You’ve probably seen the headlines when legendary auction houses like Christie’s or Sotheby’s sell diamonds for huge sums. If you’re considering the best option to sell your heirlooms, vintage, or unwanted diamond jewels, perhaps this seems like a tempting idea. However, is it better to sell at auction or directly to a buyer? Let’s review the pros and cons of both options.
WHAT’S DIAMOND AUCTIONING?
Auctioning diamonds works the same way as auctioning any item. The auction house sets a minimum price for your diamond or jewelry. Potential buyers can make a bid at incremental values until there is a winner within a particular time or until no more buyers make offers. The house either takes a percentage of the final price or a set fee.
PROS OF AUCTIONING DIAMONDS
While auctioning diamonds puts you in touch with industry experts and your item could land in front of the right bidders. It is important to mention that reputable auction houses don’t just accept any diamonds. They focus on rare stones, such as scarce fancy color diamonds with an outstanding grading, which can fetch millions from wealthy buyers or collectors. Non-fancy color diamonds, i.e., white diamonds, can make it to auction, but they must be unique in cut, clarity, color, and size (i.e., over 5ct.).
CONS OF AUCTIONING DIAMONDS
It takes a certain amount of time and effort to sell via an auction house.
If you’ve verified officially that your diamonds or diamond jewelry meets the standards of auction houses, you need to find reputable auctioneers in your area.
Each specializes in different jewelry and diamonds, so you need to know if they’re your right port of call. You also need to establish the cut they take from the final price, process, and payment method. If they are interested in selling your jewelry, you will have to set a reserve price and the time of the auction.
If you’re looking to sell quickly, an auction may not be your best option. If you do opt for auction, remember that after all is said and done. There is no guarantee that your diamond jewelry or stone will sell at the first auction or even the second or third.
Perhaps all this uncertainty about final price, process complexity, and required effort may not be for you.
SELLING TO A JEWELRY BUYER
The quick process of selling your jewelry to diamond or gold jewelry buyer is the advantage. You can either accept or reject the quoted price.
Also, if you’ve chosen the right buyer, you’re working with a diamond expert who can establish the accurate value of your diamonds based on up-to-date market prices.
The main issue in selling directly to a diamond buyer is finding someone established and trustworthy.
DJP Diamonds not only has both of these attributes but provides clients with a free appraisal. This way each person will know the value of the item appraised.
Compared to auction, this is the simplest and quickest way to get the best possible dollar value without having to part with a percentage of your earnings.