Diamond Appraisal vs. Resale: Understanding Real Value

Diamond Appraisal vs. Resale: Understanding Real Value

Diamonds are a girl's best friend, but they're also a significant investment. If you are considering cashing in on this investment, you likely have lots of questions. However, the most critical question, and one that is often unclear, is how is the value of my diamond determined?

Let us help you navigate through the complex realm of diamond jewelry appraisals by providing insights into various valuations and their significance when it comes to selling your diamond.

Diamond Appraisal

Diamond Appraisal: What is it?

A diamond appraisal is a document that contains the critical characteristics of your diamond. An appraisal is typically performed by a Certified Gemologist, someone who has been trained to evaluate a diamond's carat weight, cut, clarity, and color (Read about the 4 C’s explained from the GIA). The purpose of a diamond appraisal is to provide an estimate of the diamond's value for insurance reasons. Insurance companies will typically use this document to implement a policy for your ring and allow it to be covered in the event your ring becomes lost, stolen, or significantly damaged.

When getting a diamond appraisal, the gemologist will carefully examine the diamond to determine its unique characteristics. They will look for inclusions, blemishes, and laser engravings, that may affect the diamond's value. Then they will provide a detailed description of the diamond, including its color, carat, clarity, and cut. Based on this information, the appraiser will estimate the diamond's replacement value.

Because an appraisal is for insurance purposes, typically, the appraisal will consider the future value of the diamond. This means the diamond is typically appraised for 10-20% higher than today's price.

Diamond Resale: What is it?

Diamond resale is the process of selling a diamond to someone else. The value of the diamond for resale is determined by its quality, size, cut, clarity, color, and current market conditions. When you sell a diamond, the value you receive will very likely be less than the appraised value. This is because the appraised value is based on the diamond's retail price, whereas the resale value is based on what someone else is willing to pay for it.

Diamond Ring

Why Understanding the Difference is Important?

Understanding the difference between diamond appraisal and diamond resale is essential because it helps you determine the true value of your diamond. Although appraisals are common, they can lead to misunderstandings. Many people mistakenly believe that the value listed on a jewelry appraisal is equivalent to its resale value, but this is not accurate. Diamond appraisals, such as those for engagement rings, often overvalue the item, sometimes as much as double the retail purchase price. This inflated value allows insurance companies to charge higher premiums. The reality is that a diamond's resale value is based on its unchanging characteristics and the demand for those traits at any given time.

Furthermore, without a Diamond Grading Report from a reputable organization, like the GIA (Gemological Institute of America), the appraisal's diamond descriptions are subject to the appraiser's subjective opinion, potentially misrepresenting the stone's actual qualities and, therefore, its value. Only expert diamond professionals, like those at BY VIVE, can accurately determine a diamond's true characteristics. It's important to understand that a diamond appraisal should only be used for insurance purposes and does not indicate the item's retail or resale value.

Understanding the Fluctuating Value of Diamonds

What's the significance of the value stated on your diamond jewelry appraisal when it comes to selling it? Well, the only real value lies in the diamonds and precious metal, and any additional factors such as labor and the original jeweler's profit are no longer relevant. The biggest factor that affects value depreciation is where the jewelry was purchased. Brick-and-mortar retail stores have higher fixed costs than pure online players and need to command higher margins. Signed jewelry brands, such as Cartier and Tiffany & Co., also command a premium on retail prices, but only elite brands will retain that premium when selling the diamond ring.

In summary, when comparing the value stated on your jewelry appraisal to the selling price, you should expect the resale value of your diamond to be significantly lower. This loss of value is most noticeable with diamonds, which are sometimes promoted as a good investment. However, this is a misleading sales tactic as, with few exceptions, a diamond sold to its first buyer will experience depreciation from its original purchase price, just like other luxury goods. The retailer made the profit in the initial sale, which means the owner will inevitably sell it to someone else at a loss.

The only exceptions to this rule are rare diamonds, like some fancy color diamonds, or unique and vintage signed pieces from brands such as Cartier or Tiffany & Co. These pieces are more likely to hold or even appreciate in value over time.

Diamond Appraisal

Using a Professional Jewelry Appraisal Expert

It's crucial to use the services of a professional jewelry appraisal expert when evaluating the value of your diamond. They have the expertise, equipment, and knowledge to provide accurate and unbiased appraisals. Professional appraisers follow industry standards and ethical guidelines, ensuring that you receive a fair and accurate assessment of your diamond's value.

At our company, we specialize in providing high-quality diamond appraisal services. Our team of certified gemologists has years of experience and can provide accurate and detailed evaluation of your diamond. We use the latest technology and equipment to ensure that our appraisals are precise and unbiased. We also provide exceptional customer service, answering any questions you may have and guiding you through the appraisal process. The GIA has issued an interesting article on  10 Tips for Buying a Diamond Online.


In conclusion, understanding the difference between diamond appraisal and diamond resale is essential when evaluating the value of your diamond. Using the services of a professional jewelry appraisal expert can ensure that you receive an accurate and fair assessment of your diamond's worth. At our company, we specialize in providing high-quality diamond appraisal services and exceptional customer service. book a jewelry appraisal today with one of our certified gemologists and get a precise evaluation of your diamond's worth.

Back to blog