Loose diamonds, which are sold without a setting, are convenient for some buyers and sellers who simply want to invest in and profit from gemstones. They are also commonly purchased ahead of setting for engagement rings. The value of loose diamonds still comes down to the 4C's (cut, clarity, color, and carat). Here's a look at how buyers and sellers arrive at loose diamond prices.

Reasons To Sell Loose Diamonds

One of the top reasons to put loose diamonds on the market is that they are among the easiest types of jewelry to sell. Those who only care about the gemstones benefit from avoiding the extra cost of setting. This scenario puts the focus on the gem itself and sidesteps the issues of dirt accumulation from the setting, along with wear and tear. A setting can damage the gem if it isn't done properly. Furthermore, some settings fall out of style.

So without a setting, you have less degradation issues to worry about. All you have to do is protect the quality of the loose diamond by keeping it wrapped in cloth or stored away in a safe place. That way there's less chance of it getting chipped.

Pricing Loose Diamonds

Unlike mounted diamonds, age has little to do with the pricing of loose diamonds. The condition of the gem is much more important, along with the 4Cs. Market sentiment is a more hidden part of the equation and doesn't necessarily become evident until you put the item on the market. If the diamond is GIA-certified, it will probably command higher value than an uncertified diamond. Consider taking the item you want to sell to a certified gemologist for an objective evaluation.

A loose diamond in good condition with a carat weight of 1.00 to 1.50 typically has a value of about $6,000. Keep in mind, market value is constantly changing due to trends, inflation and other economic factors. Ultimately, it takes a buyer to make any price convert into cash. Would you rather liquidate the item as quickly as possible for the lowest price or hold out for a buyer at the highest price?

If you are looking to buy a loose diamond at the best price, be aware of the 4C's and make sure it's certified by a reputable jeweler. While the brand name can add to the value, focus on diamond quality and condition as the most relevant criteria. Of course, you also should consider how attractive it is, which can sometimes make up for other factors.

Conclusion

Buying and selling loose diamonds is a worthwhile endeavor for collectors, investors and traders of jewelry, because of the endless demand. Contact Ralph Mueller & Associates for more information on loose diamond prices or any questions you have about the buying and selling of beautiful gemstones.