Govt. seized diamond auctions? Worth it?

[cherrytomato]

..

 

[Brian Knox]

Many of these ''so called'' Federal agency auctions are organized by private enterprises.

They will include some seized property, but also will auction off a lot of dreck merchandise from jewelers,wholesalers and manufacturers.

Always read the fine print.

Chance of finding high quality GIA diamonds, slim to none IMO

 

[denverappraiser]

Date: 12/8/2004 12

6:54 PM
Author: Brian Knox

Many of these 'so called' Federal agency auctions are organized by private enterprises.

*ALL* of these auctions are run by private enterprises. Whether they are selling quality merchandise for fair prices has everything to do with the dealer involved and almost nothing to do with where they got their inventory. The same rules apply here as apply to your decisions about internet and storefront dealers. Some are a lot better than others, most are bad.

Neil Beaty
GG, ISA, NAJA
Independent Appraisals in Denver

 

[RockDoc]

Date: 12/8/2004 12:26:50 PM
Author: denverappraiser

Date: 12/8/2004 12

6:54 PM
Author: Brian Knox

Many of these ''so called'' Federal agency auctions are organized by private enterprises.

*ALL* of these auctions are run by private enterprises. Whether they are selling quality merchandise for fair prices has everything to do with the dealer involved and almost nothing to do with where they got their inventory. The same rules apply here as apply to your decisions about internet and storefront dealers. Some are a lot better than others, most are bad.

Neil Beaty
GG, ISA, NAJA
Independent Appraisals in Denver

I think those interested in seized merchandise should read the gov sites .

The Feds aren''t fools... the stuff they have is appraised before it goes to auction, do they do know what they have.

Also seems that I''ve read in the regs that the agency selling the items has to get reaonably close to Fair Market Value/

I don''t remember which gov''t agency site to look in about that info. I can tell you from experience that many of the things they are selling bring more than the retail price. WHY? I drama that people pick up at auctions.

Many auctions often have shills that pump up the prices. You need to know who you''re bidding against.


If you buy some items that are sold because they were impounded by the drug agency, often they will track what you buy and see how you use it. This is particularly true with aircraft.

Rockdoc

 

[denverappraiser]

Date: 12/8/2004 1:44:39 PM
Author: RockDoc.

The Feds aren''t fools...

This seems like a bit of a stretch but, in this case, I agree. They sell this way because they get the most money this way.

Neil

 

[oldminer]

Before items seized go to auction they are appraised by guys like me so that the Feds know approximately how much to ask, as a minimum bid for any item. This pretty much eliminates hitting a home run, but the values can be very fair. From what I have appraised in seized property you can get questionably altered Rolex watches, large bling-bling name badges, blind saints led by a shepard dog, and various other gross pieces. Some have super diamonds and others have junk. It runs the full gamut, but most of this stuff has the distinct taste of the fast money crowd. Not all of it, but the majority.

I see no harm in bidding at an auction for a piece you like until the price becomes too high. At that point, stop bidding and go get a normal vendor to sell you a very similar gemstone. Very few diamonds or gems are so scarce that you cannot buy them without paying a huge premium.

 

[fire&ice]

I''ve successfully bought at auction that are selling safety deposit items left unclaimed. I''m pretty careful which auctions I attend & always preview the merchandise. One can usually get a feel if it''s legit or not. But, as a caveat, I use auctions on a regular basis as a buying venue.

One of my best purchases - a ruby encrusted rose gold retro style Paul Ditishiem swiss watch. Had it cleaned and appraised. That thing tells better time than my Rolex. I only wear it on dressy occassions though.

Someone did post a great auction that one of the majors are handling. Lots of money laundering diamonds seized in an insurance scam. Ironically, sometimes noterity will cause the items to push higher.

Thing is - if the auctions legit - your going to be competeing against diamond dealers. And, yes, I have seen brand new things that one can buy at Michael''s sell for twice the retail price. But, things can slip through the cracks.

For a fee, sometimes you can ask someone who knows what they are doing inspect, advise & bid for you.

 

[strmrdr]

Since the huge scandals a while back about the goverment selling things on insider deals for pennies on the dollar and selling things that should have never been sold it has tightened up a lot.
The odds of getting good stuff at a reasonable price are a lot slimmer than they used to be.
Even if there is some good stuff you may have to buy literly a ton of crap to get it.

Its pretty much standard practice that if they know something is going to be in demand to put it in a lot with the stuff they know they normaly couldnt even give away.
That led to the practice of picking thru it and leaving the garbage sitting leaving a huge mess to clean up creating another scandal.
So pretty much the rule is that if its in your lot it goes home with you.
I know guys that leave the auction grounds with full trailers to get 4-5 sellable pieces.