New Gemstone Auctions Old Pitfalls

[realru]

Long-time reader, first-time poster here! I'd like to express my gratitude to all the members of this forum for sharing a wealth of gem-related information here on a daily basis. Over the years, I've frequented this forum while expanding my own modest gem and jewelry collection. I've even made purchases from some of the members on LT. The shared information has been incredibly helpful to consumers like myself, often providing insights not available elsewhere.

Have you noticed the recent surge in gemstone auctions on Instagram and individual seller's websites? Previously, platforms like eBay and a few others offered avenues for gem vendors to sell their products through auction-like formats. These platforms have always attracted a mix of sellers, primarily from gemstone centers in Asia. However, I've recently observed a growing number of US-based gemstone vendors conducting their own auctions on Instagram and their personal websites. For instance, a gem cutter I like, from whom I've purchased several custom gems, now primarily engages in weekly Instagram auctions, reselling "native" cut gems or stones faceted by others. While I won't mention them by name, there are many other examples. It's obviously perfectly acceptable for dealers/cutters to expand or pivot their businesses from one format to another to boost sales or for other reasons. However, there's a common factor in all these auctions that I find potentially misleading. They typically feature a brief description, photos or videos, and an "estimated value" of gems offered for auction. Upon observing these auctions, it's almost always the case that the final bidding price is significantly lower—three, four, or even five times less—than the estimated value. The auction "winners" may feel they've snagged a fantastic deal by acquiring a gem for a fraction of the listed price. However, it's naive to assume that gem re-sellers are losing money, given that these auctions continue week after week. We all know it is difficult to value a gem, but in my opinion the quality of the auction gems fall significantly short from the value estimates assigned by the sellers.

Here's an interesting and illustrative example I noticed involving a long-standing and reputable rough vendor who has also jumped on the auction bandwagon. I've been searching for a cobalt blue spinel from a recent Mahenge, TZ find and came across an auction on Instagram for a "Top Quality Cobalt Blue Mahenge Spinel." The accompanying description was radiant, including phrases like "an absolute top gemstone in every way" and "color of a clear blue sky on a warm spring day." The estimated value for a 1.055ct stone was stated as $3,500-3,750. The description and estimated price suggested a top-quality cobalt blue spinel, similar to the neon Luc Yen material also found in Mahenge. Coming from a supposedly reputable US-based rough and gem dealer, this might seem like a confident stamp of approval. No certificate was provided, and there was no mention of any treatments, although it's known that nickel diffusion treatment exists for this material (as discussed in another thread and perhaps in Yuvonne's blog). However, the gem appeared dark even under studio lights, had a grayish modifier, and didn't resemble the top neon cobalt-blue material to me. Nevertheless, it was priced as if it were top-tier material. The auction concluded at around $600, which is more than five times lower than the lower end of the estimated range. Here is a screenshot of the Instagram auction for reference.


To my surprise, I came across the same exact gem (1.055ct) on the seller's website auction a few weeks later. I'm unsure if the winner of the previous (Instagram) auction didn't pay or returned the stone, or for any other reason, but there it was, listed again. I took another screenshot, which showcases the same images and similar high praises, including statements like "This gem is all the rage in spinel, and it's easy to see why!" and "Found in extremely limited quantities!" In is notable that the estimated value this time around was $1,500-1,600. This is three times lower than the value assigned to the gem by the same (super reputable) seller just a few weeks earlier on their own Instagram auction! Why such drop in estimated price if the seller is so reputable and highly versed in all thigs gems and pricing? Once again, the gem sold for approximately $500, which is three times lower than the “revised” estimate or more than six to seven times (!) lower than the original estimated value on Instagram.



Members of this forum are well aware that gem dealers often purchase stones in bulk from overseas and resell them with markups of 10 or even 20 times the purchase price, without much additional effort aside from taking photos. Obviously this experienced vendor did not suffer any financial loss from the auction, or they wouldn't still be in business. However, I'm uncertain if the winner got a good deal. With the proliferation of easy access to social media auctions, where it's simple to post captivating images under studio lights on the screens of thousands of people, many inexperienced individuals might be buying overpriced, low-quality gems while mistakenly believing they've got a steal at an auction. I'm curious to hear your thoughts, and my apologies for the lengthy first post!

 

[LilAlex]

Great post and documentation.

Since it is (presumably) an unmonitored auction -- looks like you just post your bids -- they could all be shadow bidders, sock puppets, family members, etc. You only need ONE interested party to bid against to drive it up. This happens all the time even on eBay.

I agree that these auction environments cause potential buyers to "hurry up" and skip the usual due-diligence steps of questioning the fidelity of the photos or the accuracy of the overly-poetic description. There are some IG sellers whom I follow almost purely for entertainment value.

 

[T L]

Your statement, “ many inexperienced individuals might be buying overpriced, low-quality gems while mistakenly believing they've got a steal…”. Is precisely why this forum exists. The unscrupulous practices you mention do not just happen on gem auction sites , but at retailers online, brick&mortar and home shopping channels

 

[Bron357]

It was, is and always will be “buyer beware”.
Im all for internet options allowing buyers to deal more directly with cutters BUT a fool and their money are easily parted. Sellers engage in all manner of “tricks” to peddle their wares, nothing new in this behaviour, the buyer has to educate themselves appropriately or they will be disappointed.
Ebay for all its flaws, at least enables buyers to see what else, how many and for how much a seller sold things for and what other buyers thought of the interaction. There is recourse with eBay if nothing arrives or is not as described (this can be a bit tricky). eBay can also be searched for past sales to provide benchmarks.

 

[T L]

It was, is and always will be “buyer beware”.
Im all for internet options allowing buyers to deal more directly with cutters BUT a fool and their money are easily parted. Sellers engage in all manner of “tricks” to peddle their wares, nothing new in this behaviour, the buyer has to educate themselves appropriately or they will be disappointed.
Ebay for all its flaws, at least enables buyers to see what else, how many and for how much a seller sold things for and what other buyers thought of the interaction. There is recourse with eBay if nothing arrives or is not as described (this can be a bit tricky). eBay can also be searched for past sales to provide benchmarks.

There’s still fake reviews on eBay and other gimmicks auctioneers use to sell inferior or “not as advertised” gems for high prices. That being said, if you know all the schemes and pitfalls, you can find some nice deals on eBay. However, the deals are not as they were 10+ years ago, and new recent advanced treatments make one avoid some gems at all cost, when in the past, they were “safer.”

 

[fredflintstone]

No one ever auctions top quality stones without a reserve, they'd lose their butt, big time.

And I must say dealers I know including myself when I was dealing do not mark up their stones 10 to 20 times, westerns dealers that is. Full blown retail does mark their stones up 4 to 10 times, but not internet dealers who are selling at western wholesale.

I wish gemstones were that cheap when you by parcels, and yes, they are cheaper by quantity, but nowhere that cheap, nowhere, not for higher quality stones.

 

[realru]

No one ever auctions top quality stones without a reserve, they'd lose their butt, big time.

That's precisely the point I want to emphasize. While these new Instagram auctions may not exhibit high-quality gems, the issue lies in the captivating descriptions and inflated "estimated values" that trusted sellers assign to these gems, potentially leading consumers astray. As far as I know, these auctions do not have a clearly defined reserve price.

I've observed that reputable gem dealers or cutters, who have established themselves as experts in the field and are now participating in these auctions, tend to provide favorable ratings for their lower-quality gems and attach significant price premiums to them. Consequently, consumers, driven by their trust in the seller, are inclined to bid higher. Due to this trust, many people may rely on the seller's expert opinion and the suggested price rather than trusting their own eyes. It's disheartening to witness stones with average color being labeled as "top neon" or "cornflower blue" with a corresponding price tag.

 

[musicloveranthony]

I can think of a couple vendors that fit the bill. One has told me he regularly eats losses (sometimes 4 digit losses) on his auctions but continues running them to try to build his follower base. I have seen some real poopers in his auctions, but I've also gotten some world class stones (like a -perfectly- cut Merelani green garnet) at an absurd discount. That vendor has been selling a mix of stones that he cuts (very well), one of his apprentices cuts (mixed results), and commercially cut stones.

There's a well known rough vendor who has been doing gem auctions the last year or so - with some really, really ugly stones that have the bonus of being poorly cut. I was duped by one of those. It was a purple spinel cabachon described with the same flowery, superlative language you described. It was photographed very misleadingly to look clear, clean, and open-colored. In the hand, it looks like a polished brownish rock - like a chewed up root-beer candy. Caveat emptor... I definitely learned the hard way there.

 

[fredflintstone]

That's precisely the point I want to emphasize. While these new Instagram auctions may not exhibit high-quality gems, the issue lies in the captivating descriptions and inflated "estimated values" that trusted sellers assign to these gems, potentially leading consumers astray. As far as I know, these auctions do not have a clearly defined reserve price.

I've observed that reputable gem dealers or cutters, who have established themselves as experts in the field and are now participating in these auctions, tend to provide favorable ratings for their lower-quality gems and attach significant price premiums to them. Consequently, consumers, driven by their trust in the seller, are inclined to bid higher. Due to this trust, many people may rely on the seller's expert opinion and the suggested price rather than trusting their own eyes. It's disheartening to witness stones with average color being labeled as "top neon" or "cornflower blue" with a corresponding price tag.

Retail (Brick and Mortar) value is always higher, much higher. I can't speak for these unnamed auctioneers you speak of, but the Spinel you showed, if real, no treatments, could go for $3500 to $1500 depending on the Brick and Mortar location, reputation, clientele, and how much the jeweler wants to ask. Markets are different all over the world for colored stones and the United States, and just like the internet, prices for colored stones are all over the place.

If you don't want to bid, then don't if you have reservations, and I'm not too thrilled with any dealers that auction off stones or buy it now that lists a retail prices to coerce buyers, but that is their option, as it is your option to opt out.

 

[fredflintstone]

I can think of a couple vendors that fit the bill. One has told me he regularly eats losses (sometimes 4 digit losses) on his auctions but continues running them to try to build his follower base. I have seen some real poopers in his auctions, but I've also gotten some world class stones (like a -perfectly- cut Merelani green garnet) at an absurd discount. That vendor has been selling a mix of stones that he cuts (very well), one of his apprentices cuts (mixed results), and commercially cut stones.

There's a well known rough vendor who has been doing gem auctions the last year or so - with some really, really ugly stones that have the bonus of being poorly cut. I was duped by one of those. It was a purple spinel cabachon described with the same flowery, superlative language you described. It was photographed very misleadingly to look clear, clean, and open-colored. In the hand, it looks like a polished brownish rock - like a chewed up root-beer candy. Caveat emptor... I definitely learned the hard way there.

I'm sorry you had a bad experience with the rough dealer and happy you had a good experience with the other vendor.

There are deals to be had out there for the savvy buyer and there are aquarium stones for the unexperienced, but I guess that is how one learns.

 

[realru]

I can think of a couple vendors that fit the bill. One has told me he regularly eats losses (sometimes 4 digit losses) on his auctions but continues running them to try to build his follower base. I have seen some real poopers in his auctions, but I've also gotten some world class stones (like a -perfectly- cut Merelani green garnet) at an absurd discount. That vendor has been selling a mix of stones that he cuts (very well), one of his apprentices cuts (mixed results), and commercially cut stones.

There's a well known rough vendor who has been doing gem auctions the last year or so - with some really, really ugly stones that have the bonus of being poorly cut. I was duped by one of those. It was a purple spinel cabachon described with the same flowery, superlative language you described. It was photographed very misleadingly to look clear, clean, and open-colored. In the hand, it looks like a polished brownish rock - like a chewed up root-beer candy. Caveat emptor... I definitely learned the hard way there.

It makes me wonder how he stays in business when he regularly eats four digit losses? Congrats on the garnet! There are some rare deals.

I also wonder why not return the “root-beer candy” rock since it does not look like the images or video? As far as I know there is nothing about no returns policy for these auctions from the U.S. based dealers.

 

[Voodoo Child]

It makes me wonder how he stays in business when he regularly eats four digit losses? Congrats on the garnet! There are some rare deals.

I also wonder why not return the “root-beer candy” rock since it does not look like the images or video? As far as I know there is nothing about no returns policy for these auctions from the U.S. based dealers.

He’s using this stones as a loss-leader. Rather than spend $5,000 on advertising to drum up customers, he’ll lose $5,000 in auctions in order to reel in customers who want a good deal. Those customers tell their family and friends, who (hopefully, to the dealer) will then potentially purchase from him because he has “amazing” deals. I have a friend who owns a small community market. He sells milk at a slight loss on purpose, because the people who come in for the cheapest milk in town also buy the bread, eggs, etc. that he has much better margins on.

 

[realru]

He’s using this stones as a loss-leader. Rather than spend $5,000 on advertising to drum up customers, he’ll lose $5,000 in auctions in order to reel in customers who want a good deal. Those customers tell their family and friends, who (hopefully, to the dealer) will then potentially purchase from him because he has “amazing” deals. I have a friend who owns a small community market. He sells milk at a slight loss on purpose, because the people who come in for the cheapest milk in town also buy the bread, eggs, etc. that he has much better margins on.

This point is closely related but somewhat separate from the issue I am observing with his auctions: a reputable seller describes stones in terms of top quality and assigns estimated values of the top quality material to unremarkable stones. This practice may mislead some customers into believing they are getting a great deal.

While it is true that some excellent gems may sell for less than the "typical retail" price (1 or 2 per auction), the majority of the offerings go for more than compatible stuff from other sellers because people take note of the estimated value and trust the seller to be accurate. See my example in my original post where a different seller dropped the estimated value of a spinel from $3,700 to $1,500 in a matter of weeks.

I have noticed dark garnets, gray tanzanites, or poorly cut washed-out sapphires with values of $1000+ or $2,000+ per carat being sold for a fraction of this price target. However, the reality is that these stones should be valued at $100-200 per carat to provide customers with more realistic values. I might be off with the actual numbers here because I am not taking specific examples, but they serve as an example of what I am witnessing.

 

[fredflintstone]

This point is closely related but somewhat separate from the issue I am observing with his auctions: a reputable seller describes stones in terms of top quality and assigns estimated values of the top quality material to unremarkable stones. This practice may mislead some customers into believing they are getting a great deal.

While it is true that some excellent gems may sell for less than the "typical retail" price (1 or 2 per auction), the majority of the offerings go for more than compatible stuff from other sellers because people take note of the estimated value and trust the seller to be accurate. See my example in my original post where a different seller dropped the estimated value of a spinel from $3,700 to $1,500 in a matter of weeks.

I have noticed dark garnets, gray tanzanites, or poorly cut washed-out sapphires with values of $1000+ or $2,000+ per carat being sold for a fraction of this price target. However, the reality is that these stones should be valued at $100-200 per carat to provide customers with more realistic values. I might be off with the actual numbers here because I am not taking specific examples, but they serve as an example of what I am witnessing.

Well, then please give this vendor or vendors names out so everyone here can avoid him or her, and also see for themselves. Otherwise, what is the point? You know?

 

[fredflintstone]

He’s using this stones as a loss-leader. Rather than spend $5,000 on advertising to drum up customers, he’ll lose $5,000 in auctions in order to reel in customers who want a good deal. Those customers tell their family and friends, who (hopefully, to the dealer) will then potentially purchase from him because he has “amazing” deals. I have a friend who owns a small community market. He sells milk at a slight loss on purpose, because the people who come in for the cheapest milk in town also buy the bread, eggs, etc. that he has much better margins on.

Another reason may be that the stone has been in inventory too long and it is better to sale at a breakeven or loss and reinvest the money into something that will sale.

Many dealers do this with stones that sit too long. They must have money flow to keep buying new inventory. No money in running a museum.

 

[realru]

Well, then please give this vendor or vendors names out so everyone here can avoid him or her, and also see for themselves. Otherwise, what is the point? You know?

I don’t think this is necessary as my points are clear without the vendor names. It’s easy to figure out the two I am talking about here. There are a few more sellers and cutters out there engaging in this type of auctions that I did not include.

 

[fredflintstone]

Another reason may be that the stone has been in inventory too long and it is better to sale at a breakeven or loss and reinvest the money into something that will sale.

Many dealers do this with stones that sit too long. They must have money flow to keep buying new inventory. No money in running a museum.

I don’t think this is necessary as my points are clear without the vendor names. It’s easy to figure out the two I am talking about here. There are a few more sellers and cutters out there engaging in this type of auctions that I did not include.

There is always two sides. Why would it hurt? Never assume everyone here knows what vendors you are speaking of. What is the harm naming them. You started this thread, I'm asking who they are?

 

[fredflintstone]

Since our friend will not give out this vendors name, in the interest of protecting members here, here is the link to the blue Spinel - https://gemdragonauctions.com/products/mahenge-spinel-37?customer_posted=true#contact_form

As it turns out, I'd be very wary of this vendor, he/she shows a color change blue to green Zircon for auction. In four decades of having been a colored gemstone dealer, plus the years after retirement, I have never seen a color change blue to green Zircon such as this. Really cannot say I have ever seen any cc blue to green Zircon, no matter how small or great a true change. So, the biggest problem here is actually worrying you will get a fake, a synthetic, much more than buying a similar stone somewhere else for a comparable price.

Beware!

Burmese Zircon - Color Change

Stunning rare Color Change Burmese Zircon! This incredibly gorgeous stone has a distinct color change due to the presence of rare earth elements. Blue turns to slightly purplish-blue in daylight. Then with incandescent light it turns a beautiful bluish-green. Straight from Burma and unlike any...

gemdragonauctions.com

 

[marymm]

I don’t think this is necessary as my points are clear without the vendor names. It’s easy to figure out the two I am talking about here. There are a few more sellers and cutters out there engaging in this type of auctions that I did not include.

I do understand your words but I am a long-time PS member who joined primarily to participate in the CS forum and I have no clue which vendors you are talking about.

Pricescope is a consumer-oriented community -- I do not understand these kinds of threads that regularly pop up in CS and RT that facially seem to provide helpful consumer information but in fact are focused on protecting vendors that the OP is identifying as embellishing/exaggerating/misrepresenting consumer goods.

Enough already -- these vendors are in the public selling goods to your family, friends, neighbors, communities, fellow PSers, lurkers -- if it is important enough to write up and warn others about this "trend," then, please, identify the vendors on which you are substantiating your auction insights.

 

[fredflintstone]

As it turns out my curiosity got the best of me and I googled blue to green color change Zircon and found this article by the GIA. Though no where near as a vivid intense color change (stone in article) there have been some cc Zircons found in Burma.

I did find some others that had a vivid change like the auction color change Zircon from above on auction, but I would be very skeptical as to if the stone actually looked like that in person or is a fake.

Here is the GIA article - https://www.gia.edu/gems-gemology/fall-2021-labnotes-zircon-color-change-behavior

 

[realru]

There is always two sides. Why would it hurt? Never assume everyone here knows what vendors you are speaking of. What is the harm naming them. You started this thread, I'm asking who they are?

I do understand your words but I am a long-time PS member who joined primarily to participate in the CS forum and I have no clue which vendors you are talking about.

Pricescope is a consumer-oriented community -- I do not understand these kinds of threads that regularly pop up in CS and RT that facially seem to provide helpful consumer information but in fact are focused on protecting vendors that the OP is identifying as embellishing/exaggerating/misrepresenting consumer goods.

Enough already -- these vendors are in the public selling goods to your family, friends, neighbors, communities, fellow PSers, lurkers -- if it is important enough to write up and warn others about this "trend," then, please, identify the vendors on which you are substantiating your auction insights.

There are several reasons why I prefer not to name them, including my intention to avoid providing advertisement to the vendors, and absolutely not because I want to "protect' any given vendor. I also don't want to single out the two vendors I am referencing here because the issue with these Instagram auctions is more widespread as I indicated earlier.

My post aims to be helpful to the community here as I share my observations. I am also curious to hear others' thoughts and observations, without engaging in unnecessary confrontation.

 

[737liz]

Not to derail the thread but I have a green to purple zircon from Burma. It can't be anything other than zircon, unless my jeweler, his gem guy, and I are all wrong. I bought it as a curiosity from a stall in Yangon. It generally looks like a washed out lilac or a medium green. But under the right lights, it goes from tsav green to perfect amethyst. And I know blue ain't purple... but that blue to green could be legit...legit with the right lighting.

 

[fredflintstone]

Not to derail the thread but I have a green to purple zircon from Burma. It can't be anything other than zircon, unless my jeweler, his gem guy, and I are all wrong. I bought it as a curiosity from a stall in Yangon. It generally looks like a washed out lilac or a medium green. But under the right lights, it goes from tsav green to perfect amethyst. And I know blue ain't purple... but that blue to green could be legit...legit with the right lighting.

Yes, I posted up a GIA article on it. The Zircon in the article was not as intense, but washed out.

I did blow up the pictures from the vendor and seen DR, but, I'm still not convinced that these colors are as perfect as they seem, but I have been wrong before. If so, a very, very rare stone(s), because this vendor has more than one. I'm all my time selling gemstones, I have not run across these, but apparently they do exist, My caveat is if they look like the GIA's specimen or are as intense as the pictures suggest, but I'm not buying one to find out.

 

[PrecisionGem]

He’s using this stones as a loss-leader. Rather than spend $5,000 on advertising to drum up customers, he’ll lose $5,000 in auctions in order to reel in customers who want a good deal. Those customers tell their family and friends, who (hopefully, to the dealer) will then potentially purchase from him because he has “amazing” deals. I have a friend who owns a small community market. He sells milk at a slight loss on purpose, because the people who come in for the cheapest milk in town also buy the bread, eggs, etc. that he has much better margins on.

I can't picture this being the case. Loosing thousands on a stone, is much different than $0.20 on some milk. With gems, it's not that you could have sold it for more, but it's the price you paid for the rough. You don't get a rough stone that can cut a $5000 finished gem cheap. Good rough is very expensive. I've been out in the bush in Africa, and the rough is still expensive.

Having been in this business for over 20 years, I have yet to see a deal that's too good to be true, actually be true.

 

[fredflintstone]

I can't picture this being the case. Loosing thousands on a stone, is much different than $0.20 on some milk. With gems, it's not that you could have sold it for more, but it's the price you paid for the rough. You don't get a rough stone that can cut a $5000 finished gem cheap. Good rough is very expensive. I've been out in the bush in Africa, and the rough is still expensive.

Having been in this business for over 20 years, I have yet to see a deal that's too good to be true, actually be true.

Most likely he did not lose thousands of dollars but wrote he did. I'm 99% positive of that.

I can believe he had a stone on auction that he had listed for a buy it now price of say, $1000 to $500 that sat in inventory for a long time and needed to liquidate the stone. This does happen, but even under $1000, many would have a reserve, but there are times you must roll the dice and hope you recoup your money you paid on a stone. But not 1000's of dollars, nope.

 

[realru]

I can't picture this being the case. Loosing thousands on a stone, is much different than $0.20 on some milk. With gems, it's not that you could have sold it for more, but it's the price you paid for the rough. You don't get a rough stone that can cut a $5000 finished gem cheap. Good rough is very expensive. I've been out in the bush in Africa, and the rough is still expensive.

Having been in this business for over 20 years, I have yet to see a deal that's too good to be true, actually be true.

Thank you for your valuable insight, Gene. I'm curious about the considerations that gem dealers take into account when organizing auctions, given the significance of trust and reputation in the industry. It appears that one strategy to mitigate substantial losses is to potentially inflate the value estimates of lower quality gems and rely on the belief of followers to drive up bidding prices. However, I question whether these losses can truly be justified as a means to build a loyal following.
Moreover, when people come to realize that the estimates are being inflated, trust tends to wane.

 

[musicloveranthony]

I also wonder why not return the “root-beer candy” rock since it does not look like the images or video? As far as I know there is nothing about no returns policy for these auctions from the U.S. based dealers.

The no-reserve auctions are final

 

[realru]

The no-reserve auctions are final

While the auction terms and conditions on this particular seller's website do not mention returns, the Q&A section states that a stone can be returned within 7 days if it does not meet expectations. See screenshots below.

However, the returns policy is not mentioned in any of the Instagram auctions. In the U.S., buyers are protected by certain consumer safeguards offered by credit cards or PayPal, which may cover them in situations where an item does not match its description. I am unsure whether banks or PayPal distinguish between purchases made through auctions or standard transactions. I do not claim to know a lot about the nuances of the protections, but I assume that sellers are well aware of it.

One advantage of purchasing gems from domestic vendors is the availability of consumer protection and the ease of returns if the gems do not meet expectations. This is why we often pay a premium to these sellers. Some of us take the risk of buying overseas to acquire better items at significantly lower prices. However, this approach yields varying results, mostly positive, but occasionally disastrous, as evidenced by the threads in this forum. It appears to me that certain domestic sellers utilizing Instagram auctions aim to bypass or disguise the existing consumer protections in place.

 

[musicloveranthony]

It appears to me that certain domestic sellers utilizing Instagram auctions aim to bypass or disguise the existing consumer protections in place.

I wish this weren't the case

 

[fredflintstone]

While the auction terms and conditions on this particular seller's website do not mention returns, the Q&A section states that a stone can be returned within 7 days if it does not meet expectations. See screenshots below.

However, the returns policy is not mentioned in any of the Instagram auctions. In the U.S., buyers are protected by certain consumer safeguards offered by credit cards or PayPal, which may cover them in situations where an item does not match its description. I am unsure whether banks or PayPal distinguish between purchases made through auctions or standard transactions. I do not claim to know a lot about the nuances of the protections, but I assume that sellers are well aware of it.

One advantage of purchasing gems from domestic vendors is the availability of consumer protection and the ease of returns if the gems do not meet expectations. This is why we often pay a premium to these sellers. Some of us take the risk of buying overseas to acquire better items at significantly lower prices. However, this approach yields varying results, mostly positive, but occasionally disastrous, as evidenced by the threads in this forum. It appears to me that certain domestic sellers utilizing Instagram auctions aim to bypass or disguise the existing consumer protections in place.

PayPal does cover all transactions made by invoice or money sent for merchandise in "send money," but buyer must win his or her case. I've been through this quite a few times as a past gemstone dealer. I always won, but some buyers do not win for whatever reasons, legitimate or not.

Most of the oversea dealers do not want to send an invoice or be sent money for merchandise through PayPal because they do not want to pay the fees associated with it. 3.99%, though some claim 4.99%, and for the fact that you cannot come back on them for a refund through PayPal.

I suggest if they balk at sending an invoice, pay their PayPal fee and if they still refuse, move on.