Does Diamond Have Resale Value? Find Out Here

Diamonds! From engagements to special milestones, these gemstones are enough to symbolise love, achievements, and many other emotions. Shopping for one can seem more emotional than logical. Right? However,  there are times when you would look at the other aspect and question: does diamond have resale value?

This question should be even more important to ask in times of the rise of lab-grown diamonds. Plus, they’re generally considered less of an investment option when compared with gold.

Let us return to the questions and discuss the resale value of diamonds.

Yes, diamonds hold a resale value, but you must expect a lesser return on their original value. Usually, it can go from 20-60% of the original cost. Natural diamonds can come with a higher value, while lab-grown diamonds have a lower one. Factors such as official certification, cut, colour, carat, clarity, size, or official statement can make a difference here.

In this post, let us dive deeper and walk you through the resale value of diamonds. ​

Does Diamond Have Resale Value?

The answer is YES! As of now, you know about this, too. However, the diamond’s return value will not be the same as it was when you purchased it. Many jewellers can offer you 20-30% of the price you initially paid. In the section ahead, let us dive deeper.

Natural Diamonds

These are rare and precious gemstones existing for billions of years. They are rare and sourced naturally. The nature of diamonds boosts their value and increases their demand. They can give you 20-50% of their original value as a resale cost. However, the return can go upto 60%. Please note that this is not the fixed price, and the costs can depend on different factors, which we will cover in the section ahead.

Lab Grown Diamonds

A major reason why people shop for lab-grown diamonds is that they cost less than the natural ones. Their cost can be up to 30-60% less than the natural ones. They have a lower resale cost, going up to 20-40% of the original cost you paid.

Why Diamonds Lose Value After Purchase?

As of now, you are familiar with the answer to the commonly asked question- does diamond have resale value? Even though it has, you still need to know why they lose their value after they are purchased. Come, learn about the lower return on diamond resale in the section ahead:

Factors That Can Affect the Resale Value of a Diamond  

Have a look here:

​The 4 Cs

The 4Cs of diamonds are cut, colour, carat, and clarity. These are the globally established and accepted standards. They also impact the resale value of diamond jewellery. Near colourless diamonds with eye-clean clarity grades can bring better resale value. The same can be said about better cut diamonds and popular sizes.

​Documentation and Certification

The certification and documentation of diamonds are important. They verify the authenticity, 4Cs, and quality of the diamonds, and that’s how these can impact the gemstone’s resale value. A good grading report, like IGI, GIA, or HRD, can command a higher resale value.

Design and Condition

When it comes to the diamond’s exchange value, its design matters. Let us simplify this. If you are reselling a diamond with a classic and timeless design, chances are you will get a better value out of it. Similarly, the condition can make a difference. If the stone has scratches, chips, or similar damage, its value will fall somewhat.​

Origin

The origin of the diamond can impact its resale value. This happens in relation to the stone’s authenticity, rarity, and ethical status. For example, a lab-grown diamond ring will recover less value. However, ones made out of real diamonds will give you a better return on cost. Similarly, diamonds for a certain location can be highly priced and thus have high resale value.

Brand

A brand can impact the gemstone’s resale value, though to a minimal extent. A diamond jewellery from a high-end brand may not have a higher resale value. However, you can expect a reliable documentation process, which can certainly add to its value. The quality of the diamond is actually what makes a major diamond.

Where Can You Sell a Diamond?

How great it is that you now have an answer to your question: does diamond have resale value? In India, you can go to specific diamond buyers to ensure that. Similarly, there are other places where you can sell the diamond. These can participate in the retail exchange programs by branded jewellers, such as those run by Tanishq. You can also explore online marketplaces to sell diamonds or visit a local jeweller.  

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In the coming section, let us walk you through the common tips for making the best out of your diamond jewellery.

How Can You Get the Best Diamond Resale Value in India?

In the previous sections, we have discussed more than the resale value of a diamond. Over here, let us move towards the tips and tricks of getting the best out of those:

Make Certifications a Priority

Certifications matter highly in determining a diamond’s value, and we have reminded you plenty of times about that. Simply because without IGI or GIA certifications, you may not receive a good amount for your diamond.

Exchange, Don’t Sell

You can retain a higher value by exchanging the diamond rather than selling it. This way, you can recoup most of your stone compared to what you could have gotten after selling it for cash, right away.

Preserve Your Original Document

Yes, the GIA certification is important, and we have said it many times. However, you must also keep a record of purchase invoices to show ownership. Similarly, brand-specific certifications, boxes, and tags can account for the premium costing.

Prefer Popular Designs

We know that you want to ensure a good resale value of your diamond. There, you should go with popular and timeless designs. As said earlier, these are easier to sell and can bring maximum value.

Keep Up the Conditions

We have mentioned that the condition of the diamond can affect its cost. Let us do that again. So that you can be reminded to keep it away from scratches or loose prongs. You can recoup a better value this way.

Check Multiple Offers

This is the general rule of selling that you should check multiple offers instead of settling with just one. Check the pricing with multiple jewellers and online platforms to get the best deal for your diamond’s resale.

Are Diamonds a Good Investment?

Diamonds are not the financial pieces that grow with time and give you better value to recoup. The common reasons behind it are high retail markups, low liquidity, and the absence of standardised costing. The investment response takes a downward turn for lab-grown diamonds, as natural ones can still have some potential.

When discussing the complexities of diamonds as an investment, the market complexity can also make a difference. The 4Cs can set a standardised framework and can evaluate value, quality, and rarity. High-grade diamonds can ensure a better return on the initial cost.

Conclusion: Does Diamond Have Resale Value?

This post was the answer to your query: does diamond have resale value? Before we call it a wrap, let us remind you once again, yes, diamonds do have a return possibility. However, you should expect anything equal to or more than the invested amount.

The thing is that diamonds retain 20-50% of the original cost. With natural diamonds, the percentage can go upto 60%, but lab-grown diamonds keep up to 10-30% of the original cost. Many factors decide the retention cost of the value. They are the 4Cs- Cut, Colour, Carat, and Clarity. You must also consider certifications like IGI or GIA, as those impact the value. Similarly, popular shapes can bring a better return compared to uniquely designed ones.

Frequently Asked Questions

​Are diamonds worth reselling?

Generally, diamonds are not considered good for resale purposes. That’s because they are sold at a price 20-50% lesser than their original cost. Certified, high-quality diamonds can indeed have a higher return value, but you cannot call them a good financial investment. ​

Is a diamond a good investment?

Emotionally maybe. However, financially, diamonds are not a good investment piece, as their resale value diminishes.

Does a diamond have 100% resale value?

No, it doesn’t. Many diamonds are sold at 25-50% lesser than their purchase cost.

What is the 4 diamond rule?

4Cs are the universal rules that determine the diamond’s value. The 4Cs are Cut, Colour, Clarity, and Carat.

Is 1 carat diamond 1 gram?

No. A carat diamond is not 1 gram. It is 200 grams.

What is a poor man’s diamond?

The term poor man’s diamond is used for the affordable options over the natural ones. They appear similar and are highly durable.

How much is a 1-carat diamond resale?

A natural diamond can go for 20-50% of its retail cost. A certified and high-quality stone can bring upto 60% of its original value during resale.  

Why can’t diamonds be resold?

They can be. You can resell diamonds, but you can’t expect a good return on your investment. Diamonds go for a lower amount than their original cost.

Why do diamonds often have lower resale value than gold?

The absence of standardised and transparent costing and higher retail markups lowers the resale value of the diamond. Gold, on the other hand, is traded globally and is liquid.  

What determines the market value of diamonds in India?

The 4Cs can determine the market value of diamonds in India. These are Colour, Cut, Clarity, and Carat.

How is the selling price of a diamond calculated?

The 4Cs are used to calculate the selling price of a diamond. These stand for Colour, Cut, Clarity, and Carat.

How much have diamond prices increased in the last 10 years?

Over the past decade, diamond prices have seen notable volatility. While its price reached a notable height in 2022, it later witnessed a notable drop after lab-grown diamond came to the market.

How have diamond prices changed in India over the past decade?

Diamond prices have shown significant volatility in the past decade. Earlier, it experienced a heavy rise in price, followed by a notable drop.

Does platinum jewellery have resale value?

Yes, platinum jewellery has resale value. However, it behaves differently from the gold. Common factors that determine its cost are weight, purity, and the market demand.

Does 18K gold jewellery retain resale value?

Yes, you can expect a good resale value from 18K gold jewellery due to its composition of upto 75% gold.

Between diamond and gold, which holds more value over time?

It’s gold. Simply because it has a higher resale value, better reliability, and standardised pricing. This can be smarter in the long run.

What is the resale or exchange value of Tanishq diamond jewellery?

For gold, it’s 100% resale value at Tanishq. For diamonds, you can expect a higher percentage of exchange value than in other places.

What should you consider when buying diamond jewellery?

Purchase of diamond jewellery can require you to focus on the 4Cs (Cut, Colour, Carat, and Clarity). You must also ask for a certification from a reliable lab, such as IGI or GIA.