Appraisal questions about a loose diamond

[hworkman]

Hi. I had a question regarding an appraisal of a loose diamond i recently purchased. I purchased the diamond from WhiteFlash. The diamond is:
http://www.whiteflash.com/loose-diamonds/round-cut-loose-diamond-2982243.htm

Here's where my question lies. When I purchased the diamond, I had it appraised from an appraiser. She appraised the diamond "street value" around 7k to 7.5k and wholesale cost at around 5k to 5.2k . When I took the diamond to get set, the jewelry store appraised the diamond for 5.2k to 5.6k "street value". I wouldn't have minded if they were off by a few hundred, but over 2k difference makes me very confused. The diamond was listed for 6.2k Would someone be able to answer on why there was such a difference in the appraisals? And would you be able to tell me which one is more correct?


Thank you

Harold

 

[diamondseeker2006]

The amount you paid is the correct value. More than likely, they were using a standard chart of diamond prices and the lower value certainly did not take into consideration that it is a branded hearts and arrows cut. Just go price some Hearts on Fire H&A stones and you'll know what a great deal you got!

You really didn't need an appraisal on the loose stone other than perhaps to make sure the stone is the one in the report. You need one after the stone is set for insurance purposes. I let the appraiser know what I paid for stone and setting and make it clear you do not want an inflated value which will result in overpaying insurance premiums.

 

[hworkman]

They used I believe the Rappaport? They stated it would be 5.2k but as a premium cut, its 10% so it would be 5.6k. I said, but its a H&A and he said it didn't matter. That's what is considered as a premium cut.


The 2k difference really threw me off and really just wanted to know why there was such a discrepancy.

That's basically what I did. I got an appraisal to make sure the diamond was what WhiteFlash sold me, and get an idea if the price was good. After I took it to a jewelry store, I asked for an appraisal to get the ring insured. This was when he said the diamond was only 5.6k at most. I guess the good thing is the appraisal came out to exactly what i paid for with the setting and diamond.

 

[c-k]

They used I believe the Rappaport? They stated it would be 5.2k but as a premium cut, its 10% so it would be 5.6k. I said, but its a H&A and he said it didn't matter. That's what is considered as a premium cut.


The 2k difference really threw me off and really just wanted to know why there was such a discrepancy.

That's basically what I did. I got an appraisal to make sure the diamond was what WhiteFlash sold me, and get an idea if the price was good. After I took it to a jewelry store, I asked for an appraisal to get the ring insured. This was when he said the diamond was only 5.6k at most. I guess the good thing is the appraisal came out to exactly what i paid for with the setting and diamond.

And for insurance purpose that is what you would want to insure it for...what you paid for it. If next year the prices increase you can bump up your insurance. You know you purchased a Whiteflash H&A's and for replacement it does matter regardless what the appraiser said....by the way, nice diamond!

 

[smilligan]

Most appraisals are a scam. Jewelers give outrageous appraisal values because it makes people think that they got a great deal and the insurance companies love it because they get more money. In reality, the insurance is only going to cover the cost of the ring. Just because someone tells you a ring is worth $100,000, and you get a policy for that amount, doesn't mean that you are going to get a $100,000 payout.

ETA: That is why people recommend using independent appraisers that have no stake in the diamond business.

 

[denverappraiser]

Neither ‘street’ value or ‘wholesale’ are particularly well defined terms and I would first start by asking your appraiser what she meant by that. Wholesale is an especially tricky term in this business but I’m going to guess that Street means her estimate of what she thinks that stone would cost if you were to shop for one today. Meaning retail. An AGS/0.90/H/VS1/h&a is not an easy thing to find, as I’m sure you’ve discovered in your shopping exercise, and if the purpose of the appraisal was documentation for insurance replacement purposes, I think it’s unlikely your jeweler could find you one for significantly lower than what you found. They’re quoting what they think it would cost to find you something supposedly comparable. That’s the tricky part. What is comparable? The cheapest 0.90/H/VS1 will definitely be less expensive but that’ s the correct answer to the wrong question.

Go with your appraiser. That’s who you chose, that’s who you vetted, and she’s got no pony in this race. The appraiser at the jeweler is none of those things. At the same time, I would make her clear up what she means by her terms. If the jeweler wants to be bidding for your business, they're welcome to do so, but they shouldn't be calling it an appraisal and the definitely shouldn't be charging to do it.

 

[Modified Brilliant]

Beware of the inflated "feel good" appraisal that you might receive from the seller.

Serves no useful purpose. You might "feel good" at the time of purchase but the "good feeling" will wear off quickly.

Nothing new here, just a seasonal reminder to consumers as they shop for the holidays.