

 

If you have a network of direct consumer contacts that might be interested in buying it, by all means call them up and make a deal if you can. If you have a lot, consider becoming a jeweler yourself. There's plenty of suppliers who would be eager to supply you goods if you've got the channel to move them to consumers at good prices. Most people, even most jewelers, don’t. If you’re trying to sell to a stranger and you don't happen to own a jewelry store, the normal way to find them is ebay, craigslist, newspaper advertising and the like. If you don’t like those craigslist or ebay there are certainly competitors like Amazon, Google and Yahoo as well as diamond specific things like the section here or diamondbistro.com but I’m guessing this doesn’t really solve your issue. They mostly take a commission which puts you in the category of working with a dealer and those that don't, don't offer much in terms of putting a deal together. Like craigslist, mostly customers are shopping there becasue they're looking for cheap deals, the exact opposite of what you're hoping for. To be sure these all come with their headaches and I understand why you would want to avoid them but you’re ruling out 95% of your retail opportunities by dismissing them. What’s left? Spam? Direct mail? Flyers in the parking lot at the grocery? Waving a sign on the side of the road? I suppose you could try.

 

Dealers want to be paid for their work. Damn them. It would be so convenient if they would do it for free. After you get over that, you need to decide if you’re willing to pay someone for the job or if you would prefer to do it yourself. Make no mistake, it IS work. What you describe is not a particularly easy item to sell but if you’ve got proper documentation, you add no logistical problems (like your location), and there are no other zingers, it shouldn’t be all that hard to find someone to help. If you expect them to lay out their money up front, expect them to take a higher cut of the final selling price. Commissions are going to range from about 15% to about 40% depending on who you work with and how the deal ends up playing out. As with the above, there are risks and headaches associated with consignment and direct sale produces less money so I understand why you might want to avoid them but blanketly dismissing dealers and brokers as something you don’t want to consider strikes me as a serious mistake. If they do their job right they get higher prices by enough to cover their commissions and then some. If they don't do their job right, find another partner.

 

Just out of curiosity, why are you opposed to working with a dealer? For that matter, since you say you're looking to advertise online through a website, why not ebay and craigslist?

 

You describe this as an E/IF/3.04. What's your source of that information and what are you providing to prospective buyers to 'prove' it?

 

No I know jewelers/retailers deserve to get paid for what they do, I just want to get the most I can for the diamond and do not mind waiting few weeks. Might give ebay a try have never sold anything on there but might give it a go, Thanks

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Realistically speaking, you may be looking at a wait of several months - unless you price very aggressively which however goes against your wanting to get the most money out of your sale.

 

Use the diamond finder to get comparable "competitive retail" prices for similar diamonds; remember that these are low but still "dealer to consumer" prices, and you'll need to go significantly below these to be an attractive proposition for a retail buyer. Also, (apparently) tiny details matter a lot; for example a GIA graded E/IF diamond is NOT the same thing as an EGL-graded one.

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The objective on a sale like this, and any sale actually, is to net the most money the fastest with the lowest risk, the least work and a minimum of costs. These things all balance together and different people will put different priorities on the various elements. Not all paths are the same and if you maximize one it’s usually at the expense of the others. You seem to be assuming that the price you will realize as a first time seller on ebay will be the same as the price a professional dealer will get in whatever market they work (including ebay dealers) and you seem to be ignoring the other parts completely. This is simply false. Doing this deal for maximum return is going to take months, maybe more. It’s going to come with some significant fees in terms of grading, advertising, insurance, etc., and it’s going to take some significant effort to make it happen.

There are several important questions:

What is it? (3.04 E IF. Do you know the rest)?

How do you know this?

How are going to find a buyer?

How are you going to convince THEM what it is?

How are you going to do the logistics (shipping, payment, returns, etc.)?

Why should they buy YOURS instead of your competitors?

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