At some point, you invested a significant amount of time, energy, and money into buying an engagement ring. Then, it happens. The “D” word.

What do you do with your ring now?

Maybe we should start with what you shouldn’t do. All too often, people toss their ring into a jewelry box and hope it gets lost in the abyss of costume jewelry.

Or, if they aren’t in any rush, they tuck it away for a rainy day fund. This method can work if that rainy day is forecasted soon. But if a few years go by, you may lose on your investment.

While you can’t get back your time or energy, selling your engagement ring (while the market is hot) is the best way to get back your money. But, here’s what you need to know if you want to do it right.

1) Understand how your diamond is graded (The 4 C’s)

Your diamond is graded on the 4 C’s: Cut, Clarity, Color, Carat.

Cut: Simply put, the better the diamond was cut, the more sparkly it is! But, most people have diamonds which are either Poor/Fair or Good cut.

Photo courtesy of the GIA

Clarity: This refers to the number and visibility of imperfections, like black dots, cloudiness, or small cracks, in your diamond. The grading will depend on how visible the inclusions are to the naked eye and under 10x magnification. Most people have diamonds that range from I3-SI1 in clarity.

Photo courtesy of GIA

Color: Does your diamond have a tinge of yellow? Or is it clear? You can hold your ring against a piece of white printer paper to see.

Photo courtesy of GIA

Carat: This one is simple. How much does your diamond weigh? Diamond prices increase with the weight of your diamond.

While not a ‘C’, the shape of your diamond is also important. For example, shapes like princess or marquise are sometimes worth 30% less.

Want to learn more? Go to the Gemological Institute of America, the industry standard for diamond grading.

2) Get a reality check….this one is important

Still have the receipt from your buy? Or an appraisal? Put them back in the file cabinet–they’re no good for you here.

An appraisal reflects the replacement value of your ring if it was brand new. You use appraisals strictly for insuring your jewelry against theft or loss.

When you sell your rings, you get the resale value. Your wedding rings are “pre-owned” or “second-hand”, like the True Religion jeans you sold to Plato’s Closet last week.

This means the buyer, whether an estate jeweler or pawn shop, will not take into consideration the original labor, design, or current trend, that went into the ring.

You’ll be paid for the materials, i.e. the precious metals and diamonds. See next point.

On average, most people get 20-25% of the replacement value. But you could get less. And yet, it’s still worth more than those True Religion jeans.

For example, appraisals are often over inflated to help cover the cost of replacement. Your diamond could be a different grade than what the paperwork indicates.

If you have GIA paperwork, bring that with you! Buyers are willing (and able) to pay more for certified stones.

3) Stay up-to-date with precious metals and diamond market trends

The best way to get the most of your jewelry is to stay on top of precious metals and diamond market trends. When gold is up, sell. When gold is down, buy.

It’s that simple. You can keep up with gold prices here. Hint: Right now, it’s up.

Photo Courtesy of Kitco.com

4) Ask the right questions

You understand how your diamond is graded and what you can expect on the price. Now, it’s time to find a buyer you can trust.

Many people are afraid to ask questions during the sale process. The “Mafia Rule” doesn’t apply here.

Asking (tons) of questions will give you the information you need to make a decision to sell. You’ll learn if the buyer understands diamonds and how to price them. Check out our list of questions you should ask any buyer.

Like any used item, you won’t get back the full price. But, unlike other used items, you do get more of your investment because gold and diamonds are a commodity.

So, grab your ring, take a deep breath, and let’s put that relationship behind you.

Want to know how much your diamond ring is worth? Schedule your free one-on-one valuation by calling Alex at 901-324-4009.