Common Myths About Jewelry Value: And How They Could Be Costing You Money (Part 1)

When it comes to jewelry, value can be a mysterious concept to wrap your mind around. There are so many factors to consider - sparkle, metal and gemstone specifications, craftsmanship, and the emotion behind the purchase. Many shoppers walk into a store or browse online assuming they already know what matters most, but the jewelry world is full of myths. Some come from generations past, others from online posts, and after a while it becomes hard to differentiate fact from fiction. If you don’t take the time to clear these up, you can easily end up overpaying, underestimating a piece you already own, or missing out on something that would have been perfect for you. In part 1 of this series, we’ll unpack some of the most common myths about jewelry value so you can shop with more confidence.

Myth #1: Bigger Diamonds Are Always More Valuable

One of the most common misconceptions in jewelry is the idea that carat weight alone determines value. It’s easy to look at a large diamond and assume that size automatically equals worth. In reality, carat weight is only one part of diamond pricing. Two diamonds with the same weight can have drastically different values depending on cut, color, and clarity.

A poorly cut diamond may weigh more but appear dull, while a smaller, well cut stone can have incredible brilliance and cost more. It’s also important to remember that carat weight measures weight, not physical size. Two diamonds can look different in diameter depending on how deep or shallow they are cut. A heavier diamond doesn’t always look larger.

This is why gemologists emphasize cut quality as the most important of the 4Cs. If you’ve ever seen a smaller diamond sparkle from across the room, you’ve already witnessed this myth fall apart.

Myth #2: 24 Karat Gold Is the Most Valuable Option for Jewelry

Many people assume that 24 karat gold (pure gold) makes it the most luxurious and valuable choice for jewelry. While pure gold is rich in color and beautiful, its softness makes it impractical for everyday wear, especially for rings, bracelets, and chains. 

That’s why 14K and 18K gold, which mix pure gold with sturdier metals, are the most popular choices in the United States. They offer a balance of richness, durability, and affordability.

When determining value, gold purity is only one factor. Craftsmanship, design, brand reputation, labor costs, and current metal pricing all affect a piece's worth. A beautifully crafted designer ring in 18 karat gold may be more valuable than a plain 24 karat band because craftsmanship adds value beyond purity. A lower karat piece in excellent condition is often the smarter long term investment, especially if it’s something you’ll actually wear.

Myth #3: A Jewelry Appraisal Reflects Market Value

Appraisals are a surprisingly misunderstood topic. Many people assume the number listed on an appraisal reflects what they could realistically sell the piece for. Most appraisals are written for insurance replacement purposes. That means the value listed is an estimate of what it would cost to replace the item, not what someone would pay for it..

Resale value is almost always lower than the appraisal amount because retail pricing includes marketing, labor, and profit margins that don’t translate to secondhand value. Appraisals also vary widely depending on the appraiser because some stay conservative, while others inflate numbers to make a customer feel they “got a deal.” 

If you want a realistic idea of resale value, you’ll need a fair-market appraisal or an offer from a reputable jeweler. Appraisals are incredibly useful for insurance, but they’re not the number to reference if you’re planning to sell.

Myth #4: Diamonds Always Hold Their Value

The belief that diamonds are guaranteed to hold value is a myth often fueled by marketing. While diamonds are durable and beautiful, there’s no promise you’ll get back what you paid when you resell one. Like cars, most diamonds lose some value once they leave the store because retail prices include markup. 

Some diamonds do hold their value better, like rare stones, antique cuts, or fancy color diamonds with strong demand. But for the average shopper, buying a diamond should be an emotional investment, not a financial one. You’re investing in beauty, symbolism, and something meant to last for generations. Diamonds endure, but their resale value depends on many factors. Anyone buying jewelry purely as an investment should speak with a professional first. 

Myth #5: Lab Grown Diamonds Have No Real Value

Lab grown diamonds have become extremely popular over the past decade, yet they remain misunderstood. Many shoppers confuse them with imitation stones and assume they’re worth very little because they’re created in a lab. This is false. Lab grown diamonds are chemically and visually identical to mined diamonds. They have grading reports, come in many colors and clarities, and sparkle exactly the same. 

It’s true that their resale value differs from natural diamonds. Because lab grown diamonds can be produced more easily than natural diamonds can be mined, they cost less. This makes them an excellent option for shoppers on a tighter budget who want more size or higher quality for their money. And although their resale tends to be lower, if you’re buying for emotional reasons and plan to keep the piece indefinitely, resale value becomes far less important. 

Final Thoughts

Jewelry value isn’t as straightforward as the myths make it seem. With marketing, assumptions, and advice passed down through generations, it’s easy to misunderstand what truly affects a piece’s worth. By taking the time to clear up these misconceptions, you can make more confident and informed decisions, whether you’re shopping for something new or evaluating a piece you already own.

These are some of the most common myths, but far from the only ones. In part 2 of this series, we’ll dive into even more misconceptions that often steer shoppers in the wrong direction.