Any issues with selling diamond on consignment?

[wcduke]

Hello All!
I am thinking of selling my loose diamond on consignment with a local jeweler here in my area. I've never done business with the jewler before, but I do know that this same jewler has been at the same location for 20-25 years now. My loose stone is round brilliant, .91 carat, VS1, H color. I have a GIA certificate and an appraisal report.

Over the phone, the owner has told me that he will give me $3000 if/when the diamond sells in his store. I've never done anything like this before, and I'm wondering if this is a safe practice for me. Are there concerns I should have so I don't get ripped off? What should I ask for in writing from him? Has anyone else here done this? What are your experiences?

I'm usually a cautious, worry-wart which is why I am posting and asking here. Please someone warn me of any potential troubles with this, or tell me that all is fine and I need not worry if I do decide to do this.

Thank you all very much!

 

[YoungPapa]

wcduke,

The problem isn''t with the jeweler stealing your diamond. The problem is with the diamond ever selling.

A well cut diamond of that size and proportion with a GIA report would probably sell for about $3500-$4000 over the internet. If the jeweler is limiting his profit to $500 or does a brisk business in engagement rings then he might find a buyer for in as little as the next few weeks.

If, however, the jeweler tries selling the diamond for $5000 and/or has limited leads then your diamond could sit for months and months and months with no buyer.

The consignment might be okay, but don''t limit your options. Try listing the diamond in online or local classifieds to see if you can find a buyer yourself in less time. You''re much more likely to be successful with a private sale if the diamond has a major lab report and some type of insurance appraisal, fyi.

 

[hoorray]

I''ve never sold jewelry on consignment, but I''ve sold art on consignment. Jim is right. Your first question is what is he going to ask for the stone. If he doesn''t price it reasonably, it will never sell. Also ask how he will try to sell it. If it sits in his vault, and he never brings it out since he has his own stones to sell first, it will never sell.

As far as a contract goes, I don''t know. I would know how to identify your stone so that if it doesn''t sell and you go to get it back, you know it is the same stone. (That''s just good practice for ever leaving jewelery with anyone.) Looking through a loop and identifying the inclusions is the simplist way.....

Good luck!

 

[wcduke]

Anyone else w/ any thoughts?