Why Was I Offered Less Cash For My Diamond Than The Diamond Appraisal Value?

If you are selling your diamond, you are probably comparing offers from a few different places. When you first start hearing these offers, you might start to receive some numbers that surprise you.

In lieu of an offer, most companies will give you an appraisal value until they have seen the stone in person. Then, when they are able to examine the diamond up close, their cash offer will almost always be lower than the initial quote.

So, why would someone offer you less for your diamond than the appraisal value? It doesn’t seem to make much sense.

Let’s take a look at some of the differences between these two numbers:

Diamond appraisal vs. cash offer for your diamond

Before you send in your diamond, most companies will ask for some information on it and will give you an “appraisal value”. The appraisal value can be a misleading number because this is not the amount you will receive when selling your diamond.

A diamond’s appraisal value is based on what the company believes the retail price of the item would be in a jewelry store’s showroom. Like in any business, diamond buyers can’t buy inventory at retail price. Instead, they will offer you a discount to the appraisal value that they believe is fair for both you and them.


What’s the point of a diamond appraisal value if you’re going to get a lower cash offer anyways?

If you are thinking of sending your diamond somewhere to get a cash offer, companies will determine an appraisal value for your diamond so that they can insure it during the shipping process.

If you get an offer for your diamond that is significantly less than the appraisal, this doesn’t mean that the company is trying to take advantage of you. In fact, it could mean that they have given you a generous appraisal to ensure you will be reimbursed fully if something goes wrong.

The only disadvantage to a high appraisal is that there is a higher fee to insure the product. At Farewell Diamond, we cover this insurance fee, so you never have to worry about assigning a value to your stone.