Long Term Value of Proprietary Cut Stones
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by Lorelei » June 17th, 2007, 10:47 pm
Hi SP and welcome out of lurkdom!
Unfortunately, most diamonds will be worth a lot less 'the day after you drive them off the lot' in some cases. If you try to sell a diamond yourself, you are often lucky to get back 50% of what you paid - branded cut or no. The best way to guard against this as much as you can, is to buy from a vendor with a good trade up policy. As to the Solasfera, hopefully someone else can give you the answers you need 
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To early to know for certain what the future might bring to "branded" Diamonds... My sole opinion on the issue is: Some innovative Diamond Designs marketed by the already famous Jewelry houses have a chance to becoming a success future-wise.... as a Diamond cut or most likely set in its original jewelry pieces. I dont think standard round brilliant branding have the same potential!!! Just my opinion. |
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And I''d say very lucky at that. Buy what you like, because you like it. And if you think you''ll want a bigger/different stone someday, as Lorelei suggested, use a vendor with an upgrade policy. |
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This is part of the reason I went with a second hand Tiffany - I figure that if we decide to upgrade my ring will sell for close to what he paid, since that was about 40% below Tiffany''s retail. There is also a big secondary market for Tiffany branded jewelry esp. the classic solitaire. The suggestion to go somewhere with an upgrade policy is also a good one. The secondary market in other rings may not be as strong as some of the established design houses, like Cartier, etc. I think sometimes its more about the design house then the branded cut - but I don''t know much about the resale on those.
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I completely agree. I don''t think any of the proprietary cuts will retain and premium value on the merit of their cuts alone. Some may experience slightly better value retention if associated with a brand that has significant weight in the market, i.e. Tiffany, Cartier, etc. When picking an asscher cut diamond, I didn''t look at any proprietary cuts other than the Royal Asscher cut for this reason. |
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There are very few marketplaces where a consumer can sell a used Tiffany item and realize 60% of Tiffany’s retail prices for comparable new merchandise. Sales to or through most dealers will yield considerably less than that and direct sales through ebay/craigslist will usually result in less than making a deal with the best of the dealers. I don’t agree that the resale potential of branded goods vs. the original premium is any better than comparable unbranded goods that don’t have the premium in the first place although it is sometimes easier to find a customer. To be sure, the cost/resale ratio is better if you buy on the secondary market in the first place but it’s still not usually a very good investment. Buy what you love and don’t expect to every see your money again.
Neil Beaty GG(GIA) ICGA(AGS) NAJA Professional Appraisals in Denver
Neil Beaty GG(GIA) ICGA(AGS) NAJA
Independent Certified Gemologist Appraiser www.americangemregistry.com |
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ARE there any proprietary Asscher cuts OTHER than Royal Asscher? I''m not aware of any.
** DISCLAIMER: Advice from decodelighted is for entertainment purposes only. decodelighted is not a licensed therapist, lawyer or medical professional. The role of decodelighted may be played by a revolving panel of wise a**ses and/or fluffy & delightful pets. Do not taunt decodelighted. Letters to decodelighted become property of decodelighted and may be plastered on billboards or mailed directly to offensive people mentioned in the content of the letter. Privacy can be assured only through appropriate cash or cake tithes to decodelighted. decodelighted is watching you. Copyright 2011, decodelighted. **
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Wow... eye opening discussion... thanks everyone for your inputs. I basically agree that we will buy what we like, unfortunately for my pocketbook that might be Solasfera. So when I get the ring appraised should I expect the appraised value to be 50% of what I paid for it? Or am I confusing appraised value with resale/market value? I constantly hear of people''s rings appraising for more than what the bought it for. Maybe I need to scour eBay and Craiglist for ''Solasfera''
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Most appraisals are written for insurance purposes and the definition of value goes something like this:
“The appropriate funding required to replace the item with another new item of like kind and quality in a reasonable amount of time and in the most appropriate marketplace.” This definition will vary a bit from appraiser to appraiser and some won’t bother to define it at all.. Any statement of value MUST have an element of what it’s worth, to whom and under what conditions for it to be useful information. There are others. Some seem to be using a definition more like this: “The maximum amount that someone calling themselves a jeweler might be willing to charge for the item when they are under no requirement to actually find a customer or make a sale.” Resale value would look something like this: “The amount of money that a consumer could reasonably expect to realize when selling this item through a particular marketplace (ebay/craigslist, salvage dealer, pawnshop, auction, etc.) with an adequate market exposure and market appropriate advertising. Obviously this can produce a wildly different answer and both could be correct in their own way. An answer out of context where you have an ‘appraised value’ is useless because you have no way of understanding the question that was being answered. "What is this worth?" is simply not sufficient. Neil Beaty GG(GIA) ICGA(AGS) NAJA Professional Appraisals in Denver
Neil Beaty GG(GIA) ICGA(AGS) NAJA
Independent Certified Gemologist Appraiser www.americangemregistry.com |