Lifetime Trade In - Realistic or Wishful thinking?

[talen316]

Hi everyone,

I realize this is a very hypothetical question and the answer ultimately hinges on the actual condition of the stone at the time of a lifetime trade-in, but…

I’m purchasing a princess stone for my DW from a very reputable PS vendor that offers a customer friendly lifetime trade-up policy. However, even with the documented concerns regarding PR durability aside, I can’t help but feel that the odds are probably against us in terms of having a “tradable” diamond after even a few years of daily wear under normal conditions.

Not that we would be looking to make a trade up anytime in the foreseeable future, but the idea of being able to take advantage of this at some point is definitely of interest. Just wondering what others have experienced when attempting to trade up after several years of normal wear & tear and how willing their vendor was to take back the stone for a trade up?

Maybe I''m being overly pessimistic about this, but I can''t help to think that even with exercising reasonable caution & care combined with normal wear/tear on the stone, the odds are against us that we''ll have a stone that will be considered to be in trade-in condition even after just a few years. Seems that perhaps this type of policy may be more oriented towards the customer who may have quickly realized after initial purchase that their significant other prefers a different shape, size, etc or for the person that may wear the stone only on occasion?

Again, I realize there are a lot of factors that come into play here and I''m not challenging the normal terms/conditions of this type of policy (ie. rejection for chipped/broken corners, other alterations, etc.)... just curious to know what everyone else thinks and may have experienced...

 

[kcoursolle]

I think the lifetime trade in is quite possible. Many here have used it after a few years time. It is very rare that chips should happen that might impair the trade in policy. Your insurance policy should cover you in this instance...

 

[denverappraiser]

Diamonds actually hold up pretty well to normal wear and tear. It’s not unusual as an appraiser to see a stone that looks just like it did when the cutter finished working their magic 100 years later.

Assuming that you get proper documentation at the front end, damage that’s sufficient to void a trade-up policy would probably be a covered loss under most insurance policies.

Obviously the fine print in the trade up program is an important issue and they vary quite a bit from dealer to dealer but ‘wear and tear’ isn’t usually a problem. 30 years down the road, you may not like the deal anymore because they’re trading in at 30 year old prices but that’s an accounting problem, not a gemological one. You are, of course, also betting that the store will still be around in 30 years. Any ‘lifetime’ offer comes with a concern about who’s lifetime is being discussed.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Rhino]

Good question talen. I can't speak for others but concerning our own firm if a client has a diamond they want to trade and assuming there is wear and tear on it that we see would alter the original polish grade it received at the time of purchase, we would still take it back on a trade in with perhaps one stipulation. They cover my cost to put it back in original condition. This can generally be done with a simple repolishing of the diamond which costs roughly $150-$250 per carat depending on the factory and weight of the diamond. We've repolished diamonds that were cut back in the 1800's with serious wear and tear on them to bring them up to speed with little cost involved.

If the diamond was damaged beyond what a simple repolishing could fix that's where insurance comes into the picture becuase then you'd be talking replacement of a damaged item which should be covered by your insurance.

All the best,

 

[talen316]

Thanks everyone for your input!

This helped clarify my uncertainty regarding acceptable wear & tear and what might factor into a merchan''t decision to take back a diamond on a trade up.

 

[DiamondExpert]

Neil and Rhino both make good points - It''s important to emphasize that each retailer with a trade up policy has a different set of conditions - sometimes even for the same brand name stones!

So make sure you understand the details of the policy with whomever you decide to work with.

I think that most retailers here are not out to make life difficult for clients, but are willing to find a way to make the best of any given situation.