appraising right after purchase

[allygirl]

This may sound very naive, but is EVERYONE taking the diamond to an appraiser before having it set in their new setting? I want to purchase a diamond and a setting from a local jeweler, but do I have to have it appraised after i purchase it from them before I have it set in the setting that I still have to order?

 

[kcoursolle]

Well, the advantage of having the stone appraised before having it set is that the gemologist can better evaluate the stone. Usually what most people do here is have it appraised twice. First you bring in your diamond and they tell you if it matches the certification, if the cut is good, etc. Then after having it set you bring it in again for an updated appraisal (usually this is cheaper than the first appraisal). They then make sure that it is the same diamond and check the quality of the setting and make sure there are not any problems. However, if you were very confident in your jeweler and the stone, you could bring it in after the stone is set.

 

[diamondseeker2006]

I think it totally depends on who you''re buying the diamond from and what certification it has. I see no reason whatsoever to have an AGS or GIA certified diamond reappraised when it is coming from a reputable vendor and you have good knowledge of the price of comparable stones so you don''t overpay. I am not having my diamond from Good Old Gold reappraised because I have a GIA cert on it plus a ton of identifying information such as scopes, helium scans, etc. And it will come with an insurance valuation. There are other vendors here as well that I wouldn''t see any need for an appraisal either.

 

[Richard Sherwood]

An appraisal by an independent appraiser is the only point in time where you have somebody that is employed on your behalf to tell you their expert and non-involved opinion of the diamond you're considering. Up to that point you are relying solely on information supplied by the seller, who has a vested interest in the sale.

Here's some reasons off the top of my head that you would have a diamond doublechecked by an independent before closing the deal:

1. Make sure it is the same diamond represented.

2. Make sure it hasn't been damaged since the certification.

3. Get the appraiser's opinion on whether the body color is a solid, borderline or high grade. For example, the price difference between a 2 carat H/VS2 and a 2 carat I/VS2 is approximately 18%. This translates to roughly $4,500. Would it influence your buying decision if an appraiser told you the diamond you are considering is a "low" or "borderline" H color, in their opinion?

4. Get the appraiser's opinion on whether the clarity is a solid, borderline or high grade. For example, the price difference between a 2 carat H/SI2 and a 2 carat H/I1 is approximately 46%. This translates to roughly $9,000. Would it influence your buying decision if an appraiser told you the diamond you are considering is a "low" or "borderline" SI2 clarity, in their opinion?

5. Get the appraiser's opinion on whether the cut is a true ideal make versus an high end premium make. For example, the price difference between a 2 carat ideal make H/VS2 and a 2 carat premium make H/VS2 is approximately 9%. This translates to roughly $1,800. Would it influence your buying decision if an appraiser told you the diamond you are considering is a "premium" make versus an ideal make, in their opinion?

The figures above are if any one characteristic is skewed. Imagine the effect if two (or God forbid all three) characteristics are "borderline". As a consumer, wouldn't you like to know that?

Who is going to tell it to you?

When is the best time to know it?

Is it better to know at point of purchase, or five years later when you end up having it independently appraised anyway, for insurance purposes?

Or, imagine this scenario. You pay top dollar for a borderline stone in blind trust without having it checked out by an expert independent appraiser. Five years later you go to sell the diamond, for one reason or another. The potential buyer is savvy, and cautious. He takes it to an expert appraiser who tells him it is a "borderline" graded stone, in one area or another. Nice, but borderline, in his opinion.

The potential buyer then comes back and informs you of this. He wants a substantial discount, or worse still doesn't want the stone at all because it doesn't measure up to his standards.

How are you going to feel then? Happy about having "saved" $175 by not getting an independent appraisal at point of purchase?

 

[ephemery1]

Date: 8/24/2006 5:51:06 PM
Author: kcoursolle
Well, the advantage of having the stone appraised before having it set is that the gemologist can better evaluate the stone. Usually what most people do here is have it appraised twice. First you bring in your diamond and they tell you if it matches the certification, if the cut is good, etc. Then after having it set you bring it in again for an updated appraisal (usually this is cheaper than the first appraisal). They then make sure that it is the same diamond and check the quality of the setting and make sure there are not any problems. However, if you were very confident in your jeweler and the stone, you could bring it in after the stone is set.

This is exactly what we did:

1) Had the stone sent directly to David Atlas in Philly, Chris checked it out and made sure it matched up to the cert and offered his opinion on the deal we were getting.
2) Had the stone set at a local B&M. They gave us an appraisal valuing the ring at $23,000, which was 3x what we paid so obviously inflated... but had it temporarily insured under that value.
3) Brought the stone back to Chris at Atlas yesterday, for a full appraisal of the total ring. Valued at $14,900 which means lower insurance rates than we were initially paying... and he explained that the wholesale cost of our ring should have been around $8500... more than we actually paid, so we were definitely happy!!

Pretty easy process (not to mention they''re awesome there!) and definitely worthwhile.