Recycled diamonds are increasingly finding favor among customers. They are less expensive than new diamonds and are high on affordability.
Diamonds are forever. So much so that we can’t outlive them. Diamonds—those mighty stunning stones—have now re-emerged as investment opportunities for companies to introduce them back to the jewelry market.
Let’s have a look at the process behind buying recycled diamond jewelry.
What is a recycled diamond?
Diamond recycling is more of a recent phenomenon. But what does it mean? Mined diamonds last forever, so why not introduce them back to the market? That’s exactly what diamond recycling is all about. It’s becoming popular because recycling lowers the final cost of the jewelry item, like inexpensive diamond wedding rings.
The price of diamonds has been steadily rising for decades. With the internet boom, buyers now have better access to information. These two factors have contributed to the surge in demand for recycled diamonds. Some industry experts estimate that the share of recycled diamonds in the overall diamond market is as high as 10 percent. While this may dent the belief that diamonds are precious and rare, the fact that these stones can be sold back to the market, proves that they have an eternal value.
The financial necessity angle
Diamond recycling became the ‘in’ trend in the US after the 2008 financial meltdown and the following recession. The subprime housing crisis triggered the crash and many families were at the risk of losing their homes. Spending on non-necessary items plummeted, including diamond jewelry that fell sharply in 2009 and haven’t yet recovered even to the 2006 level.
The slowdown in the economy brought about sales of many luxury items like antiques, art, collectible cars and of course jewelry in large numbers. It was a double-edged sword. The market was witnessing an increased supply of diamonds, including inexpensive diamond wedding rings, at a time when both the price and demand were under a downward pressure.
Diamond sales in any country are closely linked to its financial health as well as the income of its citizens. With the economies of all countries connected to each other, the state of the global economy had a direct effect on retails sales of diamonds, as well as the income of those households that wanted to sell off their diamond jewelry in tough times.
Recycling has not yet reached a level that could fundamentally change the diamond jewelry industry. And it’s unlikely to be ever so. But it’s a clear indication that an increasing number of customers are looking at recycling as an option as a viable exit route for an expensive asset. This in turn means that recycling of diamonds, and inexpensive diamond wedding rings and similar jewelry are here to stay. The high price of new diamonds is often beyond the means of most people, especially young couples wanting to tie the knot are looking for recycled diamonds.
What’s the making process?
Old jewelry is sold off to high street jewelers, or to auctioneers, pawnbrokers or is used as pawn loans. The jewelry then undergoes inspection by experts and is valued and certified. Some diamonds from the jewelry are then removed and are cleaned professionally. Others are given a more modern cut. The diamond is then reintroduced in the diamond supply chain. Several leading diamond laboratories certify recycled diamonds. These diamonds are then sold individually to the public as inexpensive diamond wedding rings or are set in pendants, bracelets, or other pieces. They are also sold to diamond dealers and jewelry retailers.
Recycled diamond market share
The value of diamonds has remained unchanged for over three decades now. There have been sporadic hike in prices. According to market reports, recycled diamonds had around five percent market share among all jewelry sales in 2014-15. The overall market share for recycled diamonds has continued to grow, despite the steady recovery of the European and US economy. The estimated market value of recycled inexpensive diamond wedding rings and other items could be as high as $1 trillion.
Demand and extraction
Diamond jewelry prices are heading northwards because of the expensive manufacturing process. While technology has made it easier to identify the resources, demands has made extraction expensive. When demand exceeds supply, the price of products shoots up.
Choosing the best diamond recycling company
Finding a genuine company that buys or sells diamonds is hard to recommend. There are several online companies that have earned customer trust over the years and have a steady line of patrons. These resellers have bought thousands of diamonds and hire leading experts from the diamond evaluation industry. They have full accreditation from the relevant authorities and offer their customer the best possible value.
With an insight into the world of recycled diamonds, it’ll be wise to understand the origin of a particular piece. Many diamonds have interesting stories behind them that increases their value. You’re lucky if you have one such piece in your possession.
Lapiz Lazooli that offers contemporary jewelry designs and also accepts offers for custom jewelries.