Help in selling!

[shann79]

I''m looking for some answers regarding selling my diamond engagement ring. I don''t know the first thing about selling, so I''m hoping for your wisdom here! I''d like to know how the selling process works and what I may be able to get for it. Below are the specifics from a GIA report.

Shape: Round brilliant
Measurements: 6.51-6.59 x 3.98mm
Weight: 1.03 carats
Depth: 60.8%
Table: 60%
Girdle: Thin to medium, faceted
Culet: none
Polish/Symmetry: Good
Clarity: VVS1
Color Grade: F
Including 18kt yellow gold setting, paid $7790.
I can''t find the appraisal but I believe it was close to $12k.

Help!

TIA,
Shannon

 

[Colored Gemstone Nut]

Well I always hate to read posst like this...People parting with their diamonds...

There are several online auction places (Like Ebay) but you are not going to get near what you paid for your ring retail...




Re-Sale Value on diamond rings is not very good...




I would find a reputable dealer who might be able to sell the ring for you...You might get the most out of your ring (money wise) this way. The dealer will get a cut for making the sale and chances are you might be able to get more for your ring if it is being marketed in the "right atmosphere" like a jewelry store....




Hope this helps...

 

[Giangi]

Well, I'll second what Josh said. But you have a GIA report, and this is a good place to start.

I would try to sell it on consignement at your local jeweler... People on eBay seem to go mad over I2-I3 stones and are looking for ''flash for the cash'' goods and not a fine quality stone like yours.
Have you tried to call your jeweler to see if he has a good or decent buyback policy??

Let us know!

 

[canadiangrrl]

DCD has a consignment option for certified stones. You might want to give them a call. www.dirtcheapdiamonds.com

Whatever you do, I'd avoid e-bay.

 

[shann79]

THanks for the help. I'm going to call the jewelry store and see if they have a buyback policy or not. That will be a first step. No one mentioned what I could get for it--is it normally half or what?

 

[Mara]

To start...it seems you paid alot for the stone in the first place. I honestly don't think you'll get anything close to that amount, your best bet may be a trade-in, but see below for possible caveats.




If you sell it on eBay, you'll get something like 30% possibly.




If you pawn it, around 10-15%.




If you trade it up to your original jeweler, hopefully he will take the entire amount you paid and credit you that BUT many jewelers have policies about this, something like...they'll take a trade-in but you have to purchase 50% more on top of that (e.g. diamond was $7k, they give you $7k credit but you have to buy something that is $11k).




I would also see if a local jeweler would take a trade-in...possibly one that has a wide breadth of things for you to use that credit with. But again you may run into that same trading UP $$ issue. He may also not offer you nearly what you paid...e.g. if he feels he can resell it for $6k, he may offer you $5k. Also the stone has to be well-cut for a jeweler to even consider taking it, they have to turn around and re-sell it.




I would get it re-appraised and ask for a *realistic* appraisal. That appraisal you have sounds a little inflated, as does the original purchase price...so it behooves you to know exactly what someone reputable feels is a realistic dollar amount for this stone and ring. That way you don't feel slighted if someone offers you $3k when you paid $7 and it appraised for $12. In reality it would probably be around $6-7k at a B&M stone and $5k online--but it depends on cut. Anyhow best of luck and let us know how things turn out.

 

[diamondsman]

I don't think you overpaid!! but to resale it is a different story,
I htink that if you were to consider around 5000.00+ there would be some interest on my part,I would need to see a copy of the cert first.

 

[shann79]

Thanks, Diamondsman! I'll definitely consider that. I'll probably call the jeweler and get an appraisal first. How do you do business? I don't know the first thing about this stuff. Tell me how to make sure I can trust you and stuff. Would I have to mail it? Showing you the cert is no biggie. I could scan it right now if that's good enough.

Oh, and about the original jeweler--will they only do a trade? They won't buy it for cash? I don't need more jewelry. I need mula.

shannon

 

[Colored Gemstone Nut]

Hi Shannon,




Just some friendly advice....




It would be in your best interest to contact Dimondsman directly...

When posting on the forum I think it is always best to discuss personal business with the vendor directly, not on the forum....




I have always had great luck dealing with a vendor or dealer over the phone or via-email with my initial inquiries...




If things work out post your experience here..

Diamondsman is a contributor to this forum and has always added valuable insight...I am sure he can supply you with his credetials on a more personal level...

 

[Mara]

If someone is offering you cash for it, take it and RUN! In my opinion it will be hard to get someone to just buy the stone from you--and if I were the original jeweler, would only do it if it was in my best interests. If you were a jeweler, why would you buy a stone from some random person when you can get the same type of stone from your wholesaler--who you trust? It would have to be in the jeweler's best interest to take the stone from you. This probably means a huge discount to make it worth their while (e.g. you paid $7k, they offer $3 or 4k, then re-sell for $6500) or prices under their wholesale. You may have more luck with the original jeweler who sold you the stone, but then again they may not be interested either. Shop the stone around locally as well.




Personally, I would keep the stone and re-set it into a pendant. Diamonds seem so hard to re-sell from what I have read and heard that it almost doesn't seem worth it AND I would never want to take the $$ loss on a beautiful stone. My two cents though--sounds like you just need to get rid of it. Try to haggle the best deal possible, then just sell it for as much cash as possible.

Good luck!

 

[shann79]

It IS beautiful and I wish I could keep it. However, I'm seeing it as a very sparkly downpayment on a house or car.

SHannon

 

[spicolicpa]

I am curious....do not answer if it is personal,....but what prompted you to sell this typically very very emotional trinket?

 

[Caratz]

As long as you don't need money right away, you can wait until you find someone who offers you a reasonable price. You can always put it on ebay with a reserve price. The only thing you have to lose is the listing fee. You can always list it in your local newspaper . . .

Personally, I would not accept a 30% or 50% offer.

Beware that in the jewelry business, appraisals are often grossly inflated.

 

[shann79]

Wow, so you think it's possible to get more than that?

 

[canadiangrrl]

How badly do you need or want the money?

If someone is considering offering you 5k for the ring, I'd check it out. You're not likely to do much better, even with a private sale. In fact, you're liable to do much worse, unfortunately.

 

[Mara]

Yes I agree, if you can get $5k you are doing pretty good. It's hard to re-sell...even privately. People tend to have hangups on buying 'pre-owned' stones which IMO is foolish because they so many are pre-owned in some way!

 

[shann79]

Thank you! I just got off the phone with the original jeweler--no buy back policy. Boohoo! I'll check into the private stuff.

 

[Caratz]

----------------
On 11/24/2003 7:08:53 PM shann79 wrote:

Wow, so you think it's possible to get more than that? ----------------

Literally, I would rather give a diamond away than take 30-50% of what I paid for it.

I'm not sure how the details of the IRS rules work, but generally you can take an itemized tax deduction for a non-cash charitable contribution, provided you get a legitimate appraisal before giving it away.

*IF* you can find a charity willing to take it off you hands, and *IF* you can legitimately take a $12,000 tax deduction, I would think that would be the best way to go. You'd get about $4000 back from fed/state government, and the charity would get a few thousand for it . . .

Like I said, I am not sure how the rules work, but if I couldn't get a decent sale price for it, I would look into this option . . .

 

[Richard Sherwood]

Shannon, your diamond (if GIA certified) and setting probably have a wholesale value in the neighborhood of $6400-$6500. You purchased at about a 22% markup, which is definitely not overpaying.

There are several different ways to market your diamond. It's really not that hard. Diamonds are a hot item with thousands sold everyday, there's no reason you can't sell yours. How much you get all depends on how much effort you put into the process.

First, let me say that the Diamondsman tentative offer is a very fair cash offer. Most estate dealers would probably offer $3500 to $4000 on this diamond, so the price he offered is a professional one from a confident dealer who knows his market.

The only way in which you could realize more than his offer is if you:

1) have a jeweler sell it for you on consignment, with you netting the wholesale figure ($6400-$6500) and him making his 15 to 25 (or whatever) percent markup.

2) have a local or internet auction house sell it for you, in which you probably would net anywhere from wholesale minus 20 percent to full wholesale.

3) offer it to private clients via your local classifieds. In this manner you will probably net wholesale to wholesale plus 10 percent if you're patient.

It all depends on how much patience you have and how much energy you're willing to invest in the selling process. If you want to sell it quick with minimal effort, I don't think you can beat the Diamondsman's offer.

 

[Michael_E]

shann79,
Just a little added note on going the private route. If you do try to sell to a private party locally, please arrange to meet them in a secure environment, (bank lobby, etc.), and not at your, or their, home. You don't want to make yourself a target.

 

[strmrdr]

From what Iv seen of the prices on used diamonds here you would be well off to snag the 5k offered.
You would be lucky to get $3500 on an $8000 ring if that here no matter how you sold it.
The pawn shops wont even take them for any price around here most times.



edit to add > here = my town USA.

 

[shann79]

Richard,

Thanks for the info! If you were to list it in the paper, what price would you give it? I don't want to go too high or too low.

Shannon

 

[fire&ice]

This is a marketable stone to a selective audience. IMHO, 5k is a decent cash offer. Diamondsman may have a buyer for such stone & is willing to bet on it. Not a bad stone for inventory either as he seems to like the 60/60 stones. There is something to be said about a bird in hand.

Also, classifieds can be tricky. You may get people just wasting your time. You may get people who have sinister intent. Not to mention time & money out for the ad.

Good luck.

 

[newenglandgemlab]

I'm not sure how the details of the IRS rules work, but generally you can take an itemized tax deduction for a non-cash charitable contribution, provided you get a legitimate appraisal before giving it away.

*IF* you can find a charity willing to take it off you hands, and *IF* you can legitimately take a $12,000 tax deduction, I would think that would be the best way to go. You'd get about $4000 back from fed/state government, and the charity would get a few thousand for it . . .

Hi Caratz, Charitable contributions/donations are based on a Fair Market Value (FMV) and that $12,000 would not be a legitimate number. FMV means willing buyer and willing seller both with complete knowledge of the facts and not pressed with time constraints in the most commonly traded marketplace. FMV is normally less than the cost to buy from a vendor and the amount would depend on the item. Cindy

 

[spicolicpa]

This is true assuming she has income to float/offset this deduction during the itimization process.

SpicoliCPA is a wonderful charity and it appears we are currently opperating a not-for-profit based on some of the new clients we picked up this year.

 

[Richard Sherwood]

I would ask $7,500. That gives you room to drop in price when the haggling starts, which it will.

If you can locate the $12,000 appraisal, you can use that as a selling tool. If not, you might consider getting a new appraisal, or use the original invoice.

What sort of city do you live in? Does it have an upper middle class, professional strata to it? These are your best customers.

Don't take anything but cash or funds wired to your account. Even cashiers checks can be stolen. Don't give out your home address. Meet people at your bank, in the lobby or one of the conference rooms. If they want to get it appraised that's fine, but make sure you have the money up front with a 48 or 72 hour refund period. Be friendly, but firm.

Be prepared to weed out all the bottom feeders and time wasters. Do as much of this over the phone as possible. Stick in there, because your time invested can realize you hundreds or thousands of dollars. Consider it as a selling job, and take it as a challenge to get the most for your product.

 

[Richard Sherwood]

-----------
The pawn shops wont even take them for any price around here most
times.
-----------

Storm, the pawn shops are woefully uneducated bottom feeders, bless their hearts. You can't expect them to recognize and pay up for quality.

 

[strmrdr]

----------------
On 11/25/2003 9:03:07 PM Richard Sherwood wrote:

-----------

The pawn shops wont even take them for any price around here most

times.

-----------


Storm, the pawn shops are woefully uneducated bottom feeders, bless their hearts. You can't expect them to recognize and pay up for quality.


----------------

True enough but if there was a market for them at even 30% of retail they would be scrambling to get them at 15% and they aren’t.
I know of one that if he could turn it over quickly for even a $50 profit he would and he is one that won’t touch them.
Maybe its just my area rising unemployment $50k a year jobs being replaced with $20k a year jobs doesn’t make for good diamond sales.
4 jewelers that I know of went under this year and one had been in business over 70 years.

 

[shann79]

Thanks again, Richard. I live in Columbus, so yes, we have a good white-collar crowd.

One more question--how does an appraisal work? Where do I go to get one? Do I have to leave it with them or can I watch? What does it cost?

 

[diamondsman]

Thank you everyone for your support,I am and always been a fair person in my selling and buying of diamonds.
I would buy this or any other stone, as long as I can make a bit of profit I am not a "hazir"(pig).but i do need to know right away, and I would not buy stones that have been shown and peddeled all over to get the last penny out.
I understand that somtimes people want to get their money back ,but as much as I am fair I will not play second fiddle.
as you all know orders from customers change daily, and somtimes what I offer today ,I might not be able to give tommorrow.
I still have not gotten a response or seen a copy of the cert.
Good luck to you in what ever you decide, and i hope you will sell your diamond real soon.