You looking to buy a diamond ring? Or maybe you want to sell your gems? Perhaps you are thinking about trading in your old stone for a new one?
No matter where you are in your relationship with your diamond, you always find yourself asking the same old question. Just how much is my ring worth? Well, just like your diamond, the answer is a bit complex.
The value of your ring is compromised of two factors. The metal of the band and the stone that is set in it. But how do you know how much either one of those are worth?
That’s why we’re here!
What is the Quality of the Diamond?
When you buy a diamond you receive a certificate, assigning a grade to your gemstone. These are based on the 4C’s-color, clarity, cut, and carat. Diamond quality is the number one determining factor on the value of your stone.
1. Figure Out the Retail Market Value of Your Diamond
When you are buying a house, the value of your new home varies based on neighboring houses’ worth. Diamonds work in the same way. The best way to figure out the value of your diamond is to compare it to other gems with the same characteristics.
This will not give you an exact worth, because no two diamonds are the same. The slightest inclusion on your ring can change the value of your diamond. However, you now have an idea as to what you can expect your ring to be worth.
2. I Have the Diamond Value, Now Let’s Sell It
Well, hold your horses there! You are in for a world of disappointment if you think that number you just saw is going to be what you get. Sorry to say it, but jewelers are not going to give you retail value for your diamonds.
They’re just not. They need to pay their bills too.
It would be practices if a jeweler were to give you the dollar amount you just researched. They can buy diamonds wholesale (and brand new) for the same price!
Also when they are buying used off of you, they are buying the damage you may have caused to your diamond. The chip on the band, or the staining of a once colorless gem, or the missing stone in the setting. They need to buy your ring from you, fix it, and then flip it for a profit.
Between just us friends, you can get anywhere from 20% to 70% of your diamonds retail price. The price is such a wide range because it depends how you go about selling your ring. Selling it on consignment will earn you a different dollar amount than selling directly to a dealer.
3. Now, For the Band
You thought we were done, didn’t you? People always forget about the band. No diamond ring is complete without something to set the gem on!
Diamond rings are typically made with a gold band. Gold is measured in carats, with 24K being the highest. When gold is 24K, it is 100% pure.
24K is usually too soft for jewelry use. 18K, which is 75% of pure gold, is usually the highest bands start at. Once you know how much your band weighs, you can find out the price per gram.
Time for Math Class!
4. Adding Up Your Diamond Value
Alright, get out your calculators and let’s crunch some numbers! I promise this is much more fun than the Pythagorean theorem.
Earlier, we gave you a link to compare your diamond to others. Instead of scrolling back up, you can click here and do it again!
For all intents and purposes of this exercise, we are going to fill out the same calculator with a diamond I wish I had. A 1 carat heart shaped diamond with VS1 clarity and a color grade of E is estimated to be worth $7,425.00. Sweet!
But remember, you will get as little as 20% of that value, depending on how you sell it.
5. Adding Up Your Band Value
Next up, the band! We will go with the common 18K (75% gold) band. Let’s say your band weighs 10g. You multiply that number (10g) by the 75% your gold is worth and voila! You have 7.5g of gold.
From there, find out how much gold is currently worth per gram. As of this writing it is $42 dollars! 7.5g X 42.00=$315.00.
Now unlike your diamond, you are more likely to 60%-80% of the retail value. Not a bad deal. No wonder the diamond always says they’re with the band. Sorry, bad joke.
So now you are well versed in how to find the value of your diamond ring! Just remember, it’s not just your diamond to take into consideration. The band is part of the deal.
Also, be sure to take into account that you are not going to get full retail value. We hate to see your bubble get burst.
Lastly, stay on top of how much your investments, both the gold and diamonds, are worth. These things fluctuate. Keeping an eye on the trends will help you get the most value out of your possessions.