Selling Diamond Rings - Dealers or Auctions?

Auctions versus Dealers
It is strange that many people automatically believe they will get a better price at auction, or that they will get a better buy at auction. While we would not argue with the theory behind auctions, that they achieve open market prices, we believe many people would get better deals selling or buying through a dealer.
Auction houses, like all other businesses face competition, and have seen expenses increase considerably in recent years. Auction houses have to spend money on producing catalogues and in advertising, otherwise they would attract no sellers and no buyers. Most auction houses now charge about 15% to 20% commission to the seller, and most charge 10% to 15% buyers premium also. There is VAT to pay on both lots of charges, which cannot usually be reclaimed. this means that the "spread" between prices the seller realises and the buyer pays can be between 23.5% (unusually low) and 41.12% (rather high), with most at about 30%. As an example, we recently purchased multiple lots in a (coin) auction. We paid about £95 each for the items, the vendor got about £70 each. If the vendor had approached us directly we would have been delighted to pay between £80 to £85 each, and he would have got paid immediately.

If you want to find the value of a diamond ring you own, please take a look at our page Value of My Diamond Ring?

We Buy Diamond Rings

We Buy Large Diamonds

We Buy Certificated Diamonds

Jewellery as an Investment
If you are surprised or dismayed by any of our comments or reckonings about diamond rings, and you were labouring under the misapprehension that diamond rings were an investment, then you may also wish to read our page on that topic as well.

What do you think?