Before Selling Your Diamond, You Need To Face The Fact That You Are Going To Lose Money

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Diamonds are some of the priciest items on the market at the moment. There are some diamonds that are much more valuable than the average person’s house or car. While diamonds are very expensive, trying to buy a diamond as an investment item would probably be one of the most unfortunate ideas a person could have. You may find that diamonds are very costly, but when you try to sell a diamond, you would be surprised at how low the selling price of a diamond is for a private seller. This exact scenario has disappointed quite a large number of individuals – not only those who initially thought they are buying a diamond as an investment, but also those who required cash urgently and had no other way apart from selling a precious piece of jewelry that was fitted with a diamond.

The question behind this complicated matter is: “why do you lose so much money when you try to sell a diamond?”. In this post, we would like to provide a clearer answer to this particular question, as well as take a look at how a person can minimize their loss should they wish to sell a diamond, and consider some alternative options that a person may have.

Why Selling A Diamond Means Losing Money

Let’s start by looking at why you will not be able to obtain the full value of your diamond should you wish to sell it. There are numerous reasons for this and one important fact to consider is that a diamond you buy immediately loses a lot of its value as soon as you leave the store with it. One of the primary reasons why you should expect to lose money when selling your diamond and why your diamond loses its value so quickly is due to the fact that jewelry retailers tend to uphold close relationships with their suppliers. These jewelry retailers often also do not have to pay upfront for any of the diamonds they wish to put on display in their local store.

diamond ringsWhen a jewelry store has built up a relationship with a supplier, the supplier is usually willing to borrow them a certain amount of diamonds. These diamonds are then put up on display at the store and the jewelry retailer only have to pay the supplier should they sell the diamond. This already means that they pay a lot less for a diamond and they do not have to pay a significant amount of upfront fees; thus there are no risks involved for them.

Should the jewelry store decide to buy a diamond from you, they have to justify such a purchase in some way – and this is why they offer you such a low amount. Since they have to take a risk when buying your diamond, as they do not have a guarantee that they diamond will sell, they have to offer you a low price. Additionally, the jewelry store would not be able to offer you the full value of the diamond as they would not be able to profit from its sale in such a case.

When it comes to buying a diamond that you are not sure you would want to keep forever, try to buy the diamond online in order to minimize your losses. Additionally, you can look for jewelry retailers that offer money back guarantees, as well as those with lifetime upgrade features.


If you have ever tried to sell a diamond you own, then you already know that there is no way of obtaining the full value of your diamond – in other words, you will receive a much lower amount of money for your diamond than what you initially paid for it. This is an unfortunate fact that has disappointed many. We have taken a look at why people lose money when selling a diamond in this article, as well as discussed how a person could avoid such a disappointment by shopping in a smarter way.


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Kevin Lee is a former tech advisor who cut his teeth in Silicon Valley. He now spends his time sharing his passion for investing in diamonds and jewelry. You can reach Kevin for any comments by using the contact form on this site. Don't forget to sign up for his free "Investing 101 Guide" by clicking on the button at the top right of this website.