The popular sentiment is that a diamond is forever, but there can be a number of reasons for you deciding to sell one or more of your own. You may need the funds for personal reasons, such as for a home remodel or to fund an education. Maybe you have inherited a piece you know you'll never wear. Whatever the reason, selling a diamond can be a smart financial choice if you know your options and the value of your jewelry.

What affects value of a diamond? Selling a diamond is not as straightforward as selling gold, which is melted and has a quantifiable value. Keep in mind that a diamond is essentially worth what someone is willing to pay for it, and there are a number of factors that affect the value of a diamond. The following tips will help you understand just what affects the value of a diamond and let you keep your expectations realistic, all while helping you get the best price.

THE 4 C's

Diamond prices are traditionally determined by the 4 C's: color, clarity, cut and carat weight. A diamond that has the highest carat weight, the best cut, and the clearest and most colorless will command the top prices. Carat weight determines pricing, so the heavier the stone, the more valuable it is. Even one one-hundredth of a carat can make a difference. A diamond weighing .99 carat is not as valuable as one that weighs 1.00.

Cut refers to the diamond's shape Modern diamonds, as opposed to antique pieces, tend to have a higher monetary worth because they have near-perfect cuts. Clarity is about a lack of blemishes or flaws in a diamond. Fewer imperfections equal a higher resale value. Most white diamonds, though they appear to be colorless, have some hints of brown or yellow. The more colorless a diamond is, the higher its value. Colored diamonds have a separate evaluation scale.

Market Trends

Diamond jewelry trends are becoming increasingly global, and this can translate into a wider market for your pieces. Keep in mind that trends are, by definition, ever-changing, and you will want to temper your expectations accordingly. To discover today's market trends, you can have your diamond jewelry professionally appraised or do the legwork yourself. A good professional appraiser follows the prevailing trends and can help you set a realistic price. If you want to do your own research, look to sites like eBay for sales of jewelry with characteristics similar to yours. You can also check out comparable pieces in retail stores, but be sure to factor in the condition of your jewelry.

If you've decided the time to sell is now and that you are emotionally ready to do so, you have the option of selling to the jewelry industry or directly to the public. Selling directly to the jewelry industry has many advantages, including a quick and safe sale coupled with negotiation and marketing skills you may neither possess nor want to handle. Do your homework on several buyers and choose the one you most trust to handle the sale. If you've armed yourself with the above knowledge, the sale will be mutually beneficial and satisfying to both sides.