How can you judge Appraisals ? (Industry sore-spot?)

[Bruin]

I bought a diamond 1.39 VS1,H,No Flr,Depth 59, Table 54,Culet none, Polish-Symmetry Excellent The ring has 2 stones on the side H,s1 .25 on the sides. Diamond 8000, Ring 2000. The total combination cost 10,000.

I go to get an independant Appraisal. Appraisal say its worth 13,800.

I could have bought a 1.10 non GIA cert diamond, H SI1 for 8000 and the appraisal on the diamond was 13,000. When asked if I could get an appraisal for the diamond, the diamond seller said they could get the diamond appraised for 13,000. Yet, When I looked into the scope I could see clouds and crystal formations.(remember no cert, the table was about 65)This would put my onetime shopping at 15,000 if I had stayed with one store, one ring.

Can someone please tell me why I went through the trouble of finding an independant loose cut diamond ? It seems easier to buy a crappy diamond already in the ring, not have the diamond (not GIA Cert)independantly appraised and get a bigger insurance policy. Loose the ring in 2 years and upgrade.

It seems like appraisals lean better if you stick with one diamond vendor. Then its, I wash your hand and you wash mine.

 

[lawmax]

Hi,

When you get an independent appraisal for replacement value purposes, the appraiser is supposed to value the diamond at what it would cost you to replace the diamond and ring in the market in which you bought.

An appraiser is not supposed to give you an artificially inflated appraisal. You will pay higher premiums on that policy. Also, if you have an insurance policy that merely replaces a lost or damaged diamond, they will replace it at their cost, which is less than yours. You will not necessarily get cash back to buy what you want, nor will you be able to upgrade. Read your policy.

Chubb's insurance policy is an agreed value policy and they will give you the cash to do with as you please. You will also pay the premiums based on the appraisal.

A diamond seller will often give an appraisal for far more than the cost of the diamond to make the buyer feel like he/she got a great deal. It is meaningless. There are actually regulations under USPAP that govern these things, but few appraisers seem to care about this. It is possible that an inflated appraisal will make your insurance policy null and void. Read the fine print.

I imagine you bought a loose diamond so that you got an attractive stone at a good price. Your talk about "losing the diamond in two years" is a bit concerning. Fraud is not cool and would cancel your policy, if not worse. I have lost a diamond. The insurance company sent an investigator and I had to describe the conditions of the loss in detail. I'm sure I signed the statement.

Hope this helps you.

 

[Bruin]

Yes, Thanks for the information.

"A diamond seller will often give an appraisal for far more than the cost of the diamond to make the buyer feel like he/she got a great deal."

Exactly, What I found !! It was amazing the difference between appraisal prices and the cost of the diamond. I kept saying to myself, there is no way this diamond could be independantly appraised at such value.

Then again, There are many people paying obsurd prices for diamonds. I had seen prices flux from one store to the next- up to 30%.

I guess this industry is too subjective for my liking..

Thanks

 

[oldminer]

Lots of small businesses are "subjective". It is part of the craftmanship and individuality of the jeweler and the jewelry industry.

If all jewelers were like Zales and other chain stores, I don't believe most folks would like that either. Big, impersonal and with high overhead.

YOU are the one empowered to buy where you feel comfortable. Don't fall for phoney sales pitches if you can avoid them. Walk out. There are so many really nice people in the jewelry business, but you are the one that needs to find them.

It is much the same with furniture stores, carpenters, plumbers, electricians, realtors, used car dealers, new car dealers, and on and on.

The customer must leanr to say "I'll think about it" and leave. Go where you feel at ease...

 

[disgruntled buyer]

I had my diamond graded and mounted by a respected appraiser. I received my ring back in September 2003 with his promise to forward me the appraisal shortly thereafter. Shame on me for trusting the guy and paying him first.

Months later...many excuses...I still have a ring without an appraisal...and no insurance.

Any suggestions??

 

[Richard Sherwood]

Sounds like he needs a little prodding.

Probably a threat to report the situation to the Better Business Bureau will do the trick. Or the Jeweler's Vigilance Committee.