shape
carat
color
clarity

Buying scrap diamonds?

Xanthoria

Rough_Rock
Joined
Mar 7, 2011
Messages
45
In the past I chipped a diamond and the insurer paid out, then they auctioned the scrap diamond to recoup their loss, but let me buy the chipped diamond back for $1 more than the top bid - about 1/5 it’s retail value. I had it recut for very little and it came out looking better than before!

I’d buy a chipped diamond again. But I cannot find any scrap diamond auctions - how does one do that?
 

sledge

Ideal_Rock
Premium
Joined
Apr 23, 2018
Messages
5,206
I would speak with your insurance that guided you previously and ask them for some leads.

Also, I might note that while your experience turned out great, there may be scenarios where you lose more of the diamond and it wouldn't be such a positive experience.

So I would be cautiously optimistic and try to learn as much as you can about what types of damage, location, etc that makes it "easy money" vs a total headache.
 

Karl_K

Super_Ideal_Rock
Premium
Joined
Aug 4, 2008
Messages
11,522
As far as I know they are not open to the public.
In some state it would not be legal for the insurance company to sell them to consumers because they are salvage.
They could offer you yours because you were it's owner.

There are several different ways that insurance companies deal with damaged diamonds that varies company to company and state to state and there may be more ways.
1: and least likely for anything but very large diamonds is individual auction item.
2: sold as a lot with other stones at auction is common.
3: and what is very likely what happened.
They have a lists of approved jewelers.
They snap some pictures and gave them what info they have as to undamaged weight, color, and clarity, then weight whats left of the diamond and send it out to the approved list and they send back what they will pay for it.
 

sledge

Ideal_Rock
Premium
Joined
Apr 23, 2018
Messages
5,206
I’m a little surprised they limit their buyer pool. I figured they would see a dollar as a dollar, regardless who it came from but maybe they are hedging against a potential lawsuit from an uninformed buyer.

Of course, it’s easy to start a business. I had some friends do this so they could access the high powered chemicals to treat their yards and also to gain better discounts with various landscaping businesses when buying their plants, trees, etc.

Any other stipulations you know about? Established place of business? Annualized volume requirements? Licensing, etc?
 

Karl_K

Super_Ideal_Rock
Premium
Joined
Aug 4, 2008
Messages
11,522
Any other stipulations you know about? Established place of business? Annualized volume requirements? Licensing, etc?
Again it will vary company to company and state to state.
Licensed and bonded and insured would likely be a min. is my guess.
Some states you have to have a special license to buy salvage from an insurance company. .
 

Karl_K

Super_Ideal_Rock
Premium
Joined
Aug 4, 2008
Messages
11,522
I’m a little surprised they limit their buyer pool. I figured they would see a dollar as a dollar, regardless who it came from but maybe they are hedging against a potential lawsuit from an uninformed buyer.
The faster the can turn them into cash the better they like it.
They are not in the business of holding diamonds.
They also hate lawsuits so that is a factor plus state laws.
 

sledge

Ideal_Rock
Premium
Joined
Apr 23, 2018
Messages
5,206
Thanks @Karl_K, much appreciated.
 

Ibrakeforpossums

Brilliant_Rock
Joined
Mar 21, 2019
Messages
565
Again it will vary company to company and state to state.
Licensed and bonded and insured would likely be a min. is my guess.
Some states you have to have a special license to buy salvage from an insurance company. .

Last Friday I learned that Jewelers Mutual employees can buy salvage. Obviously I have a new career goal.
 

Ibrakeforpossums

Brilliant_Rock
Joined
Mar 21, 2019
Messages
565
Headquarters in my zip code. 54956. Well-respected locally and they have a beautiful gallery of gems and minerals on the main floor, open to the public.
The employee I spoke with told me she's allergic to jewelry - even 24 K. but her husband has a bunch of Rolex watches.
 

Garry H (Cut Nut)

Super_Ideal_Rock
Trade
Joined
Aug 15, 2000
Messages
16,543
We represent Robert Procop in Australia, jeweler to stars and world leaders etc.
He started in the trinket trade working for his uncles pawn broker biz and graduated to a cutter of diamonds and gems. He went around LA's pawn brokers buying up chipped gems and recutting them.
 

Daisys and Diamonds

Super_Ideal_Rock
Joined
Apr 30, 2019
Messages
11,887
Not exactly a chipped diamond but i bought two rings on trade me (NZ eBay) that had had an insurence claim paid out on them but they were then recovered
They were sold on behalf of the insurance comoany by a 3rd party
I was very happy with the price
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
8,954
I deal with a big insurance company quite a bit on this. In my case, it’s a closed auction system. The company sends me the stone(s) and I write up a report. There are a dozen or so buyers who read it and bid on the stones. They sell to the highest bidder. It’s all designed to move FAST. The insured gets the right of refusal to snap it up at the last moment but that’s the only member of the public who ever sees the deal. Company employees do not get to bid. Neither do I.
 
Be a part of the community It's free, join today!
    Jewels of the Week: July 2021
    Jewels of the Week: July 2021
    Throwback Thursdays: July 2021
    Throwback Thursdays: July 2021
    August Birthstone 2021 - Peridot
    August Birthstone 2021 - Peridot

Holloway Cut Advisor



Top