Local or online diamond buyers are one of several ways to sell your diamonds. But you want to avoid diamond buyer ripoffs. These 5 tips will ensure that you get what your diamond is worth and you protect yourself.
- Beware of predatory buyers: You will be able to tell in the first few minutes if you are dealing with an honest buyer who wants to be fair, or entering a transaction that feels more like selling a used car than a diamond. Predatory buyers often use the same tactics. They will tell you everything that is wrong with your diamond, how bad the market is, how overstocked they are, how no one else is purchasing so you will be discouraged from shopping around. Then it comes, the low ball offer. Sure, they will negotiate and their price will come up. But is that who you want to do business with? Even if you feel you’re up for the challenge, this is their game and they are good at it.
- Know what you have: Diamond grading is subjective and each buyer may see your diamond’s quality slightly differently. One color or clarity grade up or down can mean the difference in hundreds if not thousands of dollars. While their opinion is the only one they care about because they are the one’s writing the check, knowing what you have prior to entering the transaction will help you state your case. Having a diamond grading report from the Gemological Institute of America is always your best route. While other diamond reports or appraisals can be useful, if your diamond is accompanied by a report from the GIA, there is no arguing the quality grade. The opinion from the GIA is the final word on the matter and all offers should reflect as such.
- Be confident: Enter the transaction carrying a pen and paper. Take notes and let them know that you are going to shop around. Force them to give their best and final price. Keep in mind the sly language noted under selling to jewelry stores such as, “its worth” or “We would be between “ $ X-$X”. Ask them to document the actual offer as well as how long it is good for in writing.
- No sob stories: If you are selling your diamond often times there is a life event that led you here. While your natural instinct may be to appeal to a buyers sense of compassion, remember that this is a business transaction for them. They may be honest and feel genuine concern for you and your situation, but they also have an obligation to their business, employees, and families to make wise business decisions. If you happen to be dealing with a predatory buyer, they will take advantage of your situation and need for immediate funds. Even if you plan on selling by the end of the meeting, don’t let them know that. Put on your poker face and make them worry that they will miss out on your stone. Their fear of losing business is the only thing that will cause them to make good offers, not their sense of compassion.
- Be realistic: There is a widespread misconception that diamonds are an investment item. The reality is that just as any other product you purchase, once you pay retail and walk out of the store, the value drops immediately and significantly. If you are requesting a price that is unrealistic, buyers will simply dismiss you and not take you seriously. Consider that they have to be able to resell your diamond and make a fair and reasonable profit. Educate yourself on the second hand market, use information obtained from other legitimate offers, and most importantly, once you get an offer that you feel to be fair, take it. Because if you don’t it may not be there when you return.