We suggest that you take three factors into account when considering if it’s an appropriate time to part with your old diamond ring. Emotional and financial factors are the first two. The will help you decide if you’re ready and if now is the time, and then you should consider the future. Will you regret this decision in 20 years’ time?
Are You Really Ready?
Before you start the process of selling an old engagement ring, ask yourself the hard question. Are you really ready to part with the ring? It is perfectly normal for the ring to hold deep emotional significance, and often it takes people (men and women) a long time to get comfortable with the idea of not owning the ring any longer. Picture yourself handing the ring to someone else and knowing that you will never see it again. If this troubles you, perhaps you aren’t quite emotionally ready yet.
Diamonds, gold, silver, and platinum are all subject to price fluxions based on supply and demand. Historically they have been subject to counter-cyclical trends. If the economy is generally doing well, metal and diamond prices usually relatively under-perform. In a weak economy however, gold usually outperforms other markets. This is a relative measurement, and doesn’t always extend to consumer prices, but it’s worth considering when you decide to sell your engagement ring.
The reality is that if you try to time to market to sell at the exact height of gold prices, odds are you’re going to guess wrong and probably waste a lot of time in the process.
We believe that the best time to sell an engagement or wedding ring is when you are emotionally prepared to sell. No matter how recent or distant yore divorce, don’t underestimate the feelings and emotions you still have attached to your ring.
Diamonds are an interesting asset. They aren’t truly a commodity because each stone is unique. They are more like snowflakes than like crude oil. Different size, color, and quality rocks come are coming out of the earth all of the time, but that doesn’t mean that supply and demand are always at an equilibrium. Unlike gold or silver, you can’t simply look up a diamond price in the New York Times or on Google, but there are definitely historical trends in the price of diamonds.
Current prices are historically very high. Although down slightly from their high in the last 12 months, from a decades long perspective prices are strong.
Metals, gold in particular, are commonly traded commodities with prices that you can look up just about anywhere, but that doesn’t quite translate into the value of the metal in your ring. There are different qualities of the metals, such as 14 karat gold and 24 karat gold. The difference refers to the purity of gold, with 24 being pure gold and 14 karat being 14/24th pure gold, or 58.3% pure.
Gold prices, along with the prices of silver and platinum have risen substantially over the past decade. Much like diamonds, prices of metals are very strong from a historical perspective.
The market for recycled diamonds is large and robust. Ten years ago people had substantial difficulty selling old engagement rings, but today there are businesses like The Diamond Lining, and infrastructure in place that have made the process safe, secure, and fast. Although no one knows what the future holds, your ability to sell is much greater than it was in the past, and prices are relatively high. If you are emotionally prepared to part with your engagement ring, there is no time like the present. The future holds a lot of uncertainty around prices and demand. So you safest option is to sell sooner rather than later.