Selling gemstones safely and at a fair price

Gemstones like diamonds and colored sapphires are not only prized for their beauty but also valued as long-term investments. Over time, many gemstones, especially high-quality stones, appreciate significantly, providing attractive returns to those who decide to sell. Among the most sought-after colored gemstones are the "Big Three": sapphire, ruby, and emerald, all of which are highly desirable due to their rarity, transparency, and durability.

For buyers, acquiring an exceptional gemstone often includes considering its potential resale value. Knowing how and where to sell a gemstone optimally can be crucial to realizing its full market potential. This guide offers insights and expert advice on how to maximize returns when selling gemstones, covering key factors that influence market demand and the best channels for resale.

‍

What classifies as a gem? What are the types of gemstones you can sell?

Gemstones are composed of rare, precious minerals, with varieties ranging from diamonds to the highly coveted "Big Three" colored gemstones: sapphire, ruby, and emerald. Additionally, there are numerous semi-precious stones that hold unique value due to attributes like rarity, hardness, color, clarity, refractive quality, and luster. The cutting and faceting of gemstones is key to showcasing their brilliance and beauty, with uncut gemstones generally holding less market appeal unless their quality is unsuitable for faceting.

The gemstone market consistently offers demand, with buyers seeking loose stones or crafted jewelry pieces, and sellers capitalizing on that interest. Commonly traded natural gemstones include Aquamarine, Diamond, Opal, Ruby, Sapphire, Emerald, Spinel, Tanzanite, Topaz, and Tourmaline. Each of these stones can yield different values based on factors like rarity, visual appeal, and buyer demand.

For gemstones, particularly rare and high-quality specimens, a well-executed cut can significantly boost their market value. Diamonds, for instance, are often the easiest to sell due to established grading standards and accessible reference prices that help estimate market value. However, for most other gemstones, determining true worth often requires specialized knowledge or an evaluation from a professional appraiser or gemologist.

‍

Natural vs. Artificial Gemstones

Natural gemstones are formed within the earth over millions of years, shaped by immense pressure and heat, and are classified as genuine gemstones. By contrast, synthetic gemstones are lab-created replicas made to mimic natural stones. Distinguishing between natural and synthetic stones, as well as assessing their value, requires expertise and specialized equipment. This is why consulting a certified jewelry appraiser or gemological laboratory is essential; relying on appearance alone can be misleading, as authentic verification is necessary for establishing a gemstone’s true nature.

The age of a gemstone or jewelry piece does not necessarily confirm its authenticity, as synthetic production methods for most gemstones have been available for decades. For example, the synthetic corundum process, developed by Auguste Verneuil in the late 19th century, allowed for the creation of artificial rubies and sapphires. By around 1910, the Verneuil process enabled mass production, leading to widespread availability of affordable red and blue stones (ruby and sapphire lookalikes) in various jewelry settings, such as rings, necklaces, and brooches.

While synthetic stones have made the appearance of precious gems more accessible, they hold no market value and generally cannot be resold. Only natural gemstones carry enduring value and potential for appreciation, as they have been treasured across cultures for thousands of years and continue to be highly sought after in global markets.

‍

Fake Gemstones: Imitations & Synthetics

Jewelry has often given its wearer a sense of social status, so it’s no surprise that natural gemstones were eventually replaced with more affordable minerals or artificial imitations. This made beautiful jewelry accessible to more people, even if it wasn’t obvious at first glance whether the stones were real or not. In 19th and 20th century costume jewelry, both natural and synthetic stones from the quartz family were popular, including purple amethyst, brown smoky quartz, yellow citrine, pale pink rose quartz, and clear rock crystal.

The history of gemstone imitations shows how jewelry trends and technology have changed over time. Diamonds, for example, were often replaced with other clear stones like rock crystal, leaded glass, or rhinestones. Since the mid-1950s, synthetic diamonds have been made that look almost identical to natural diamonds, though experts and gem labs can still tell them apart.

Colored stones were also commonly faked. For blue sapphires and rubies, synthetic stones created using the Verneuil flame-fusion process became popular, while glass imitations were also common. Emeralds were often replaced with green glass, peridot, or verdelite (a green tourmaline), and light blue aquamarine was sometimes swapped with blue spinel after WWII, though glass was also frequently used.

‍

‍

Why sell gemstones?

Gemstones are a highly sought-after commodity in global markets, valued for their rarity, beauty, and enduring appeal—whether as loose stones or integrated into high-end jewelry. Their intrinsic hardness and resilience further enhance their desirability, as gemstones are exceptionally durable and can retain value over long periods. For example, diamonds, sapphires, and rubies, due to their high hardness, maintain their color and clarity over time. Minor surface wear can be easily repolished, restoring the gemstone to its original brilliance and ensuring its appeal across generations.

Key stones such as diamonds, sapphires, rubies, and emeralds carry unique cultural and symbolic value, contributing to their demand in premium jewelry and their role in marking significant life events. As a result, these gemstones frequently serve as heirlooms or symbols in prestigious jewelry pieces. Diamonds, for instance, are especially prominent in engagement rings, making them a cornerstone of the luxury jewelry sector.

The reasons for selling a gemstone vary, from the need for liquidity to reallocating investments. In the B2B sector, gemstone trading is often driven by strategic financial decisions, with some businesses looking to sell high-quality stones to maximize profit potential. As gemstones continue to gain traction as investment assets, an increasing number of collectors and institutional investors are recognizing their potential for strong returns, similar to the art market. Investing in rare and high-grade gemstones offers a unique opportunity for capital growth, making this sector an appealing avenue for businesses focused on asset diversification and value preservation.

Do you need assistance in selling sapphires and rubies? Just send us an email and we will try to support you in the best possible way with our expertise and industry contacts.

‍

How to sell Gemstones

There are several effective channels for selling gemstones or gemstone jewelry, but it’s essential to begin with a credible appraisal. A trustworthy appraisal helps determine the true market value of the gemstone, which is essential for setting fair and competitive pricing. While some jewelers provide appraisals, an independent third-party appraisal from a certified gemologist or jewelry appraiser is often recommended. This impartial assessment provides a detailed analysis of the gemstone’s characteristics and value, making it a valuable tool when approaching potential buyers.

An independent appraisal will typically evaluate the “4 Cs”—Color, Clarity, Cut, and Carat weight—alongside other factors to produce a resale valuation. It’s important to note, however, that this value represents a retail price, often used for insurance purposes, rather than the price that may be offered by a buyer in the market. In trade transactions, buyers may not pay the full retail value, as they must consider resale margins. Instead, the goal of the appraisal is to obtain an accurate description of the gemstone’s quality and authenticity, answering essential questions like: Is the gemstone natural or synthetic? Has it undergone any treatments? What is its origin?

To further enhance the gemstone’s marketability, consider submitting it to a gemological laboratory for certification. This lab report provides an additional layer of verification, reinforcing buyer confidence and supporting the gemstone’s valuation.

‍

‍

Where can gems be sold

Finding the best place to sell gemstones can be challenging, as it requires a careful look at your options to maximize value while ensuring a smooth transaction. Consider these key channels for selling gemstones:

1. Online Marketplaces and Auctions: Platforms like eBay offer accessibility, making it easy to list gemstones for sale. However, without expert knowledge, there’s a risk of setting prices either too high or too low, which could lead to lost value or prolonged listings. For sellers without gemstone expertise, online sales may require additional support or a professional appraisal to set realistic expectations.

2. Local Jewelers and Gemstone Dealers: Visiting reputable jewelers, goldsmiths, or gemstone dealers is often a safer choice. After obtaining a trusted appraisal, approach several potential buyers to compare offers. Different dealers may assess the value of your gemstone differently, reflecting their specific market focus and profit margins, so shopping around for the best offer is worthwhile.

3. Traditional Auction Houses: High-quality and unique gemstones can be sold through established auction houses, such as Sotheby’s or Christie’s, or through regional auction houses specializing in jewelry and art. Auction houses often allow you to set a minimum price to protect your asset’s value, while also exposing your gemstone to collectors and investors willing to pay a premium.

4. Jewelry Stores and Galleries (Consignment Sales): Many jewelers, galleries, and goldsmiths offer consignment services, where they display your gemstone or jewelry piece in their stores and pay you once it sells. Although this option may require more time, it often yields higher returns due to their expertise in marketing and reaching interested buyers.

5. Avoiding Pawn Shops: While pawn shops offer quick transactions, they typically provide much lower prices due to the nature of their business model. For higher value gemstones, other options are likely to yield a far better return.

6. Working with Multiple Buyers: If you want to sell your gemstone quickly yet fairly, obtaining offers from several market participants—whether online, local dealers, or auction houses—will help you make the best decision. A recent, independent appraisal is essential in this process, helping you secure offers that reflect the gemstone’s true value.

By carefully choosing your selling method based on your gemstone’s quality, uniqueness, and your selling timeline, you can ensure that your gemstone achieves the highest possible market value.

‍

Selling Gemstones privately

While loose gemstones are commonly available for purchase on online platforms and gemstone exchanges, private sales are generally best suited for collector's stones or lower-value jewelry. For high-value gemstones, it is crucial to work with experts—such as auction houses, jewelers, goldsmiths, or gemstone dealers. These professionals understand the market, provide accurate appraisals, and ensure a secure and transparent transaction. When selling valuable gemstones, it’s worth doing your research and entrusting your stone to professionals who can help you achieve the best outcome.

‍

Selling through auction houses and gemstone dealers  

Key points of contact for selling gemstones include reputable auction houses, gemstone dealers, and jewelers. For stones set in jewelry, it's advisable to consult a jeweler or an auction house specializing in fine jewelry to accurately assess both the material value and the overall worth of the piece. When reselling through professionals, it’s important to factor in any associated costs. Many gemstone dealers also offer consignment sales, leveraging their extensive networks and expertise to connect sellers with potential buyers, ensuring a smooth and professional transaction.

‍

‍

What Prices to expect when Selling Gemstones

When purchasing gemstones, it’s important to understand the level of trade you're engaging in. Online auctions and auction houses facilitate private sales, while professionals such as jewelers, goldsmiths, and gemstone dealers offer wholesale pricing, meaning you may encounter a lower value. However, these experts provide accurate assessments and reliable value determinations—something that a private individual without gemstone knowledge cannot offer. This is why working with experienced professionals is crucial; they can guide you through the process and assist directly when it comes time to buy or sell.

‍

Price assessment/evaluation for set Gemstones in Jewelry

When evaluating the price of gemstones set in jewelry, several factors come into play, especially when considering resale value. These include the quality of the stone, its condition, the resale potential of the jewelry itself, and, in the case of vintage pieces, whether the original design has been altered. The overall impression of the piece—how the gemstone complements the jewelry and its appeal to potential buyers—also plays a crucial role.

If you're curious about the current value of your gemstone or jewelry, it's best to have it professionally appraised. While we don't offer this service, we can recommend trusted appraisers through our industry contacts, just send us an e-mail.  

‍

Prices of Loose Gemstones

When reselling loose gemstones, the price is primarily influenced by factors such as size, quality, and demand for the specific cut. For many gemstones and semi-precious stones, color and cut play a significant role, with trends and fashion cycles affecting their desirability. Unfortunately, this means that even beautiful stones can sometimes be difficult to sell.

However, diamonds and the three major colored gemstones—sapphire, ruby, and emerald—are an exception. Due to their rarity, these gemstones are always in demand, and selling them can be highly rewarding. As mentioned, obtaining an independent appraisal and valuation is crucial to ensuring the best possible outcome.

Rare gemstones remain valuable over time, and the market has shown that fine-quality stones typically appreciate in value year after year. For this reason, a professional assessment is essential to determine whether you own a hidden treasure or simply a beautiful stone with limited market value.

‍

Tax on selling Gems & Precious stones

A private seller typically sells gemstones at the net price, without VAT, as they are not required to charge VAT. In Germany, there is currently no VAT on the profit made from buying and selling gemstones, provided the gemstone has been owned for more than one year.

‍

‍

Requirement for selling Gemstones

The most important factor when purchasing gemstones is a certificate—typically a gemstone report or assessment from an independent gemological institute or laboratory. These documents confirm the authenticity of the gemstone and its natural origin. Additionally, they indicate whether the gemstone has undergone any treatments, as certain treatments are accepted by the market, while others must be disclosed and can significantly impact the stone’s nature and value.

For colored gemstones, certificates from Swiss institutions, such as the Swiss Foundation for Gemstone Research (SSEF), Swiss Gemlab (GRS), Gübelin Gem Lab, and C. Dunaigre Gem Lab, are highly regarded. Other reputable European labs include the Deutsche Stiftung Edelsteinforschung (DSEF) in Idar-Oberstein, the Antwerp Laboratory for Gemstone Testing (ALGT), and Bellerophon Gemlab in Paris. For diamonds, the Gemological Institute of America (GIA) certificates are internationally recognized for their credibility.

‍

Gemstone purchasing & consulting at Ceylons

We are a gemstone producer and wholesaler specializing in sapphires for business clients, including goldsmiths, studios, and jewelers. While we possess the expertise to evaluate gemstones, we do not buy stones ourselves. We have established a transparent and sustainable supply chain directly from Sri Lanka, which is highly valued by our customers. Although we do not engage in direct purchases, we can offer recommendations for trusted appraisers, institutes, laboratories, and other market participants.

The gemstone industry is tight-knit, and reputable suppliers and contacts are well-known to each other. Therefore, we invite you to reach out, and we will do our best to provide you with relevant recommendations and connect you with potential sellers.

We are also frequently asked if we offer gemstone seminars to share our knowledge. While we do not conduct direct sales to private customers, we can provide informational seminars. In certain cases, particularly for high-quality colored gemstones, we offer a commission-based model that benefits all parties involved: you as the seller, us as the reseller, and our global customer base—creating a win-win-win situation.

If you wish, simply contact us. We will be happy to support you with our expertise and our international network.

Send us an Inquiry or Book an Appointment

‍

FAQ

‍

When is a good time to sell gemstones?

It is best to sell when the demand for the gemstone in question is greatest. Commercial gemstones, such as colorless round cut diamonds, are very dependent on the economic context. Therefore, in times of financial crisis, it is better to keep these diamonds for a while. Colored diamonds or other rare gemstones such as certain types of emeralds, sapphires or rubies belong to a niche market and are therefore less affected by the economy. If you want to sell this type of gemstones, it is advisable to get assistance from an expert. Finally, sufficient knowledge of this niche market is necessary to determine the right time to sell your gemstone.

‍

Why should I sell my gemstones?

This is always a personal decision. If one cannot do anything with the loose gemstone, has no connection to it, a sale may be financially worthwhile. It is important to have the gemstone appraised by an expert to assign a realistic market value to the gemstone.  

‍

Is collecting gemstones illegal?

No, it is not illegal. As with art, stamps or jewelry, a gemstone is a commodity that can be collected indefinitely and is not subject to legal examination. 

‍

What are my gemstones worth?

This depends on the type of gemstone and the 4C’s of gemstone valuation. In addition to quality, rarity as well as supply and demand play a critical role in determining value.  

‍

Which stones are valuable?

Diamonds and colored gemstones (sapphire, ruby, emerald) are the most valuable. Gemstones, or semi-precious stones, have a lower value due to their rarity, hardness and longevity.  

‍

What makes gemstones so valuable?

They are a rare mineral found in nature. This cannot be produced at will. Depending on the quality of the gemstone, high values can be achieved, depending on supply and demand.  

‍

What are the most popular gemstones?

Diamonds and colored gemstones (sapphire, ruby, emerald) are the most popular worldwide because they are traditionally the rarest and have been traded and valued for thousands of years.  

‍

Which gemstones increase in value?

The value and its performance is measured by the rarity i.e., the rarity of the gemstone. Colored gemstones such as the sapphire, ruby and emerald show the greatest increases in value, even significantly higher than white diamonds.  

‍

Which is worth more: ruby or sapphire?

Rubies and sapphires are the same mineral, referred to as "corundum". Because the red variety, the ruby is rarer due to its chromium content, which accounts for the red coloration, a ruby of comparable size and quality is worth more than a sapphire.  

‍

Are gemstones a good investment?

Yes, gemstones can be a very lucrative investment. Provided one has some knowledge and good access to fine qualities a good purchase price. Gemstones as a rare and rare natural product are subject to a significantly increasing demand, which significantly increases their value from year to year.

‍

Where is the best place to sell gemstones?

After an appraisal, gemstones can best be sold at jewelers, goldsmiths, gemstone dealers or even auction houses, this depends greatly on the type of gemstone and its quality.  

‍

Who can appraise stones?

Gemstone and jewelry appraisers can estimate the resale value of a gemstone. This is not necessarily equal to the market price paid for it depending on the level of trade.  

‍

Do I have to be present at the appraisal?

No, a reputable gem lab or institute will examine the stone without the owner's presence. Smaller jewelry and gemstone appraisers may well take a "close look" at the gemstone in the owner's presence and do more advanced microscopic analysis. However, chemical analyses and spectroscopies then take place additionally in a commissioned laboratory.