Jewelry Store Bankruptcy

[caribqueen]

In light of the current climate, I have a feeling that we''re going to be seeing more of this in 2009. Does anyone have any input on how to work around something like that, totally out of the customer''s control? Are there certain kinds of companies that are less likely to go out of business? It makes me nervous, because even if you do buy the engagement ring or wedding band, then if the company goes out of business, then the warranty no longer exists. Then what?

Is anyone else concerned about this?

 

[Todd Gray]

Date: 1/21/2009 12:50:47 PM
Author:caribqueen
In light of the current climate, I have a feeling that we''re going to be seeing more of this in 2009. Does anyone have any input on how to work around something like that, totally out of the customer''s control? Are there certain kinds of companies that are less likely to go out of business? It makes me nervous, because even if you do buy the engagement ring or wedding band, then if the company goes out of business, then the warranty no longer exists. Then what?

Financial Woes are a concern with any business venture, but are certainly more in the forefront of the minds of many people now than perhaps a year or two ago. The nice thing about diamonds is that they are a measurable commodity and thus the value of the item purchased can be verified as can the quality prior to purchase or shortly thereafter by consulting the expertise of an independent Graduate Gemologist or Certified Appraiser. Note "for the record": I did not just say that ''diamonds are a commodity'' because that would be against the party line - you just think that''s what I said.

Thus if you purchase a diamond which is lab graded by the AGS as weighing 1.10 carats and VS-1 in clarity and D in color with negligible fluorescence with AGS Ideal 0 polish, symmetry, proportions and visual performance and you paid "X" for it and consulted the services of an independent gemologist appraiser who confirmed that the diamond purchased was accurately described on the lab report and was worth what you paid for it - what difference does it matter if the jewelry store files for bankruptcy protection while it reorganizes itself and/or goes out of business completely?

Diamonds truly require little, if any, warranty service... Okay, the setting might, however the "warranty" issued by many retail jewelers is hardly worth the paper it is written on to begin with. I can''t tell you how many insurance claim estimates I have provided over the years for lost diamonds which should have been covered under in-house warranty contracts issued at the time of purchase by retail jewelry stores that ended up going through their homeowners insurance because the jewelry store found a way to worm out of the perceived obligation. For that reason, I strongly recommend obtaining full spectrum insurance for valuable jewelry items through a reputable insurance company.

Okay, so the store closes and the warranty is void... You might need a prong tightened, etc. but the reality is that another jeweler in the area is likely to be able to provide that service for you at a reasonable rate. I think it reasonable to assume that when one company goes out of business, somebody else will pop up within a reasonable distance to fill in the gap. With regards to designer lines, the item can always be shipped to the designer for service - most designers require this to occur anyway, the local jeweler was just acting as a conduit.

 

[caribqueen]

Todd Gray,

Thanks very much for helping to put my mind at ease. Now my BF and I will just have to hope that none of the wedding services/venues wind up in any trouble. What a time.

 

[amyjokerette]

It makes me wonder what would happen for those customers, like myself, with upgrade options for later down the road. Scary and sad!! I had hoped 20 years from now I could upgrade and trade in for 100% my purchase price! Lets hope it doesn''t come to that!

 

[neatfreak]

Date: 1/21/2009 3:19:24 PM
Author: caribqueen
Todd Gray,


Thanks very much for helping to put my mind at ease. Now my BF and I will just have to hope that none of the wedding services/venues wind up in any trouble. What a time.

That is what wedding insurance is for.

 

[diamondseeker2006]

As Todd said, a warranty by the jeweler is really meaningless. Be SURE you get a separate insurance policy or rider on the ring to cover it in case of damage, loss, theft, etc. Many of us here ordered rings from vendors/jewelers out-of-state, so the maintenance part was not even a consideration as any jeweler can clean and polish rings and tighten prongs.