E-ring appraised for less than purchase price

[mitsitsad]

Hello all,

I recently purchased a main stone (abazias - great experience) and a setting (da'carli) separately on the internet - the total purchase price was around $8,500 - $7,500 for the stone and $1,000 for the setting.

I took the 2 items to a local jeweler/GIA appraiser (South Jersey) to have the stone set and have the entire thing appraised. Let me start by saying I am very happy with the ring and think my fiancee to be will be very happy with it. However, the ring appraised at only $7,500, a thousand less than what I paid...at first I thought this was because I didn't bring the certification with me but after reading online further it seems like this should never happen. I know I didn't get ripped off or anything but I am unsure what to do - should I have the stone appraised by someone else? If so then what did I pay this jeweler for? Can I have the stone insured for what I actually paid as opposed to what it is appraised at? I don't really care about the number, but in the event something happens to the stone I don't want to have to fork over extra cash after my deductible to replace in kind, and I had always thought e-rings appriased for more than the purchase price. Any advice is appreciated. Thanks.

 

[marcy]

What is the difference in the certificates? Was the original certificate GIA? If the local jeweler graded it lower in color, cut and/or clarity that would explain a lower value. Can you post copies of both appraisals and pictures of the ring?

I think the key is you are happy with the diamond.

 

[rainydaze]

my understanding is that you want to use an independent appraiser - one who does not sell or deal in jewelry, only appraisals. an appraisal by a jeweler can be biased because they want to sell to you... it is in their interest to have you believe you didn't get what you paid for so that they can then make the sale to you themselves. of course, that's a generalization and not all jewelers would conduct business this way. however, the only way to be completely sure is to use an independent appraiser.

also, appraisals of stones that are already set are not always as accurate as appraisals on loose stones. that might account for the price difference, if the setting affected his assessment of the the carat weight, color, clarity, etc.

some here have their jewelry insured based upon their sales receipts, not an appraisal (which are usually inflated, and even though you pay the premium on the inflated price, you only collect on the actual cost to replace it with like kind).

all of that said, it is possible you overpaid for the diamond and this jeweler's appraisal is more down to earth. but even then, i would want an appraisal from an independent to help sort this out.

ETA: my bad, i reread your post and saw that you took both pieces to your jeweler to be set as well. so scratch the part about appraisals for set stones differing from appraisals for loose stones!

 

[centralsquare]

Can you take it to a different appraiser?

 

[mitsitsad]

What is the difference in the certificates? Was the original certificate GIA? If the local jeweler graded it lower in color, cut and/or clarity that would explain a lower value. Can you post copies of both appraisals and pictures of the ring?

I think the key is you are happy with the diamond.

I agree with you 100% about satisfaction being the most important thing

I dont have any photos of the cert with me at the moment (just a crappy cell phone pic), but it is an EGL US stone, so I knew going into it that it would appraise at a lower grade than GIA, but I always thought that the price difference was taken into account when pricing EGL stones. It is an EGL F/I1 and it appraised at an I/I2 - pretty much exactly what I expected (though the location of the inclusions are not in the table)



The jeweler who did the appraisal also set the stone in the ring, so he performed the appraisal before setting the stone. I will gladly take it to an independent appraiser, I just wasn't sure if that's a waste of time/money

 

[Amys Bling]

Is the stone certified? By whom?? Does the grading of thevstone by the lab match the grading by the appraiser??I would bring it to another appraiser for a second opinion.

 

[crbl999]

The discrepancy is probably due to the EGL report. Unless you send an EGL stone to GIA or AGS you do not know what you are buying. Therefore, the price of the stone is discounted...but by how much? I don't know how EGL stones are priced so I won't speculate. It is important to remember that you bought the stone and NOT the paper the appraisal or EGL report was printed on. If you are happy with the stone/setting that may be more important than a mind clean issue.

 

[oldminer]

In general, a GIA I-I2 is worth a lot less than a GIA graded F-I1 diamond, but a diamond with an EGL paper grading is as F-I1 is still an unknown quality although we can guess it is lower than the paperwork. How low, or what it is worth, is pure speculation and may confuse you more. If you compare diamonds with GIA papers listed on Pricescope with grades of I-I2 to your diamond, you may begin to see there may be a reason the appraisal was surprisingly low. However, the I-I2 grade is the opinion of a jeweler, not the GIA, and may also be incorrect. It may be incorrect intentionally, or by accident. It may be incorrect because the jeweler is biased or is just not a qualified appraiser. The grade may be wrong for so many reasons that it is just another grade not to be relied upon.

If you love what you bought, just use your receipts to get sufficient insurance unless you wish to solve the mystery of the actual grade. If you can't live without knowing, then get the diamond sent to GIA and get the guessing over with. Once it has the GIA document, you are prepared to get a far more reliable appraisal. Likely as not, you did okay, but the results may still be surprising in some way. We really can't tell you in advance how because we just don't know enough. Worry about the many things that "might" be wrong is way worse than taking care of the rather small things likely to actually be wrong.

 

[kelpie]

I'm very sorry to say this,
That stone looks like a mess and one of the prongs doesn't even look like it's touching the stone. Do you have any options for return? Are you sublimely happy with your purchase?

 

[denverappraiser]

Talk to your appraiser about it. The usual value being described on an insurance replacement type appraisal is what it would be expected to cost to replace the item with another of 'like kind and quality' in the case of a loss. This means the the very first issue is defining what is like kind and quality. As mentioned above, I1 and I2 are importantly different. This expertise is a big piece what you're hiring the appraiser for so don't be shy about asking them these questions. If you feel the seller charged too much for what you got and you're unhappy with the deal, send it back. Abazias is a good outfit and they honor their return policy but do be aware that you have a deadline. I don't remember at the moment but I think it's 30 days from when you receive the package. If you're happy with the purchase and the only question is how much it will cost you (or your insurer) can replace it, THIS is what was answered on the report. If you have questions about their methodology or their value conclusions, call up the appraiser and ask them THAT. I have to say, I agree with the observation above tht the setting work looks less than excellent in the photo and if this was done by the same person who wrote the appraisal, I would worry about that as well. Another one of the reasons for getting an appraisal on new purchases is as a quality control step for the craftsmanship. It's not a second opinion if it comes from the same source as the first.

 

[slg47]

people often thing EGL is a 'bargain' but end up overpaying. the important thing is that you are happy with the ring.

 

[tyty333]

Can you tell us the size of your stone? I would like to check some prices on-line.

Edit - from the prices I'm seeing on-line that stone should be over 2 carats for the price you paid?

 

[mitsitsad]

Can you tell us the size of your stone? I would like to check some prices on-line.

Edit - from the prices I'm seeing on-line that stone should be over 2 carats for the price you paid?

yes - it is a 2.27 carat stone

As far as the setting, I didn't notice the fact that the prong looks off in the photo - I think that might just be the angle of the photo or that the photo was taken before I had it set in the ring - I don't remember when I took that picture - I'll have to check later tonight to be sure, but I think I would notice something like that.

 

[tyty333]

Can you tell us the size of your stone? I would like to check some prices on-line.

Edit - from the prices I'm seeing on-line that stone should be over 2 carats for the price you paid?

yes - it is a 2.27 carat stone

As far as the setting, I didn't notice the fact that the prong looks off in the photo - I think that might just be the angle of the photo or that the photo was taken before I had it set in the ring - I don't remember when I took that picture - I'll have to check later tonight to be sure, but I think I would notice something like that.

Ok, the price seems to be in-line. I take you are happy with the stone?

 

[oldminer]

Ok, the price seems to be in-line. I take you are happy with the stone?

How can you guess the price is okay if the quality is basically unknown? It might be okay, but I don't think it is fair to the person asking for advice to go to a judgment on value based on the information that is available.

I also agree the prongs look like heavy, vertical bricks and rather unfinished.