OEC appraisal

[sugarski]

I just had my new 1.94 N OEC appraised by a seemingly very qualified PS appraiser. She told me it was actually a transitional stone and listed it as an "Old European Transitional Cut". She also valued it at about $250 less than I paid. For insurance purposes, is this OK? It's this stone, which to me is definitely an OEC, albeit a very symmetrical one: http://www.loveaffairdiamonds.com/sold-1-94ct-old-european-cut-diamond-ags-n-vs2/

Thoughts?

 

[denverappraiser]

Pricing is tricky. Insurance valuation is about funding for replacement, and that would be one tricky stone to replace. The usual rule is that the replacement company must meet or exceed the specs provided offset by downward pressure to not exceed by much because it raises the price. It's a two way push driven by the lab papers and the description section of the appraisal and there are NOT dozens to choose from in the marketplace. Something tells me that raising the budget would help but this is what you hired the appraiser for. Ask he how she came to her value conclusion, tell her what you're seeing in the market place, and get her advice. She may or may not do what you want but she should be prepared to explain her thinking.

 

[sugarski]

denverappraiser, thank you so much! I just emailed the lady and asked exactly what you said to ask. I'll let you know what she says.

I agree it would be a tricky stone to replace- imo, the symmetry, light return and faceting are fairly special and it would be great if the appraisal somehow took that into consideration.

Do you think it's a transitional stone? (if you feel like answering)

 

[denverappraiser]

I would probably call it a Euro. Why? Because that's what the lab called it. Replacement is with 'like kind and quality', and one of the qualities is that it includes paperwork where a respected lab called it a Euro.

AGS and GIA have different definitions of this and I would venture to guess that one of the reasons this particular stone has AGS paper is this very issue. I'm guessing GIA would have called it a Circular Brilliant. Not too long ago they would have called it a Round Brilliant and assigned it a crappy cut grade because it doesn't look like most other RBCs. That's obviously an injustice, and it's the reason they changed the rules, but the name lacks marketing panache and it's a catch-all category that includes some definite dogs. If I had been involved in the selection, I probably would have chosen AGS too.

 

[sugarski]

Thanks again. So... what I still don't quite get is, if I do need to replace the stone, will I have trouble getting the insurance co. to replace with an OEC? Gosh I really hope this never happens. LOL.

 

[denverappraiser]

Yes, it'll be troublesome if this comes up for replacement. How it plays out will depend on the replacement company and your insurer. Unfortunately there's no easy way to nip that up front. It's a lot easier with more mainstream kinds of goods but, by all means, buy what you like. This is the insurers problem, not yours. That AGS document will help. With most of the companies you get a fair amount of input into who the replacement company will be and a good place to start is with the original seller.

 

[sugarski]

Wow, Neil, that was quick! Thank you again for your help! I'll be in contact with the lady and see what she says.

PS, I hope your name is Neil...? I thought I saw it was, and now I can't find it again, so if that's not your name I apologize!

 

[denverappraiser]

Wow, Neil, that was quick! Thank you again for your help! I'll be in contact with the lady and see what she says.

PS, I hope your name is Neil...? I thought I saw it was, and now I can't find it again, so if that's not your name I apologize!

Yes, my name is Neil, and I'm glad I could help. Congratulations on a beautiful stone.

 

[sugarski]

Aw, thank you!! I am so happy with it!

 

[sugarski]

Just an update: I did just as you suggested, emailed the appraiser. Finally got this back: "For your loose diamond, I rang one of the largest old cut dealers in the country and got a retail value from him. This was in addition to checking several other guides and trade sources. I'm wondering how much you paid for it."

IOW, she didn't pull comps or make any adjustment for how the stone's make affects pricing.

Now what do I do? LOL