GOG Consignment ... Excellent Experience

[kenny]

I just sold a diamond on consignment with Good Old Gold.
Once again, I could not be happier with Good Old Gold's service and terms.

I strongly recommend selling this way as it yields the highest price for the seller, though it is probably the slowest way to sell.
Speed of sale of course depends on the price you set, and you do not get paid till the diamond sells.
I imagine vendors like consignment because they didn't pay one penny for your diamond that is sitting in their safe.
Zero investment for them ... well not zero but way less than the diamonds they paid wholesale price for.

My initial asking price was supported by several online comps.
After several months of no sale I lowered the price.
Still, it sold for a price 58% above what I paid seven years ago.
Even after GOG's commission I netted 42% over what I paid.

The buyer got a superb diamond at a very good price in today's market.
Plus if I replace the diamond I have to pay today's prices.
I'll also mention that any diamond you buy from any vendor may have been previously-owned.
People do not throw diamonds away after a death or divorce.

I won't describe the diamond or the exact price out of respect for the buyer, whom may or may not read PS.
For that reason, if you know what diamond I'm referring to please do not describe it in this thread.

I object to the common idea here on PS that a private seller is under some ethical obligation to sell at some so-called "fair" price that's lower than today's retail or some percentage under what they paid.
Even if you do not consign your diamond, price it wherever you want.
Get as much as you can.

If it doesn't sell quickly enough for you, then lower the price.
Just don't be bullied by the niceness-nazis.
If the busy-bodies don't like your price they don't have to buy it.
Unless a gun is involved, every price arrived at between a buyer and a seller is fair.
Don't you ask today's price when you sell a house?
Imagine if someone complained you were a meanie because you didn't price your house at 70% of the price you paid for it 10 years ago.

I started this thread not to brag, but to inform.
I just experienced the benefits of one method of selling a diamond that is very different than what is often recommended here on PS.
That makes this a very valid story to tell.

 

[Enerchi]

Congrats on the sale, Kenny! Thanks for this information - good to keep in mind...!

 

[jj970]

I wish I could say the same thing.

Bought a diamond but the engagement fell through and tried to consign for 2.5 years. Lowered the price a few times...and had started at about what I paid. Bought in in 2007 and tried to sell from 2010-2012.

Didn't sell.

Ended up losing about 4k on it...sold it to some wholesaler in NYC.

I didn't advertise while on consignment.

 

[kenny]

I wish I could say the same thing.

Bought a diamond but the engagement fell through and tried to consign for 2.5 years. Lowered the price a few times...and had started at about what I paid. Bought in in 2007 and tried to sell from 2010-2012.

Didn't sell.

Ended up losing about 4k on it...sold it to some wholesaler in NYC.

I didn't advertise while on consignment.

Thanks for your input.
I'm sorry consignment didn't work out for you.
I have no idea how rare my success story is.

Did you consign your diamond at a local brick and mortar jewelry store?
Was the diamond loose or in a ring?
I suspect it is much more easy to sell a loose diamond than one in a ring.
I also suspect ease of sale is affected by the carat weight, color, clarity, cut quality and which lab graded the diamond,

Mine was consigned at a B&M store in NY, but GOG has a lot of Internet traffic too; perhaps all those Internet eyeballs is why it sold well.

 

[diamondseeker2006]

Congrats, Kenny! Someone is very fortunate to get that very beautiful stone! I, too, successfully sold a H&A diamond through GOG on consignment last summer. I also made a profit because the stone was bought prior to the diamond price increases of 2011. That allowed me to more easily bump up to the 2.3 ct AVR I am wearing today! I also sold another diamond on my own that was newer without taking too horrible of a loss because the diamond was great quality. The one thing I have learned is that great quality stones will always sell eventually although super high color and clarity may move more slowly.

 

[TC1987]

I agree about the price, Kenny. There are people who just push and push to try get something for nothing. Congrats on the sale. Sometimes you just have to wait for the right buyer who will pay something like what the item is worth. Most of the PS stones are superb.

 

[kenny]

Congrats, Kenny! Someone is very fortunate to get that very beautiful stone! I, too, successfully sold a H&A diamond through GOG on consignment last summer. I also made a profit because the stone was bought prior to the diamond price increases of 2011. That allowed me to more easily bump up to the 2.3 ct AVR I am wearing today! I also sold another diamond on my own that was newer without taking too horrible of a loss because the diamond was great quality. The one thing I have learned is that great quality stones will always sell eventually although super high color and clarity may move more slowly.

Congratulations to you too, and your AVR was so worth the trade ups and wait.

Yeah, I think it takes a long time for a buyer for a D IF to wander by, same with M I2s.
I'd guess the easiest diamond to sell would be a round H VS2 1.0 carat with superb cut, no fluorescence, and a GIA report.

 

[NonieMarie]

Congrats on the sale...now you can use the cash to buy that parrot ring in La Jolla. It is chirping your name.

 

[John P]

What I like about this thread: Intelligent, savvy consumer enthusiast cooperating with intelligent, savvy professional retailer - to clear mutual benefit.

Congrats to all involved.

 

[diamondseeker2006]

Congrats, Kenny! Someone is very fortunate to get that very beautiful stone! I, too, successfully sold a H&A diamond through GOG on consignment last summer. I also made a profit because the stone was bought prior to the diamond price increases of 2011. That allowed me to more easily bump up to the 2.3 ct AVR I am wearing today! I also sold another diamond on my own that was newer without taking too horrible of a loss because the diamond was great quality. The one thing I have learned is that great quality stones will always sell eventually although super high color and clarity may move more slowly.

Congratulations to you too, and your AVR was so worth the trade ups and wait.

Yeah, I think it takes a long time for a buyer for a D IF to wander by, same with M I2s.
I'd guess the easiest diamond to sell would be a round H VS2 1.0 carat with superb cut, no fluorescence, and a GIA report.

Thank you, Kenny! Yes, it has been a journey but I am so thrilled with my new diamond! And I also agree that the near colorless range and VS2-SI1 would be easiest to resell. Both of mine were VS1 and it did take the right buyer, and I recall yours had higher specs than mine. But I am happy for both of us and I really appreciate the service at GOG!

 

[diamondseeker2006]

What I like about this thread: Intelligent, savvy consumer enthusiast cooperating with intelligent, savvy professional retailer - to clear mutual benefit.

Congrats to all involved.

Can I just say what a pleasure it was to finally meet you, John?!

 

[bright ice]

Congrats Kenny, I am thrilled for you. It's great when you get a fair price for whatever one sells. Jonathan is a great businessman.

 

[Dancing Fire]

I started this thread not to brag, but to inform.
I just experienced the benefits of one method of selling a diamond that is very different than what is often recommended here on PS.
That makes this a very valid story to tell.

Oh please do!, b/c it ain't everyday that we can sell a diamond and make a profit... Kenny, I need a loan!

 

[Laila619]

Nice job, Kenny!

 

[CharmyPoo]

I agree that G/H VS1-SI1 and excellent cut are easiest to sell. Too bad we don't see that many of those on the second hand market. I have lots of friends who would happily jump on that especially in the 1 ct to 1.5 ct range.

 

[John P]

What I like about this thread: Intelligent, savvy consumer enthusiast cooperating with intelligent, savvy professional retailer - to clear mutual benefit.

Congrats to all involved.

Can I just say what a pleasure it was to finally meet you, John?!

The pleasure was mine. Cheers!

 

[diamond-enthusiast]

Nice story and congrats!

 

[jj970]

I didn't think it was the consigner's fault.

It was a large, excellent performing princess. It was a 3 ct H eye clean SI1.

Obviously since it didn't sell on consignment, I didn't have the right buyer and/or my price was too high. I lowered it quite a bit though but no takers.

I never thought I'd have to sell it though...

 

[diamondseeker2006]

I didn't think it was the consigner's fault.

It was a large, excellent performing princess. It was a 3 ct H eye clean SI1.

Obviously since it didn't sell on consignment, I didn't have the right buyer and/or my price was too high. I lowered it quite a bit though but no takers.

I never thought I'd have to sell it though...

Your diamond was so much larger than the typical engagement ring that that probably made it harder to sell.

 

[kenny]

I didn't think it was the consigner's fault.

It was a large, excellent performing princess. It was a 3 ct H eye clean SI1.

Obviously since it didn't sell on consignment, I didn't have the right buyer and/or my price was too high. I lowered it quite a bit though but no takers.

I never thought I'd have to sell it though...

If the seller had fewer roaming eyeballs than GOG that's not their 'fault'.
If the vendor had no Internet presence the odds that the right seller will see it are very slim.
Which lab was it graded by?
Any lab other than GIA would have fewer takers.
Personally I consider AGS equally as reputable, perhaps more-so for cut grading ... but fewer people are aware of AGS than GIA.

Grading by other labs like EGL introduces doubt about the accuracy color and clarity grades there therefor anxiety about what the price really should be.
Was the diamond loose or set?

Setting preference is even more personal than specs and shape of the diamond.
There are zillions of different settings but only a few diamond shapes.
Odds of a customer liking both the stone and the ring are pretty remote.

Timing is also important.
I happend to buy mine before huge price increases.
That's just luck since prices may rise or fall over time.

Patience is a virtue when selling a diamond.
Mine was on consignment for 16 months.
How long was your listed?

 

[kenny]

Kenny could you please link to the sold stone I am curious.

Sorry, but like I said in my opening post I don't want to identify the stone here, out of respect for the buyer.
He/she pay read Pricescope.
Even without the diamond specs, some people may consider this thread to be in poor taste.

Many buyers are under the impression that the diamonds they buy from a vendor are all guaranteed to be 'new', as in never owned by a client before.
This is not always true, but why take a chance on bursting this buyer's uninformed bubble?
FWIW, all diamonds are millions of years old.

I'll just say it was a very desirable stone in every way, which I believe helped make it such a successful sale.

 

[lknvrb4]

I was able to sell my pear for a profit last month, but I bought it below market value because it was priced wrong on the vendors website. On the other hand, my first ering from a mall store I sold for about half of what I paid for it.

 

[mzzdna]

Hi Kenny,

I just ran across this thread and was wondering if you considered selling it on your own first or if you went straight to GOG? I'm debating if I should do that myself. The stone I have was purchased at GOG, will they still let me set the asking price for it? Are you allowed to say what GOG charges for consignment fee?

Thanks!!

 

[vices]

This is probably an extremely long shot, but maybe I'm the one who got it.

I got my diamond from a Chicago jeweler, who got it from a guy in New York, who had gotten it from a customer selling it.

 

[kenny]

Hi Kenny, I just ran across this thread and was wondering if you considered selling it on your own first or if you went straight to GOG? I'm debating if I should do that myself. The stone I have was purchased at GOG, will they still let me set the asking price for it? Are you allowed to say what GOG charges for consignment fee? Thanks!!

Yes, GOG will let you set the asking price for it.
They may give an opinion if you ask.
IIRC, they asked me what I wanted to sell it for and I replied with a price and with comps to support the price.
Remember that they are not buying the stone and you don't get paid till it sells.
That means it will sit in their vault next to stones that they paid for, so if yours takes a long time to sell because the price is high it's no skin off GOG's back ... though they do have costs associated with having it such as insurance.

I did not consider selling it myself since everything I read here on PS says you will get much less.
Why throw money away if I'm in no hurry to sell?

Ask Jonathan at GOG what they will charge you for selling your stone.
I'd guess they consignment percentage will vary with the desirability, salability, the the value of your stone.

x% of $1,000 is much less than x% of $100,000, so I would expect consignment percentages will be higher with a less expensive stone since the seller's costs are fixed for any stone, but you have to ask GOG.

 

[kenny]

This is probably an extremely long shot, but maybe I'm the one who got it.

I got my diamond from a Chicago jeweler, who got it from a guy in New York, who had gotten it from a customer selling it.

I know nothing about the buyer, but if it is you Congratulations!
The stone you got is a superlative one at a great price in today's market!
The price started 20% higher 16 months ago, and that price was supported by comps from the big online vendors, not Fifth Avenue boutiques.
Plus, those comps were probably not cut half as well as this one.

 

[blackprophet]

My initial asking price was supported by several online comps.
After several months of no sale I lowered the price...

...The buyer got a superb diamond at a very good price in today's market....

...I'll also mention that any diamond you buy from any vendor may have been previously-owned.
People do not throw diamonds away after a death or divorce....

...I object to the common idea here on PS that a private seller is under some ethical obligation to sell at some so-called "fair" price that's lower than today's retail or some percentage under what they paid.
Even if you do not consign your diamond, price it wherever you want.
Get as much as you can...

I have a few questions Kenny:

1) You said that you lowered your price and that the buyer got a very good price, doesn't that imply that they paid lower than market value (albiet probably close to market)? That contradicts the last statement above.

2) Looking at the GOG website, seems like the buyer would know that it was on consignment. Was there any bidding mechanism? I.E. if I thought the price was too high, could I have offered less and let GOG get in contact with you?

3) Did GOG help you set the price at all? If no, would they had you asked?

 

[kenny]

My initial asking price was supported by several online comps.
After several months of no sale I lowered the price...

...The buyer got a superb diamond at a very good price in today's market....

...I'll also mention that any diamond you buy from any vendor may have been previously-owned.
People do not throw diamonds away after a death or divorce....

...I object to the common idea here on PS that a private seller is under some ethical obligation to sell at some so-called "fair" price that's lower than today's retail or some percentage under what they paid.
Even if you do not consign your diamond, price it wherever you want.
Get as much as you can...

I have a few questions Kenny:

1) You said that you lowered your price and that the buyer got a very good price, doesn't that imply that they paid lower than market value (albiet probably close to market)? That contradicts the last statement above.

2) Looking at the GOG website, seems like the buyer would know that it was on consignment. Was there any bidding mechanism? I.E. if I thought the price was too high, could I have offered less and let GOG get in contact with you?

3) Did GOG help you set the price at all? If no, would they had you asked?

Answers:

1) I set the price 16 months ago based on comps at other similar online sellers. I was not in a hurry to sell but after around a year I lowered the price 20%. It sold a few months later. If you see this, and making 42% profit, as a contradiction to, "Get as much as you can." so be it.

2) GOG did present low offers to me that I rejected.

3) GOG asked what I wanted the price to be. I did research and presented the price and comps. There was a discussion but it was clear the price was my call.
Perhaps if a customer, with whom GOG has never had contact, wanted to list a 1 cart diamond for $65,000 that they inherited with no grading report, but their grandmother said it came from a tiara owned by the Romanov family though they had no documented provenance, GOG would offer a wake up call instead of just listing it at $65,000.

 

[blackprophet]

Answers:

1) I set the price 16 months ago based on comps at other similar online sellers. I was not in a hurry to sell but after around a year I lowered the price 20%. It sold a few months later. If you see this as a contradiction to, "Get as much as you can." so be it.

2) GOG did present low offers to me that I rejected.

3) GOG asked what I wanted the price to be. I did research and presented the price and comps. There was a discussion but it was clear the price was my call.
Perhaps if a customer, with whom GOG has never had contact, wanted to list a 1 cart diamond for $65,000 that they inherited with no grading report, but their grandmother said it came from a tiara owned by the Romanov family, GOG would offer a wake up call instead of obeying the customer by listing it at $65,000.

Thanks kenny. The consignment thing is something I only recently discovered (and it wasn't even for diamonds), but I think its a pretty interesting mechanism. Thanks for the elaboration.

 

[TC1987]

I have a few questions Kenny:

1) You said that you lowered your price and that the buyer got a very good price, doesn't that imply that they paid lower than market value (albiet probably close to market)? That contradicts the last statement above.
...

Doesn't contradict, at all. He said get as much as you can, and the buyer is under no moral obligation to sell for less than market.

I under stand what he was saying, because there is always % of the buyers who rabidly insist that a seller should be content to get maybe only 30% - 50% of what they paid, or should always sell at loss, or should not even be trying to make a profit on diamonds that may have appreciated >30% since they were were purchased. They act as if making a profit or at least not selling at some horrendous loss to give the buyers a break is somehow wrong, or is unfair to the buyers.

I have been selling things on ebay since 1999 or so. And I've noticed an increasingly growing number of belligerent and cheeky buyers who make unsolicited offers, and make ridiculous lowball offers and they just about go ballistic when they are refused. They badger and threaten and insult the seller, insult the merchandise. and otherwise rant and rage because the seller said No. I sold some jewelry on ebay, and over a 3-month span, I added 7 people to my blocked bidder lists, just because they were rude, insulting, and unreasonable. I sent them a message telling them that they were now added to the BBL, and I cheekily reminded them that they want the merchandise, but sellers own and control it, and the sellers hold all the power.