You've probably seen ads for Cash for Gold USA, now they are getting into the diamond business. In a press release Norman Schneider, president of Cash for Gold USA, said that the company created the new site, Cash for Diamonds USA
after increasing questions from their customers about selling diamonds. The recession has already prompted many people to raid their jewelry boxes looking for a little financial relief and jewelry stores and pawnbrokers are seeing brisk business.
Cash for Diamonds USA says that they will purchase diamonds of any shape, color, cut, clarity or carat size, either loose or set in a piece of jewelry. The new site offers information on diamonds and promises potential sellers free FedEx shipping that is pre-insured up to $1,000. But are you better off going to a jeweler? The Cash for Diamonds website says that "the market prices for diamonds have remained excellent despite our current economic downturn. " This is not exactly true. While the price of gold has risen, the price of diamonds has dropped dramatically
over the past year. There's a reason why thousands of diamond polishers in Surat, India are out of work and diamond dealers in Antwerp are closing their doors, the diamond industry has taken tremendous hits over the past year. But leaving the website's optimistic view of the situation aside, the website does say that appraisals are performed only by GIA (Gem Institute of America) appraisers and it does include the necessary cautions that both the price originally paid and the insurance appraisal number will likely be significantly higher than the amount that Cash for Diamonds will assess.
You will still be likely better off taking your pieces to a local jeweler for several reasons. One of which is that you get to have a bit more control, the jeweler can tell you what they will pay and then you have the option of deciding to sell or not. Also some jewelers offer arrangements that give you a higher price on your old pieces if you are going to buy something in the store (similar to trading in a car when you buy a new one). Also if you have pieces that are signed, vintage or designer, they may be worth more than the simple value of their stones and settings. Cash for Diamonds USA will likely attract a fair share of those looking to unload a small piece or two in a hurry but sellers might want to think twice before packing up anything truly valuable in one of their FedEx packs.
[via National Jeweler