Getting diamond and setting separately? Any Canadians here?

[Redgram]

I'm getting close to importing a diamond from the US into Canada. Due to time constraints, I will be getting the diamond on a temporary setting that I will use for the proposal. After the proposal, assuming my girlfriend says yes, we will decide on a final setting.

I figured that I would send the diamond back to where I bought it and then choose one of their settings or maybe even do a custom ring. However it dawned on me that there would be a lot of back and forth international shipping and expensive insurance involved.

I'm now considering the following options:

1. Buy the setting from the original vendor in the US (I may get a small discount since I got a diamond from them) and then have the diamond set locally in Canada.

2. Buy a setting from someone in the US that hand forges rings and then have the diamond set locally in Canada. Is this even possible? Are they willing to make a custom setting without the actual diamond?

3. Buy the setting locally and have that shop set the diamond.

Any advice is appreciated!

Also, my understanding is that I will need to get some kind of diamond insurance if I'm getting my diamond set from someone other than the original diamond vendor. Is there anything else I should keep in mind?

 

[pearaffair]

I think the duty paid for unset vs set stones is different.

I'm Canadian and importing jewelry sucks! Good luck to you

 

[OFY]

This is what we did with my diamond, only because the local setting didn't work out.

There are no duties, only your regular sales tax. I think technically you're supposed to pay tax on the full value of the ring when it comes back, not just the setting, even though you would've already paid it on the diamond when it came into the country the first time (makes no sense and seems like a cash grab to me) but I'm pretty sure that's how it works. I didn't have to do this though since there was some some confusion mine was listed as a return or repair.

 

[kmarla]

You won't pay duty on the loose diamond (NAFTA). If you need to send the diamond back to U.S. to change/add setting, it will be listed as a repair. This has been my experience and the correct paperwork/labels etc were provided by the vendor. You will need to keep all your original paperwork from the diamond to show proof that duty/taxes have already been paid. Of course my best advice is to contact CBSA if you have any doubts.
I have never asked a local jeweller to set a loose diamond in a setting that I didn't purchase from them so I can't help you out there, but I have had my own loose diamond set into a designer setting purchased through a local jeweller with no issues. I'm in the process now of having the diamond reset into a custom setting with a local jeweller, again no issues. I have insurance on the diamond, and it's also insured by the jeweller while in their possession.
Hope this helps and good luck!

 

[Redgram]

Thanks, everyone!

I have insurance on the diamond, and it's also insured by the jeweller while in their possession.

Where did you get the insurance and if I may ask, about how much does this cost? Do yo know if the insurance covers the diamond while it's being set in Canada or across the border?

 

[OFY]

Jeweler's Mutual is likely your only option to insure the diamond during setting. They provide stand alone insurance which is what many people here use rather than adding to their home owner's insurance. It also provides the benefit of not having to make a claim against your home owner's insurance in the event that the ring is lost and they actually allow you to work with the jeweler of your choice for replacement

 

[diamondseeking]

Not to hijack this thread, but I am also Canadian and looking to insure my ring (overall cost was about 30k USD) with jewelers mutual. In the event that I lose the ring- I understand I am able to work with a jeweler of choice for the replacement correct? Also- what if I want to upgrade at that time- can I do that & pay the difference?

 

[OFY]

Luckily I've never had to replace my engagement ring but according to JM, yes you can work with the jeweler of your choice.

You should probably call JM and get clarification but I think upgrading is an option, but of course they're only going to provide a replacement amount of the equivalent of your pre-upgrade ring.

What I gather from reading other posters' experiences, if for instance you have a 1.5ct G VS2 ACA from Whiteflash and you lose your ring but decide you would like to replace it with a 2ct G VS2 AVC from Good Old Gold, you're free to do so but you first need to get Whiteflash to provide JM with a quote for the cost of a 1.5ct G VS2 ACA. This essentially proves how much JM owes you to replace the ring and they will give you this amount to spend on whatever you want with whatever jeweler you want (assuming you have a relatively up to date appraisal and have been paying premiums for that amount) and you would pay whatever the difference in cost between the two diamonds.

 

[kmarla]

Thanks, everyone!



Where did you get the insurance and if I may ask, about how much does this cost? Do yo know if the insurance covers the diamond while it's being set in Canada or across the border?

I'm insured through Jeweler's Mutual. The cost varies of course depending on the value of the diamond and setting. It also depends on whether you choose to have a deductible or not. I wanted to keep my jewelry policy separate from my Home Owner's policy.

I purchased from Whiteflash and their insurance would have covered it initially when it was being set and shipped. My Jeweler's insurance is covering it currently while it is in their possession to be reset. I also have my insurance through JM
I just edited to add that my annual insurance premium is about 1.6% of the value of the diamond/ring, and this is with zero deductible. Hope this helps.

 

[OFY]

Cost is usually 1-2% of the value of the ring annually. For a loose stone you can use the receipt in lieu of an actual appraisal.

JM covers the stone during setting and while travelling, I'm 99% sure the fact that its being set in the states is a non-issue and would be covered just the same but you're safest bet is to call them and get clarification on all these questions (better yet, get the answers in writing)

 

[Redgram]

Fellow Canadians, how did you handle the currency exchange? Did you just go through your bank or did you go through a currency exchange dealer? Going through the bank would keep things quick and simple but their rates are usually not very competitive.

 

[kmarla]

I've used both bank (wire transfer) and credit card. The bank's exchange rates are usually less competitive. Keep in mind that there is a fee for doing a wire transfer. Depending on what that fee is (I think it was about $40 CAD at my bank) plus the higher cost for international exchange, it may pretty much negate any small discount offered by the vendor for using the wire transfer. You need to do the math to see if it's worthwhile. Also keep in mind that the bank offers no protection to you with a wire transfer should there be any issue with the transaction. Using a credit card is straightforward and the exchange rate is usually better than the bank. There is also the advantage of better peace of mind for you, should something go wrong with the transaction. I always notify the CC company ahead of time if I'm using it to make a larger purchase, especially out of country.
To sum up, I've done both wire transfer and credit card and had positive experiences with both. I haven't gone through a currency exchange dealer so have no experience with that.

 

[diamondseeking]

I did mine through the bank to keep things simple because I was on a bit of a deadline. The rate wasn't competitive and yes there is a fee to wire.