Independent appraiser

[ps17a]

I am in the process of buying a stone from a jeweler and he will make the ring for me. I know it is important to appraise the stone, and have a few questions

1. Should I appraise the loose stone or wait until the stone is set? From my conversation with the jeweler, it seems he wants to hold on the stone before I pay full value. And I am only supposed to pay in full once the ring is set.

2. What if the appraisal value is significantly lower than the stone price ? Do people usually have that kind of contingency in the contract?

3. What do appraisers look at? Do they give an independent grade, or they just make sure the stone matches the GIA certificate?


Any input and comment is appreciated.

 

[enbcfsobe]

I am in the process of buying a stone from a jeweler and he will make the ring for me. I know it is important to appraise the stone, and have a few questions

1. Should I appraise the loose stone or wait until the stone is set? From my conversation with the jeweler, it seems he wants to hold on the stone before I pay full value. And I am only supposed to pay in full once the ring is set.

YES, get the stone appraised before it is set. There is no reason NOT to -- other than if the jeweler balks, which should be a sign to you to run the other way. Having the stone appraised un-set by a truly independent appraiser (not just another jewelry store) means it can be closely examined and accurately evaluated/verified against the certification.

NO, do not pay in full until everything is complete. The jeweler can send a stone directly to an independent appraiser (his insurance should cover it during that process I think), and the appraiser then sends it back to the jeweler. I had a jeweler send 2 stones for the appraiser to look at, and then decided which to buy. You probably need to put down a substantial deposit, especially for a custom setting, but I would never pay in full until you have everything in hand.

2. What if the appraisal value is significantly lower than the stone price ? Do people usually have that kind of contingency in the contract?

One way to avoid this is to use the PS diamond search to look for similar stones based on size, cut, color, clarity. It is mostly helpful for rounds. You can also post the stats and asking price and ask for comments from the experts. I would do this before you even have it sent out for appraisal to avoid unnecessary aggravation. Unless you are an expert, I would only buy if there is an UNCONDITIONAL return policy. There are lots of threads (esp re: IGI and EGL reports) where return policies based on appraisal value not matching pricing are disastrous.


3. What do appraisers look at? Do they give an independent grade, or they just make sure the stone matches the GIA certificate?

There are some good threads on independent appraisers if you do a search. In my experience, they examine the stone first without looking at the cert, and may take measurements using a SARIN laser thingy to get the dimensions. Then they take a look at the cert. Assuming it matches, they talk to you about the values for the stone -- depending on what you ask for, they can give you the Rappaport list pricing, the insurance retail replacement value, or various other versions of the value.

Any input and comment is appreciated.

Good luck!