If you need to resell your Moissanite Engagement ring, or wedding set, at some point, what kind of resale value can you expect? Many believe that diamonds appreciate in value over time, but do they? And what about Moissanite?
Will Moissanite go up in value? Moissanite is not likely to increase in value, but neither is a typical diamond. Both generally resell at a substantial loss-especially if they’re resold soon after being purchased. Because Moissanite is much less expensive, the total risk of loss is often lower than it is with a more expensive diamond.
In the paragraphs that follow, I’ll help you understand the factors that influence Moissanite resale value, and what you can reasonably expect to get from your Moissy when you go to sell.
Can you Resell a Moissanite Ring?
Things don’t always go as planned. A ring that you thought you’d keep forever sometimes needs to be resold. Relationships sometimes end, financial circumstances change, or people decide to upgrade and sell off their old ring to help cover the cost of the new one.
Some people claim that diamond simulant rings, including Moissanite, have no value. They imply that diamonds are the only stones that really hold value, and can be resold. It’s a ridiculous claim that has absolutely no grounding in reality.
“The cubic zirconia gemstone—just like other diamond simulants—carries no market value. A diamond, on the other hand, does retain some of its market value, although we are upfront with readers that a diamond isn’t an investment.” -Michael Fried
I agree that diamonds aren’t investments, but keep reading—I’ll debunk every other aspect of this type of claim below.
To start with, here’s the obvious reality…many couples ARE buying Moissanite Engagement Rings, Wedding Bands, Anniversary Rings, and Promise Rings. Some of those couples that are interested in buying a brand new Moissanite Ring, would, of course, ALSO be interested in saving money by buying a similar used ring. How significant that discount needs to be, depends on several factors. Makes sense doesn’t it? How could a ring have NO resale value, if people in your area are paying retail to buy it new? You absolutely CAN resell Moissanite!
Engagement Rings are Not (Financial) Investments
Hopefully, you aren’t buying an engagement ring with the thought of reselling it in the future for a profit. Rings that are given to represent commitment to each other, or celebrate relationship milestones, are relationship investments, not financial ones. There are MUCH better places to invest your money for a financial return.
Engagement rings are TERRIBLE investments because the stones rarely appreciate, but also because no one is going to want to sell a ring that has heavy sentimental value…and they would probably be hurt by the suggestion that the ring should be sold. Engagement rings are a GREAT way to lose money, but I think they’re still worth buying, as long as you look at them as an expense (an object that you’re simply buying to enjoy and consume), rather than as an investment. That shift in mindset will lead to much better decisions around exactly what you buy to commemorate your engagement, marriage, and other relationship milestones.
How Much Can You Expect to Get if You Resell
You will need to offer a discount, over current retail prices, in order to sell a used engagement ring or wedding set. Why would anyone pay a stranger the same amount that the local jeweler would charge for a given ring? The jeweler will, of course, be more trusted. They probably also offer small perks like free cleanings, free resizing, or free repair for a period of time. The buyer won’t get any of those things if they buy from you instead. You’re essentially discounting to compensate for all those factors and the perception of higher risk.
Generally speaking, you’ll need to sell used moissanite rings at a 30% to 50% discount. I did a little research on used Moissanite engagement rings that are currently listed for sale through a local classifieds site, to see if I could find some current real-world examples. There were 3 listings that referenced the original purchase price of the ring (a fourth moissanite ring didn’t mention that information).
|Used Rings For Sale:||Original Price:||Asking:||Total Loss in $:||Discount %:|
|Moissanite Ring #1||$1,005||$700||$305||30%|
|Moissanite Ring #2||$1,200||$900||$300||25%|
|Moissanite Ring #3||$1,200||$790||$410||34%|
As you can see, the average used Moissanite Engagement ring is selling at a 31% discount over their original purchase price. This represents an average loss of $338 for each ring.
Moissanite vs Diamond Resale Price Comparison
Diamond snobs often pretend that diamonds, in general, go up in value. They promote this lie HEAVILY. It’s a lie for several reasons that I’ll both expose and PROVE below. Financially, you’re MUCH safer buying Moissanite if you’re worried about the potential for losing money, should you need to resell at some point. That statement is 180º OPPOSITE what everyone else seems to be saying, but it’s the truth, and again, I’ll back up the claim with evidence below.
Rather than just talking about this on a conceptual level, I spent time looking at rings that are being resold on a local online classifieds website that’s similar to Craigslist. There were A LOT of diamond engagement rings being resold. Here’s what I found…
Real Examples of Diamond Resale Value
|Used Rings For Sale:||Original Price:||Asking:||Total Loss in $:||Discount %:|
|Diamond Ring #1||$1,275||$795||$480||38%|
|Diamond Ring #2||$1,700||$1,100||$600||35%|
|Diamond Ring #3||$1,999||$400||$1,599||80%|
|Diamond Ring #4||$2,200||$1,550||$650||30%|
|Diamond Ring #5||$2,200||$700||$1,500||68%|
|Diamond Ring #6||$4,000||$800||$3,200||80%|
|Diamond Ring #7||$4,600||$1,500||$3,100||67%|
|Diamond Ring #8||$5,000||$2,250||$2,750||55%|
|Diamond Ring #9||$6,700||$3,000||$3,700||55%|
|Diamond Ring #10||$6,828||$3,000||$3,828||56%|
|Diamond Ring #11||$7,200||$3,000||$4,200||58%|
|Diamond Ring #12||$7,600||3,000||$4,600||61%|
|Diamond Ring #13||$18,000||$6,499||$11,501||64%|
The average person selling a used diamond engagement ring is willing to accept at least a 58% discount! I say ‘at least,’ because they may end up accepting something even lower than their asking price in order to get the ring sold. NONE of these diamonds have appreciated in value. The rings that I evaluated varied in terms of brand name, their size, cut, color, and clarity. They also varied terms of WHEN they were purchased. Some were only purchased a few months ago. You might EXPECT people to take a loss on those—after all, they haven’t been given time to appreciate, right? What about rings that were purchased several years ago (surely they’ve appreciated)?
I found an interesting listing for a diamond wedding set. It was purchased in 2014 for $7,600. It’s a 1 carat solitaire on 14 Kt White Gold it also features an anniversary band with 13 small diamonds. The asking price is $3,000! The ring has had 5 years to APPRECIATE in value, but they’re trying to unload the thing at a 61% loss, walking away from $4,800!
When the claim is made that diamonds hold their value, insinuating that the diamond in your engagement ring is actually an asset, you’re being lied to. It’s a self-serving lie that could lead you to spend far more on your ring that you can afford to lose if you have to resell at the average .42 cents on the dollar!
The Moissanite rings that I found listings for, were all between 1 and 2 carats. The average loss anticipated on those rings, based on asking price, was $338. A brand new 1-2 carat diamond ring would cost roughly $4,000 to $15,000. Based on my findings, you could expect to lose AT LEAST 58% of that ‘investment,’ on average, if you resell the ring. That means that you would lose $2,300 to $8,700 in total. Moissanite is a MUCH safer bet—if you’re worried about the possibility of reselling your ring at some point in the future! It’s true, that you would still take a loss on the moissanite ring, but it would likely only be 4% to 15 % of the loss that you would realize on a diamond of the same size.
The Reliability of Your Moissanite Appraisal
Jewelry appraisals can’t be taken very seriously. If your ring appraised for $3,000, for example, that doesn’t mean that you’ll actually be able to sell it for $3,000. The appraised value is more commonly an estimate of what it would cost to replace your ring…not someone else would ACTUALLY be willing to pay you for it. Since no one wants to pay retail for a used ring, the true value of your ring (what you could truly sell it for) is typically substantially less than the appraised value.
While searching a local site for the rings referenced above, I came across a 2.1 ctw princess cut diamond ring that’s sitting on a 14kt gold setting. The listing mentioned that the ring appraised for more than $10,000 (they displayed a copy of the appraisal report in the listing), but they were asking just $2,495—a 75% ($7,505) discount! Why would they be willing to sell for so little if their ring was WORTH $10,000? There’s only one reason—the ring is only worth about $2,500 in real-world value.
I also saw the following listing…
“We got it appraised by diamonds direct. They said it’s [worth] about $2,200. We are asking $800 obo.”
Don’t put much trust or confidence in appraisals. They’re frequently inflated. It’s rarely worth your money to pay for one.
The Role of Scarcity on Value
What drives prices up? Scarcity (when demand outpaces supply)! Lab created Moissanite can be produced as quickly as needed to meet demand, so there’s little opportunity for true scarcity.
Everyone pretends that diamonds are scarce, and that this scarcity justifies the extreme price demanded for them, but it’s 100% FAKE scarcity that the diamond industry orchestrates to keep their prices high.
Far more diamonds are mined each year than get are released into the diamond supply. Supply is carefully controlled to keep up the impression of scarcity and value. Without a coordinated and controlled environment, diamonds would cost a fraction of what they do today. In 2015, DeBeers indicated that their costs to bring diamonds to market had come down to just $104 per carat on average! With costs that low, it’s clear that DeBeers has a HUGE markup. Open market competition, real competition, would naturally lead to lower prices. That would be good for consumers, but bad for the mined diamond industry.
I mention all this only because diamond peddlers talk about diamonds as if they’re intrinsically valuable—far more valuable than other stones. In reality, other types of stones just don’t have similar collusion happening, so it’s honestly an ‘apples and oranges’ comparison. To learn a little more about the roots of the scarcity deception, check out this article which I recently posted.
Moissanite isn’t going to go up in value, but neither will diamond. Moissanite is a much safer stone to invest in though. It’s both less expensive to buy and tends to require less significant discounting to resell. It’s also an incredibly hard stone (second only to diamond on the Mohs Scale of Hardness) that looks almost identical to diamond.
If you find yourself needing to resell your ring in the future, you’ll likely only need to discount your Moissanite ring by about 30%, but a diamond ring would likely need to be discounted by at least 58% in order to move it.