Do they make sense for a diamond at this price???

[GettingEngaged]

I am buying a $3,000 diamond ring from a jeweler I am confident in. I have the GIA certificate and I have verified with my own eyes that the ID number on the certificate is the same as on the diamond (is that possible with a simple 10X magnification loupe?). Does it makes sense for me to pay $150 - $200 for an appraisal and pay for insurance on the diamond? It just seems like $3,000 doesn''t justify paying for those costs. What do you think?

 

[valeria101]

If you have no questions (of cut quality, descriptions suitable for fair replacement by insurer... or what not) left for the appraiser to answer and the extra paper is not needed for insurance... not sure what they can do more.

 

[Brian Knox]

Date: 1/13/2005 10:37:49 AM
Author:GettingEngaged
I am buying a $3,000 diamond ring from a jeweler I am confident in...

I have verified with my own eyes that the ID number on the certificate is the same as on the diamond (is that possible with a simple 10X magnification loupe?)

Yes, that is possible

Does it makes sense for me to pay $150 - $200 for an appraisal...

No, given your particulars.



and pay for insurance on the diamond?


Insurance is almost always a good idea.


...

Congratulations!

 

[longtimelurker]

Date: 1/13/2005 10:37:49 AM
Author:GettingEngaged
I am buying a $3,000 diamond ring from a jeweler I am confident in. I have the GIA certificate and I have verified with my own eyes that the ID number on the certificate is the same as on the diamond (is that possible with a simple 10X magnification loupe?). Does it makes sense for me to pay $150 - $200 for an appraisal and pay for insurance on the diamond? It just seems like $3,000 doesn''t justify paying for those costs. What do you think?

Insurance - would it be a hardship to replace the ring if something happened to it? That''s what insurance is for, and only you know your situation. My original e-ring was never insured, and it''s approx. that value now. But we also take collision off our cars when they drop below, say $5-8k in value.

 

[codex57]

Date: 1/13/2005 12:33:13 PM
Author: ltl

Date: 1/13/2005 10:37:49 AM

Insurance - would it be a hardship to replace the ring if something happened to it? That's what insurance is for, and only you know your situation. My original e-ring was never insured, and it's approx. that value now. But we also take collision off our cars when they drop below, say $5-8k in value.

Exactly. Do you think paying the premiums is going ot be worth it? Or do you think putting that money (for the premiums) aside every year would be a better bet b/c even if you hadn't saved up enough, you can afford to cover the difference? You can project into the future. For example, while this is what you can afford now, do you anticipate a raise in the (near) future which would make the ring more affordable later? Common example are students who propose while in school and then later get jobs which pay much more than the internships they had during school.

 

[claimsjeff]

Unlike a car...or unfortunately in some areas of the country homes....jewelry usually appreciates. Thus, you see a lot of conversation here why it''s such a great investment. I do not see that prices on platinum, gold, or even certain cuts of diamonds will diminish any time soon. Everyone has to examine the own comfort level on insurance. Are you able to absorb a loss of this item from a financial situation? Would you actually replace it if you were not insured? What is the loss of opportunity that you would have spent the $150/yr on in lieu of the insurance? Tough choices......

 

[fire&ice]

As far as the appraisal - it all boils down to your comfort level.

As far as insurance - it''s always prudent for your piece of mind. It''s not necessary. But, you have to ask yourself - are you willing to take the hit for the loss? I insure my rings. They are such tiny little things that can easily be lost or stolen.

 

[denverappraiser]

Appraisals:
The usual point of hiring an appraiser for this type of work is because you want a professional who works for YOU to answer some specific questions in order to assist you in making your purchase decision. If you have all the info you need or want and the seller will provide you with sufficient documentation to meet your and your insurance company’s requirements then no, you have no need an additional appraisal.
Insurance:
Your need for insurance will depend on your personal tolerance for risk and your assessment of those risks. The insurance companies are in the business of averaging out risk across a large number of customers and then calculating the premiums in a way that makes them a profit. In effect, buying a policy is betting against yourself. If you are a low risk customer (and you are able to reasonably make this determination) then buying insurance is a bad bet. If you are a high risk, than the company may be making the bad bet. For most people, the issue boils down to one of risk tolerance. You don’t want to insure against a loss where the penalty of the loss is low. If the value of the piece is what you consider ‘petty cash’ then you should not insure. If the value of the piece is such that replacing it will prove to be a hardship then insurance is usually a good idea.

If you decide to get insurance, make sure that the paperwork supplied by your jeweler contains an accurate enough description that the insurance company can make a proper replacement based entirely on the contents of the report. This report will effectively become a purchase order if you ever need to file a claim.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[GettingEngaged]

Okay, I think the insurance question is answered. As for the appraisal question, here''s where I stand:

The diamond I''m looking at is GIA certified, but has a "big certificate", so it doesn''t have any ID number inscribed (does that make sense to everybody?). I trust my jeweler, but should I still have the appraisal done just to make sure that this diamond is what the certifcate says it is. How can I word this in a contract with my jeweler (so that I can return it if it doesn''t match up)? How much does the appraisal cost? Can I have the appraisal done after the diamond is set in platinum? Where should I go in the Boston area to get the appraisal done? Thanks so much.