Is it a good time to sell diamonds: analysis of the current market

Whether you recently inherited some jewellery from a loved one or have some pieces you no longer wear, it’s wise to keep an eye on the value of diamonds and the current state of the market.

Just like gold, the diamond market is influenced by various factors, including global economic conditions, consumer trends, geopolitical stability, and advancements in production. These can encompass supply and demand or innovations in diamond mining and production.

This fluctuating nature means it can be difficult to ascertain when and how to sell diamonds to get the best return for their value. This article will explore why now may be an ideal time to sell, where to sell diamonds, and how much diamonds are worth in the current climate.

What is the current state of the diamond market?

The diamond market is currently experiencing a decline, largely due to the rise of synthetic diamonds and the impact of the COVID-19 peak. While there was a 4.5% price increase for 1 to 2-carat diamonds during the pandemic, it is believed people are diverting their spending towards other luxury expenses such as travel and experiences.

According to Liberum Capital Markets, lab-grown diamonds are indeed gaining traction. Their research indicates a significant increase in lab-grown diamonds within India's diamond export market. In June last year alone, approximately 9% of diamond exports from India were attributed to lab-grown diamonds, marking a notable surge from the 1% share observed five years ago. This rise is indicative of growing consumer acceptance and demand for lab-grown alternatives. The lower price point of lab-grown diamonds compared to their natural counterparts has contributed to their increasing market share, particularly within the US bridal market, with these synthetic diamonds now constituting an estimated 25% to 35% of the total volume. However, questions remain as to whether this trend will extend to the Asian market, which traditionally dominates the sector for higher-priced diamonds.

With lab-grown alternatives offering a sustainable and potentially more cost-effective option than natural diamonds, sellers may face growing competition. This may prompt those considering when and how to sell their diamonds to capitalize on the current demand for traditional diamonds in case it diminishes.

Why might selling my diamonds now might be advantageous?

Due to many interesting factors, now could be an opportune moment to consider how and where to sell diamonds. Alongside the rise of lab-grown diamonds, ethical concerns surrounding the sourcing and sustainability of diamonds are gaining traction, with consumers increasingly prioritizing transparency and social responsibility from companies. This heightened awareness could lead to a greater appreciation for ethically sourced diamonds, potentially increasing their market value. 

Moreover, Thomas Biesheuvel and Bloomberg have highlighted concerns about Generation Z's prioritization of brand identity and experiences over material possessions, which may not align with diamonds' conventional appeal. This shifting consumer landscape suggests that now might be an opportune time for sellers to explore their options and consider parting with diamonds while demand remains strong.

What are the potential benefits of selling diamonds now?

Given the current landscape, several compelling reasons exist to consider determining how much your diamonds are worth. Firstly, the uncertainty surrounding future market trends means you may wish to capitalise on these potentially favorable conditions before the value of your diamonds changes.

Not to mention that with lab-grown diamonds gradually gaining traction, looking out for how and where to sell diamonds now could potentially shield your assets from the possibility of shifts in consumer preferences down the line. 

 Lastly, when it comes to timing how to sell diamonds, it's important to consider your circumstances and investment goals. For instance, ask yourself whether you need access to funds today, or if you have other financial priorities that selling your diamonds could help you achieve.

Where should I sell my diamonds?

When exploring where to sell diamonds, it's essential to weigh your options carefully to ensure you get the best value. For quick transactions, you might consider using a pawn shop, however these typically offer lower prices. This is because maintaining a physical store often means they need wider profit margins. 

Alternatively, local offline jewellers and diamond buyers can provide a personal touch and the chance for negotiation, but being offline can make it more difficult to determine whether they are credible and trustworthy. In the same way, while auction sites are a popular choice when considering where to sell diamonds, they also take substantial commissions and require caution to avoid scams or exposing yourself to potential fraud.

To better protect yourself, you could consider using the services of a reputable online jewellery consultant or broker like Auctentic. Serving as an intermediary, we offer a hassle-free platform for selling your diamonds from the comfort of your own home. With a network of qualified luxury buyers and expert gemmologists, you'll benefit from extensive market knowledge and guaranteed payment within 24 hours.

By using an option like Auctentic, you are not obligated to accept your offer, meaning you can maximize the value of your diamonds while minimising the risks associated with traditional selling methods. In the end, where and how you choose to sell diamonds will largely depend on various factors, such as your desired price, how quickly you would like to sell, and how comfortable you are with the selling process.

What should I watch out for when deciding how and where to sell diamonds?

For a smooth selling process, it's critical to safeguard yourself against potential risks and disagreements about how much diamonds are worth. We recommend making sure to verify the credentials of any potential buyer, whether online or offline, to confirm their legitimacy and industry expertise. Look for certifications or affiliations with reputable organizations or ask them to provide them.  

It's also perfectly acceptable to ask your buyer for a detailed explanation of how they decided on the value of your diamond. It's a good idea to compare offers from multiple places to ensure you're getting a fair deal.

Finally, carefully review all terms and conditions before finalizing your sale, paying close attention to clauses regarding commissions, return policies, and insurance coverage to avoid surprises. Keep evidence of your appraisals, agreements, and communication with buyers somewhere safe, as this can serve as valuable evidence in case of disputes.

Final words of wisdom about how to sell diamonds

Remember that deciding where and how to sell diamonds can be a rewarding experience, but you do need to be diligent. Keep hold of all documentation throughout the selling process, trust your instincts, and seek guidance from trusted professionals if there's anything you're unsure about. With the right precautions, you can sell your diamonds confidently, knowing you've taken all the necessary steps to safeguard your interests.