2 questions about an engagement ring

[FutureWife]

My fiance recently bought at GIA certified diamond. According to the place he bought it from, it is .73 carats, round brilliant cut, VS2, G color. He paid around $4500.

When we had it appraised, we were told it was three quaters carat, round brilliant cut, VVS2, and F color. Initially the guy said it was $3500. Then he asked US if it was GIA certified, called up a friend of his who does appraisals too, then determined that it was $4995.

So my 2 questions are: 1) How much, if this guy was right in saying it was better clarity and color, should it REALLY be (is $4995 right?) and 2) should I even trust this guy with the appraisal-does it sound like he should have KNOWN it was a GIA cert. diamond????

I am planning to go for another appraisal. The funny thing is, I have gone to him before and he does have a good rep. Please let me know what you think. Thanks!!!

 

[Lanee]

This sounds so scary. Try to get Old Miner or Rick Sherwoods attention. I think they are both appraisers.

 

[DancinGirl]

Well, I think by the stats you got from a GIA certificate said .73, G, VS2 - then it should be correct. They don't make all that many mistakes. From what I gather - your Stone as graded by GIA is probably fair market of about $3200 - but give the guy some room for some profit - maybe $3500? I am assuming this is without a setting that he paid that much? If it is including a fancy setting, sure that price sounds reasonable for what he paid for it.

I had an .80ct, VS1, I color stone, AGS certified, and it was about $3100 by itself.

I would go by what the cert says - and from what it says - it looks like he paid a lot more for it than I think he should have.

Correct me if I am wrong, experts, but that's my 2 cents on it.

GOOD LUCK!

 

[Richard Sherwood]

Hi Future.

First off, it's not uncommon for an appraiser to grade a stone better than GIA does. One color grade and one clarity grade above on a stone which the GIA perhaps graded conservatively is fairly common.

In my opinion, GIA is usually dead-on in their grading, or leans toward the (often very) conservative side. (EGL-USA on the other hand, is often dead-on in their grading, or leans toward the liberal side.)

If you've got a stone that was very conservatively graded, then you might find appraisers grading it higher than GIA. That sounds like the case with your stone. If GIA graded it as a G/VS2, and the other appraiser graded it F/VVS, then chances are you've got a stone which has what the trade would call a "high" G color, and "high" VS2 grade.

So that's good. Now, about appraised values. I don't know what market level your appraiser was using, but most use average Retail Replacement Value for similar stones purchased at bricks & mortar stores in their geographical area.

Although this stone could be purchased for less through the internet, your fiancee paid a fairly "average" bricks & mortar store price of $4500 for the diamond, and I consider the $4995 to be much more fair as a Retail Replacement Value than the $3500 the appraiser initially quoted.

The $3500 he initially quoted is especially low if he thought it was an F/VVS2, and a very conservative appraisal value even for a G/VS2. It may be possible to purchase that stone in that price range through a specialized medium like the internet, but it's not the norm in the "outside world". And the "norm" is more appropriately used for Retail Replacement Value, unless specifically requested otherwise.

 

[Richard Sherwood]

-----------
Then he asked US if it was GIA certified...
does it sound like he should have KNOWN it was a GIA
cert. diamond????
-----------

There's no way to really know unless there's a GIA number inscribed on the girdle. Otherwise it looks like any other diamond.

I usually ask on higher quality stones though, because most high quality stones are certed by one lab or another. Then I explain the subjective nature of diamond grading, and tell them that I'll grade the stone out without looking at the cert to give them my un-influenced opinion of what the stone is. That way they can truly have the opinion of an "outside" expert on how conservatively or liberally (or dead-on) their stone was graded by the major lab.

Also, one other point. A stone that has been certified by the GIA will bring a premium on the market over a stone which hasn't been certified. Sometimes the difference can be dramatic, which you will see if you do a PriceScope search and compare EGL-GIA same grade stones. Non-certified stones will usually trade for even less.

 

[FutureWife]

Hi all! Thanks for your help!

Where would I find someone that appraises diamonds better than GIA? Is there a website where I could find people that do it?

I'm in Morris County, NJ so if anyone knows anywone

who does this, please let me know!

Thanks once again for the help!!!