What’s The Difference Appraisal Vs. Diamond Resale Value?
A diamond’s value is determined by the cost it will take to create a similar stone. This can be anywhere from a few hundred dollars to many millions of dollars, depending on the type of jewel and how rare it is. The appraised value on an item is what the seller believes that their item should fetch when they sell it, and the diamond resale value is how much someone will pay for one with imperfections so they can cut better quality diamonds out of them.
GENERAL UNDERSTANDING AND DIFFERENCE BETWEEN APPRAISAL AND RESALE VALUE
To make the difference between an appraisal and resale value clear, it helps to know the difference between “appraisal” and “resale value.”
Appraisal: The estimated value that a diamond will fetch when it is sold.
Resale: The amount a buyer is willing to pay for an item that has imperfections on it. Depending on the imperfection, this may be below or above the appraised value.
The main difference between an appraisal and resale value is where they are based on. An appraisal is based on the cost of creating a diamond equal in quality to the one being sold. Resale value, on the other hand, is based on the buyer’s willingness to pay for an imperfect diamond. Gold And Diamond Buyers use both of these values to arrive at the price a jeweler will pay for an item in order to resell it. The difference between an appraisal and resale value is mainly based on the presence of flaws that can cut down on the quality of a stone. Flaws will lower the appraised value because they mean less income for the seller, but there are very few cases where they will lower resale value. In most cases, it is better to buy an imperfect or flawed diamond than to cut one out of its original rough form. Gold And Diamond Buyers can appraise your diamond and provide you with an accurate resale value. Appraisal values, like most other goods, are based on the cost of producing a similar item from scratch. For example, a regular diamond without any imperfections would take the same amount of labour and resources to produce as one with fair or poor qualities. In other words, the price someone will pay for a stone is never higher than its appraised value because its price is automatically calculated by what it would cost to create one just as good – if not better – than the one you have in mind.
YOU SHOULD REALLY APPRAISE YOUR DIAMOND BEFORE YOU SELL IT:
The first thing to understand about the resale value of a diamond is that it changes with time. This is especially true for all diamonds that are over one carat, as the larger they get, the less expensive they become. The second thing to understand is that appraisal and resale values don’t always reflect the market price of a diamond on any given day. They reflect what buyers will generally pay based on trends over time and consider factors such as cut, clarity and colour. These two values are very different because appraisal considers how difficult it is to produce a diamond; while resale value is based upon how much someone would pay for one – even if it was flawed or imperfect. Gold And Diamond Buyers use appraisals from The GIA to provide you with the best possible resale value for selling your diamond. It also uses a percentage system to allow sellers to get a better idea of what they should expect than just a fixed dollar amount. A large part of our service is getting you the most from your diamond at the best price possible – providing you with stellar customer service and helping you make the most profit on whatever jewelry you sell.
This is why you should never sell a diamond unless you have had it appraised first. Doing so puts the seller into a position where they are likely to be taken advantage of by a buyer, who will know exactly how much they want to buy the diamond for. This information can be used against the seller, who is under no obligation to sell their diamond.
WHAT FACTORS AFFECT A DIAMOND’S RETAIL VALUE?
The retail value of an item is normally determined by the specifications that a buyer looks for when deciding to buy something. In the case of diamonds, this means cut, clarity and color. Among these three standards, cut has the greatest effect on a diamond’s retail value. Diamonds are normally valued with four primary characteristics or “C’s” – cut, carat weight, color and clarity. The first of these is “cut,” which is based on how well-proportioned it appears to be and if its shape enhances its value. This term is normally used as a measurement of the light performance or “fire” that a diamond can deliver.
Cutting is not always a factor in the prices of diamonds. In most cases, carat weight (carats) and color are the most important. This is because almost all diamonds are in the range of 0.5 to 1.0 carat, which means that very little comes into play when it comes to cutting, other than that which can be determined by the eye. Since diamonds of any color or clarity can be found, there’s usually no point in being picky unless you have high expectations for your diamond’s beauty in one aspect or another that are not met by most stones.