What is the Difference Between Diamond Ring Appraisal and Selling Price?

A diamond ring is sometimes sold with a diamond ring appraisal which will determine how much your ring is worth, but does this mean you will buy or sell it for this price? What is the difference between diamond ring appraisal vs selling price?

The difference between a diamond ring appraisal and selling price is that a diamond ring appraisal has taken into consideration several factors such as quality of the diamond, carat weight, metal value, brand, location, labor, and markup. However, the selling price of the diamond ring will be notably less because a diamond ring appraisal is always marked up in price, usually by inflation of 100%, which is a substantial amount of money.

Keep reading as I explain all the ins and outs of the various diamond ring prices versus what they appraise for.

Retail Price vs Appraisal

Even though an appraiser may give a diamond ring a specific value price, the vast majority of the time the diamond ring will not be sold for the price. Appraisers will always inflate the value of the diamond ring.

You might ask why they aren’t sold for the price that it’s valued at; some people think that it’s to make the buyer believe that they are getting a great deal, or so that insurers can charge a higher premium, there is a lot of controversy to it.

Independent Resale Price vs Appraisal

When you are independently selling a diamond ring, it will always hold a particular value no matter how old it might be. It is usually determined by the price of similar diamonds, that have similar characteristics and qualities.

When reselling, it is exceedingly likely you will not get as much money as you originally paid for and definitely not the appraisal value. Diamond rings are like cars; they devalue in price. As soon as you leave a jewelry dealership, the value of the diamond ring will be less.

What is a diamond ring appraisal?

A diamond ring appraisal assesses the value of an entire diamond ring. It is a certified document which the ring will be sold with. The appraisal helps the seller of the diamond ring to know how much it is worth. They will then be able to determine their own price from this. Some of the details in a diamond ring appraisal include:

  • The quality of the diamond – the cut, quality, clarity, color
  • The weight of the carat
  • The metal value – the actual ring of a diamond ring is usually made from metals such as gold, platinum or palladium, the professional doing the appraisal will take into consideration the value of the metal to help determine how much the diamond ring is worth.
  • Brand name – e.g. Tiffany & Co. An individual brand name can up the value of the diamond ring significantly.
  • Location – some locations mean that a diamond ring is worth more
  • Labor – The amount of time taken to produce the ring will consider the worth of it
  • Markup – The value of the ring is always marked up

A diamond ring appraisal is very often used for insurance purposes according to honeygood.com, just in case something happens to the diamond ring, such as theft, loss, or damage.

Is it worth having your diamond ring assessed for an appraised value?

Sometimes when purchasing a diamond ring, they will already be sold with a diamond ring appraisal. Usually, sellers like the Blue Nile or James Allen will sell with an appraisal. Sometimes other sellers will sell appraised diamond rings too.

If you are reselling your ring, there isn’t usually much point getting it appraised because it is pretty much known that you will not receive the given value when selling it. If an appraisal were free, we would recommend it. But it costs, and we deem it as unnecessary.

On the other hand, it might give you peace of mind having your diamond ring appraised. It means you can insure it, without a diamond appraisal, insurance companies will not give you an insurance policy. If something was to ever happen to your ring, such as it was stolen, you lose it, or it is damaged having an appraisal and insurance will cover the full financial cost.

What is the difference between diamond ring appraisal vs selling price?

The difference is that a diamond ring appraisal will list a much higher value price than what the diamond ring will sell or resell for. The diamond ring will always retail for less money, and if you were to resell your diamond ring after purchasing from a retail store, it would be worth even less money, usually between 25 and 50 percent cheaper.

Just be vigilant when buying or selling a diamond ring. Make sure that when purchasing it is a legitimate seller and you aren’t being overcharged. When you are selling, make sure you know the exact value of your diamond ring at the time. You don’t want to lose out on money.

Carl A. Jones, GIA GG

Carl A. Jones is a GIA Graduate Gemologist with over 20 years of experience in the diamond industry. He is an independent jewelry appraiser. He specializes in determining the value of diamonds and advising consumers on how to buy quality diamond jewelry.

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