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Drew Brees claims jeweler scammed him out of $9M.

Discussion in 'RockyTalky' started by denverappraiser, Apr 3, 2018.

  1. sep004
    Rough_Rock

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    by sep004 » Jun 7, 2019
    Yes! He is the best! I've used him for 12 years.
     
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  2. Bron357
    Ideal_Rock

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    by Bron357 » Jun 8, 2019
    I think the saying is “a fool and his money are soon parted”.
    The jeweller was wrong to misrepresent the items of jewellery as “investments” and the buyer was wrong not to seek an independent/ separate appraisal prior to purchase. A seller can ask any price they like, ultimately it’s the buyers responsibility to evaluate the appropriateness of said price.
    Few investments are “guaranteed”, everyone should know that. I can assure you when someone is expecting a 10% return and they end up with 15%, they don’t rush back and say “here is the extra 5% back I can’t accept it”
     
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  3. lovedogs
    Ideal_Rock

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    by lovedogs » Jun 8, 2019
    Yup, 2 different stores, about a block (or less) apart. I've just been window shopping in both :)
     
  4. Wink
    Ideal_Rock
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    by Wink » Jun 8, 2019
    When I opened my store back in 1979 there were a LOT of people selling investment diamonds, often at more than retail in my store. I was approached by several investment sellers who did not understand why I would not rep their programs as I was missing out on big bucks. I was smart enough to figure out I would also be getting some big headaches to go with those big bucks.

    Instead, I put ink to paper and developed an investment program of my own. In it I explained that I would sell investment packages for a minimum of $50,000 at a 10% margin, and I would assist in selling the diamonds to someone in the trade when they wanted out. I also explained that I would be selling the diamonds to a wholesaler for at least 15% less than whatever wholesale was at that time, and that I would be taking a 10% cut of what ever I received.

    So, if I sold a package for $55,000 with my 10% and you wanted to sell when the wholesale value was $100,000, then I would expect to sell that package to a wholesaler for $85,000 and keep $8,500 for myself, so you would receive $76,500. That would be a profit of 21,500 from your investment of $55,000 assuming prices doubled.

    Once a prospective investor read that, it was very clear that diamonds were not a viable investment vehicle for people outside of the trade.

    Ironically, the diamonds that I sold, at retail, to my clients from back then are worth many times more than when I sold them. I have bought a few of them back from estates, but most times when I see an heir it is to express my sorrow for their loss and often to help them repurpose the jewelry for something that the younger generation now wants to wear. That is always a much more joyous event than buying or selling diamonds as an investment...

    Wink
     
    


    


  5. denverappraiser
    Ideal_Rock
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    by denverappraiser » Jun 8, 2019
    ‘Investment diamonds’ were a hot thing back in the early 80’s. They would come sealed in tamper-proof packages with tons of paperwork about what they were and what they were worth. They were selling at high retail prices. I STILL regularly see them, now usually as part of the estates of the customers who bought them as an investment 40 years ago. The kids want to know what they’re worth on resale. How much have they appreciated? In almost every case, they bring less than they cost, often quite a lot less.
     
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  6. Wink
    Ideal_Rock
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    by Wink » Jun 8, 2019
    Sad, but true. I do not believe I have ever had anyone with the tamper proof cases come in with paper work that was even able to recover what the ancestor paid. On the other hand, many people have brought grandma's ring in and sold it for many times what grandpa paid.

    Antoinette Matlins and Cap Beesley did a lot of work trying to help people recover funds back in the 90's. I used to have two full file drawers full of documents from people who had been hosed by so called investment diamond scams.

    Wink
     
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  7. Diamond_Hawk
    Brilliant_Rock
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    by Diamond_Hawk » Jun 8, 2019
    I always shake my head at stories like this. The NFL Player's Association has specific classes and (honest) financial advisers who will tell players the things to look at, the things to avoid and are available to review any type of investment or contract the player(s) desire. It's too bad this wasn't done.
     
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  8. luv2sparkle
    Ideal_Rock

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    by luv2sparkle » Jun 9, 2019
    I wonder if the two stores are across the street from on another. When you go to one of them, they send you across the street to the other. I have always enjoyed looking through them but I wouldn't buy anything there unless I had researched prices of similar pieces before I bought. Some of their pieces seem over priced (especially since they are estate pieces). They also have no problem with you suggesting a price you are willing to pay and don't mind a bit of back and forth over the price. I read an article that said Drew Brees had been friends with him for years and trusted him, but for such a large purchase, I would have done some research first. It will be interesting to see how this plays out.
     
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  9. pinklemonadegurl
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    by pinklemonadegurl » Jun 13, 2019
    And this is why I'll only ever make future diamond purchases from proven online vendors like WF and Wink-I no longer feel 'safe' entering a B and M jewelry store and getting an accurate description/true picture of specs and value. My limited experiences with these vendors have sold me on quality, exceptional jewelry, and customer service that cannot be matched.
     
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  10. m51galaxy
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