Is it feasible to buy second hand or used diamonds safely? Insiders in the diamond trading industry are scrambling to figure out what diamond prices are going to do in the coming months and years. We’ve watched diamond prices skyrocket over the past few years as the value of the US dollar weakened.  The past 6 months have seen a decline in diamond value and a virtual halt to gem quality diamond production.  Furthermore, many second hand diamonds and used jewelry are being made available at tremendous discounts (relatively speaking) as consumers look for ways to get cash by selling into the market.
If the Obama administrations’ plan to flood the US economy with dollars triggers the type of inflation most economists expect, we expect diamond values to once again rise. If there is limited supply due to the lack of polished good production, this should also bring the price of diamonds higher. This will also make those second hand diamond purchases a tremendous investment for those who chose to buy such. The question for dealers is, how much cash are you willing to convert to inventory?

Helping clients resell their gold and diamonds has always been an important part of our business.  There are usually three different reasons one would want or need to sell their engagement ring. The typical reasons include broken engagement or divorce, looking to upgrade their diamond or rebuild the engagement ring mounting, or due to difficult financial circumstances and there’s a need to liquidate any tangible asset they can for cash. My ability to assist with clients need to “dump” their diamond engagement rings as of late has become quite the commodity and  I dare say one whose value might one day rival that of the diamond itself.

The universal down swing in the global economy, tighten of credit markets, job loss are some of the many reasons clients have been scrambling to our partners to get cash for their stones. It’s an interesting phenomenon and one that may flood the wholesale market with unwanted inventory and thus cause a drop in diamond prices.
Little tip to consumers out there: if you are in the market for an engagement ring and you’re looking to get the biggest bang for you buck, you may want to consider buying a second hand diamond. Chances are if a dealer does have a second hand license and access to cash, he’s been using these past two months to buy off the street and for ridiculously low prices perfectly good, well cut and in some cases certified diamonds.

The notion of buying a “used” diamond is to some, anathema, but take it from an insider, diamonds are a commodity for the most part, and they don’t wear or lose value over time.  So rather than limit yourself to that “new” GIA certified diamond that the dealer bought himself for 20-30% off Rap, you may ask to see “second hand stones” that he bought for 50-70% off rap and is willing to sell to you for 30 back.