#16 - So, You Wanna Sell Your Diamond

Posted on Thursday, June 21st, 2018 at 7:53 pm by LaLonde

Most couples wanting to get married usually go out looking for diamonds. They have an idea of what they are looking for. For the most part, they are in their mid-twenties and it is probably their first major jewelry purchase.

Now, I have seen it all! The lady usually has a design in mind and the gentleman is nervous as to what this is going to cost him. I know what types of diamonds weather the test of time and keep their value solid for the future. But try telling a twenty-four year old lady she is buying the wrong shape diamond, or that a particular style is popular now but won’t be soon. I mention this, and I lose a customer.

So, I sell them what they want to buy. The wrong shape, size, too high or too low clarity, or wrong color. If they ask for my advice, they often don’t listen. Then they engrave the inside of the ring, because of course they are going to be together forever!

Then there is the sad part when it doesn’t work out. And one of the two of them is back in my store with the ring. Remember the ring? The wrong shape, the wrong style, and the wrong clarity and color. Oh, and it says “Love Forever, Louie” on the inside of the band! Guess what, now they are selling it to the wrong guy. I can’t really use it, and frankly no one else can either. It will have some value, but not near what it cost to buy. A much better situation is a person who heeded the jeweler’s advice and purchased the right shape, style, clarity, and color. This is going to be a much more desirable diamond for a jeweler to buy.

But, other factors are in play when I sell you a two-carat diamond of high salability. I go out and actively search for that diamond on the wholesale market, making deals with diamond site holders to purchase over a period of time. Maybe even up to six months. Now, you return with the two-carat diamond and want to sell it back to me. You want a check for it now, you don’t want to hear “I’ll pay you over six months”. What many people don’t realize is that I just made a deal where I am buying 5 or 10 of them, so I don’t need the diamond, unless it goes for substantially less and I feel comfortable to carry the finance on it. It is impossible for a jeweler to know when someone is getting a divorce or when Grandma passes and a diamond comes up for resale.

Something I hear often is “another jeweler says I should get $5,000 for my ring, and you are offering me $3,500”. I usually respond with “you should go sell it to them”. This is followed by “they say they don’t buy their own jewelry back.”

One of my favorite analogies to illustrate this point is the butcher who is told that the hamburger at the market across the street is $1 per pound less than his. “Go get theirs” the butcher says. “He has none left in stock”, responds the customer. In frustration, the butcher exclaims “well, when I am out of stock I charge $3 less per pound!”

I always feel bad when a young lady comes in to sell her diamond with three children in tow. Clearly recently divorced, and with a story that illustrates a desperate need for the money. These situations are tough, and sometimes I offer a bit more money.
So, if that isn’t your situation…go and rent some kids to bring in. You just might make out better!

Written by Daniel J. LaLonde

© LaLonde Jewelers 2018