anyone who has sold a diamond

[luvcushions]

Is it inevitable that you will lose money? If you bought a diamond for $6000 you will only get around $3000 when you sell it back? Is this just how the diamond market works? I'm looking to upgrade but that's just losing money!

 

[kenny]

That''s basically how it is unless you bought from a vendor with a trade up policy.

 

[Lorelei]

Date: 5/4/2010 12:39:19 AM
Author:luvcushions
Is it inevitable that you will lose money? If you bought a diamond for $6000 you will only get around $3000 when you sell it back? Is this just how the diamond market works? I''m looking to upgrade but that''s just losing money!

Hi luvcushions,

Yes, unfortunately it is usual to only recoup 30 - 50% of what you originally paid, and thats assuming the stone has a GIA or AGS report, if it has a report from another lab it could be even harder to sell and you could get less still. That is why upgrade policies are so popular as it lets the buyer upgrade and get in some cases the full value of their existing stone towards another diamond.

 

[denverappraiser]

Selling diamonds (and most other things for that matter) can be a tricky business and it depends a lot on both what you have and who you are planning on selling to. In some cases, selling for 50% is easy and in some it’s simply out of the question.

This article might have some useful information for you.


Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[HVVS]

If it''s not a fantastic cut, you could look into having it recut by Brian Gavin. That and and AGS report might make it easier to resell at a decent price. Not everyone is looking for a diamond with an upgrade policy. Someone might want it for a RHR or an e-ring and it might look like a good deal to them at 65% of the price at BDG or GOG or wherever. You have to have specs and good pictures to sell on the Internet. I have bought some decent rings on ebay but the fees to sell are rather high.

 

[denverappraiser]

HVVS,

It’s rarely worth the costs and risks for a recut if the objective is consumer resale. It’s easy to spend three to four hundred dollars or more each on the cutting, shipping and grading. If we’re talking about 1ct total weight SI stones, for example, there’s no chance that this is going to be recovered in the selling price. Even if there is a serious problem with the existing cutting, like if the stones are broken, it’s a tossup whether you are better off selling to a dealer and letting them have the headaches rather than trying to do it yourself.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[HVVS]

If you can't move it at all as-is,[/u] which may be the case with maul stones, it's worth recutting, IMO. Then, be prepared to sit on it a while, advertise it on every classifieds site, and relist it on ebay a few times until you find the right buyer. Yes, I have sense enough to realize that not every stone is a candidate for a recut and that I won't get BGD's price out of it when I try to resell it. If you're going to lose several thousand anyway, why worry much about risk.

I would say more, but the dealers pay the bills here.

 

[denverappraiser]

It’s a fair and important conversation but I agree we need to be careful about the forum rules. Yes, it’s a dealer sponsored forum but it’s really pretty open. You are less restricted than I am but if you avoid unfairly disparaging the dealers or the forum itself and don’t try to make a private deal for yourself out of it you should be fine. That said, I would love to hear your thoughts on how an individual should go about selling a stone or an unwanted piece of jewelry.

As a seller, the issue is how to get the most money for the least amount of risk, effort and expense, as quickly as possible. How these things balance against one another will vary from seller to seller along with their own requirements skills and luck. The usual consumer marketplaces (craigslist, ebay, nowidonowidont, etc.) are flooded with buyers who are looking for a ‘deal’ and they generally put higher value on size and low prices than most of the shoppers here do. At the same time, sellers in those markets tend to have a seriously inflated opinion of what they have and what they can expect. Reports from my clients and just watching what actually sells and for how much indicate that selling high end cutting for a premium price in those places is a difficult pitch. How things do on consignment has a lot to do with the style of the shop and it’s possible a better cut would help here but I would not delve into that without first discussing it with the proposed consignee and taking a hard cold look at the numbers. Recutting is a significant investment both in terms of money and risk and I do not recommend people delve into it lightly. In financial terms it rarely pays off.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver