How do you sell gemstones at a healthy profit?

How do you sell gemstones at a healthy profit?

  • Why sell gemstones?
  • Where can you sell gemstones?
  • When is a good time to sell gemstones?

Gemstones such as diamonds, sapphires, rubies and emeralds are rare and highly sought after by collectors and jewellers. Due to the fact that gemstones are natural products with a finite supply, they continue to increase in value over the long term. Buying and selling gemstones can be such a lucrative activity. Are you planning to sell your gemstones? In this article, we'll explain what to bear in mind if you are looking to sell your gemstones at a healthy profit.

 

View the resale options available from BNT Diamonds

 

Why sell gemstones?

Gemstones are often processed and used in jewellery, largely because of their aesthetic and sustainability credentials. They are cut and faceted to a particular cut, depending on properties such as colour, shade, inclusions and fracture surfaces. Diamonds, sapphires, rubies and emeralds also have their own specific symbolism, which gives the jewel its unique value. Jewellery containing gemstones is often considered an heirloom or is given to celebrate a significant event or to milestone in someone’s life. Diamonds, for instance, are a popular choice for engagement rings.
If you are looking to turn the value of your gemstone or diamond, sapphire, ruby or emerald jewellery into cash, you might decide to sell your gemstones. Your gemstone could realise a sizeable value, depending on its quality. Investors who purchase gemstones intending to sell them on later for a significant return also sell gemstones regularly.

Where can you go to sell gemstones?

There are many methods for selling gemstones. You can list your diamonds, sapphires, rubies or emeralds with online auctions such as eBay or Catawiki. This is easy to do, but it also carries a risk. Since estimating the exact value of gemstones is a job for experts, there’s a good chance you might be listing yours for sale at far too low a price, or you have overestimated their value and this will discourage buyers.

Another option is a jeweller. Jewellers will usually offer you a price based on the estimated value of your gemstone. This price is much more accurate than if you tried to figure out the value yourself. If your gemstones come with a certificate from a reliable lab, you have a better chance of selling them at a higher price. After all, the value of your gemstone is recorded on your certificate in black and white and this information will be taken into account when pricing them.

When is a good time to sell gemstones?

A gemstone’s value is determined by its quality and shows an upward trend over the years thanks to its scarcity. The cost of gemstones is to some degree based on value, but also depends a lot on economic, political and environmental factors. It often makes more sense to hold onto your gemstones for longer, considering that the value goes up.

Are you still looking to sell your gemstones? Then it is best to sell them when the demand is at its highest. The price of commercial gemstones, such as round cut colourless diamonds, depends very much on the economic climate. In times of financial crisis, it is therefore, better to hold on to these diamonds for a while. Coloured diamonds and other rare gemstones, such as certain types of emerald, sapphire or ruby, are more of a niche market and therefore, less affected by the economy. If you are looking to sell these types of gemstone, we recommend seeking advice from an expert. Nevertheless, a good knowledge of this niche market is required, to determine the right moment to sell.

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

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