ANOTHER question...reselling of a stone

[ame]

My friend B is trying to convince her mom and aunt not to sell her late grandmother's stone, a .72 ct E/IF (EGL from 1979--but both appraisers said it was dead on and would likely receive the same grade from GIA), 61/61 stone and let her have it and possibly recut it through someone like BGD.

Personally that's what I would do, but her mom and aunt are thinking they will actually get at least $5000 for it since it's appraised for insurance at $9,000, and are excited at that idea of making money on it. I tried to explain that there is very little chance of that, since most vendors will be able to buy a new one with likely better cut quality for the same price from their suppliers/cutters, and would likely just go with their trusted suppliers over a random person off the street. A similar stone (even an F VVS) goes for around $4000-5000 new anyway. So far the only offer they've gotten was $2500 from a jeweler in Scottsdale, AZ.

I am hoping they will concede since B and her grandmother were pretty close and I think this would be nice to keep in the family, esp if it's recut and she can wear it and pass it on.

I also mentioned consigning it through someone like Pearlmans or GOG, but I think her mom and aunt are really wanting the top dollar possible.

 

[diamondseeker2006]

Well, the old cert is pretty meaningless and they'd need a new one from GIA preferably to even have a chance of selling it. The cut wouldn't be desirable here, obviously. The offer from the jeweler is probably what they could get for it. They are not being reasonable if they think they could get anything close to retail ($5000 or whatever). I certainly think it is sad they are even considering selling a family stone like that. It could probably be used as it is in a pendant or recut to improve it if it wouldn't lose much weight.

 

[TristanC]

Without knowing the financial circumstance, it would be hard to comment on whether it is the right or wrong move for them to sell it.

But the issue might resolve itself. If they want top dollar, they won't get it. So if they can't get anywhere near the value the are imagining, your friend might end up keeping it.

If she really likes the stone and wants it as a heirloom or a physical reminder of her grandma, she Should speak to both her mom and her aunt. She can always buy it off her mom for a price similar to what the jeweller offered. Sometimes even within a family, financial situations should make financial sense for multiple parties.

 

[denverappraiser]

An EGL/E/IF/0.72 will not be an easy item to sell under any circumstances but a 1979 pedigree will make it especially difficult. Several retail comps in the database here are being offered for between $5-6k with current paperwork and from real dealers. If the grading is off it drops considerably. I would be surprised if they can get anywhere near their asking price and operating from an ‘insurance’ value and then applying a formula is not a good way to set prices. Did they ask their appraiser about RESALE valuation and/or what is the most appropriate marketplace to sell it? It’s a big deal.

In terms of resale, it generally is NOT desirable to recut a stone, especially a 0.72 unless there's something wrong with it. It may be worth getting updated paperwork if it's truly an E/IF but even that is a slam dunk and it will depend on what her marketing plan is.

Consignment through a skilled retailer often *IS* top dollar, especially if the owner isn't a skilled merchant themselves but dealers don't always accept the deal you want and sometimes it takes a while to make a sale and get paid. Again, this would not be a particularly easy item to sell and there likely be some additional expenses.

 

[Enerchi]

Can B offer to purchase it from her mother/aunt? Go with an average of appraised pricing and then split the payment between each of the 2 'sellers'? That is a shame --- an heirloom that just isn't appreciated for what it is... sad.
Wonder how grandmother would feel about that?

 

[ame]

Thanks for the input guys, I really hope her mom and aunt realize that it's worth keeping in the family. I believe her aunt just threw out a ton of stuff in the house because it was easier than anyone going through and sorting it. She is not sentimental so no one else should be either apparently.

I did relay that getting it recerted by GIA is a good plan if they seriously want to sell it, but if she can get it for herself, I think a recut and setting it maybe in her own ring is a good way to keep it in the family and maximize it's beauty. The best deal they'll get is 2500, so if being greedy is more important (they do NOT need the money) than having someone in the family that might find it sentimental, that's what they'll do I am sure.

 

[denverappraiser]

Can B offer to purchase it from her mother/aunt? Go with an average of appraised pricing and then split the payment between each of the 2 'sellers'? That is a shame --- an heirloom that just isn't appreciated for what it is... sad.
Wonder how grandmother would feel about that?

Start by defining value. There are lots of different choices. They are not the same and they are not readily convertable. Most appraisals are defining value as the high estimated retail price for a new item of like kind and quality in the local marketplace. That simply doesn't apply to the situation at hand, and averaging several of these doesn't cause it to apply.

There are a couple of ways to set prices on this sort of thing when an insider is interested. A popular one that doesn't cost anything is to get bids from several different buyers and then let her match the highest bid received. How the sellers distribute the money or even if they want to sell at all is, of course, up to them.