Recycled diamonds are diamonds that have been polished and set into jewelry, then removed and possibly re-cut before sale back into the diamond industry. This sector accounts for 5%–10% of market supply. Many jewelers typically offer to repurchase diamonds at a 15–20% discount relative to their selling price. Whether it is releasing capital to re-invest in more liquid stock, or generating greater margin on re-purchased diamond jewelry, repurchasing diamonds is part of an ongoing strategy for many members of the jewelry industry. In 2012, Tacy Ltd. stated that it expected $1 billion worth of recycled diamonds to be put back into the market. In 2013, its estimation was $1.2 billion. The market Diamonds of a certain size, generally half a carat and above, are traded and processed by the industry individually. Each has unique attributes and a corresponding unique market place. Diamonds of this size, whether recycled or not, have a similar market price. It is impossible to tell the difference between a recycled one-carat diamond (as long as it is undamaged) and a "freshly mined" one-carat diamond with the same characteristics, and the market does not differentiate between them. Diamonds of smaller sizes are traded in parcels of similar stones, called 'melee', after the French word for mix. Generally diamonds of exactly similar size, cut, shape, color and clarity are used in a single piece of diamond jewelry. If not, the stones would not match and the piece would not sell. Small recycled diamonds are treated differently from large individual stones. A single small diamond has limited value by itself. It is only of use if it can be matched with other similar diamonds, reset into jewelry and sold to a customer, thereby creating value. Small recycled diamonds need to be sorted, have their cut modified and resold to manufacturers in large parcels to allow them to pick matching stones to set in jewelry. See also Alternative investment Gold as an investment Inflation hedge List of diamonds Palladium as an investment Platinum as an investment Silver as an investment References External links PriceScope Diamond Price Chart, 1 Aug 2012 update. Diamond Commodities used as an investment