Buying Uncertified Diamonds - Reselling with Cert

[Tim R]

Hey guys!

First post on here, so take it easy on me if this has already been discussed to death.

I’ve become pretty proficient with a loupe. My question will probably get a slew of comments telling me this is an insane idea, but I’d rather get an honest answer than a positive one.

Say I bought a 1ct round uncertified diamond from a wholesaler that offers a 60-day return policy. If I check it myself with a loupe and think it’s worth the investment, and send it to GIA for certification, could I expect to make a profit by reselling a certified, high-quality, earth-dug, loose diamond with a GIA certificate verifying its authenticity and quality?

Let’s assume that I bought this uncertified diamond for around 40% the typical market value of a certified diamond of similar size, color, clarity, and cut.

Let me know what you think, and feel free to rip me apart. I don’t offend easily and like I said, brutal honesty is preferred.

Thanks everyone!
Tim

 

[kenny]

You have a very low chance of success, likely zero. Sorry.

1. You are not in the business so you cannot buy at 'wholesale' prices. Anyone who claims they'll sell to a private individual at wholesale prices is lying. Doing business with a liar is not a good start.

2. People who sell diamonds for a living KNOW exactly what they have. The slimeball sellers hope you don't. Diamonds are offered for sale with no grading report for a good reason: to ripoff a gullible buyer.

3. Two diamonds side by side that look the same to most of us can be worth HUGELY different prices because of tiny differences in color and clarity. Next you and I probably can't detect clarity enhancement or the difference between a natural/mined diamond and one created in a lab.

4. Diamonds are not a commodity like gold which you can buy OR sell at one single universally-agreed-to price (plus a small commission). We civilians take up to 50% loss when we try to sell diamonds we bought from a retailer. Diamonds would need to double in value to just break even.

5. P.T. Barnum said, "There's a sucker born every minute." ... Now that you know this drop the idea and buy something with better odds, a lottery ticket.

 

[Tim R]

Hahaha. Brutal honesty is what I asked for! Thanks, brother. Solid points.

 

[kenny]

Hahaha. Brutal honesty is what I asked for! Thanks, brother. Solid points.

Thanks, nothing!
You can send half of the millions of dollars I saved you to me ... care of Pricescope.

 

[luv2sparkle]

If the stone was worth certifying they would have done so. They obviously thought they could get a better price without a cert. They can say whatever they want about it and no one can dispute it.

 

[Rockdiamond]

Cutter thinks stone is a J color- sends to GIA, who give it an L.
Cutter rips up GIA report, now we have an "uncertified" diamond- and the cutter wants the price of a J

Any one carat diamond worth anything substantial will have already been to the lab......

 

[Bron357]

The only way you might “score” a bargain is by scouring pawnshops, Gumtree, Craigslist and stumbling across someone selling great aunts old ring or similiar with an uncertified diamond in it because no one did that back then, and so far no one else has noticed this bargain.
Then if you have a heap of knowledge and experience you might be able to reasonable assess the size, colour and clarity and determine the price asked is less than it’s worth.
As for then onselling, who buys a diamond of some “random guy” (you) even with a GIA certificate? 99% of purchased diamonds come from businesses who specialize in diamond trading, who have a rock solid reputation and an excellent “return if you don’t like” policy.
You (or any other individual) can’t match the big guy in the business unfortunately.
The only time such bargain shopping is worthwhile is if the diamond (or ring) is for you to keep. Then yes, you can grab yourself a great buy, but later on if you want to sell it, you’re still in the same boat.