Opinion on a ring for sale

[fchida]

What do you all think about this ring? A Co-worker of mine is selling it for $15,000, he has an appraisal report which shows value of 17,100. It is brand new, engagement did not go through, he has been trying to sell it for 6 months. Did not like getting low ball offers from pawn shops and jewelry stores. It has a 2.15 stone, J, VS2, Excellent Cut and no fluoro with GIA report. The ring looks brand new all this time it has been in the safe deposit box. Total carat weight is 3.84. Please give your opinions as I am in the market for a ring. I showed this ring to an appraiser and agrees with the valve and thinks it is a good deal, I like this ring design. He is thinking about listing it at IdonowIdont.com. Just did not want to pass a good deal. The ring size I want is 5 and it is 4.5, so I can resize it. This ring looks great in person pictures don''t do justice to it. HCA analysis gave me a 4.5 for the center diamond.

 

[denverappraiser]

Date: 1/20/2010 6:50:04 PM
Author:fchida
I showed this ring to an appraiser and agrees with the valve and thinks it is a good deal,.

Hi Firoze,

Read carefully the report from your appraiser and discuss the details with him/her. A trained and independent professional who carefully inspected the piece in person is FAR more valuable than what we can do from a photograph here. Make sure you understand their definition of value and what marketplace they are describing. It may or may not be what you are expecting. Both should be included in the body of the report.

We don't know much about the details of that center stone, especially with regard to cutting, but comparables seem to be selling for between $11k-$14k retail from the dealers here.

I can't imagine sizing will be any problem at all.

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

 

[fchida]

Thanks Neil, the appraiser only gave me a verbal he was going to charge me more for a written report, he said if I make the final decision he can do that. the price of $15000 is for the ring only he said he will sell the wedding band for another $2000. it is appraised at 3,100. 7 small diamonds total wt is .92. Total cost for ring +wedding band is $17,000. Here are more pictures. It is all set in platinum both ring and wedding band. Thanks for your time and help.

 

[fchida]

Here is another picture. Thank you.

 

[fchida]

Neil, the cut, polish and symmetry are all excellent according to the GIA report. Thanks

 

[denverappraiser]

Date: 1/20/2010 7:06:38 PM
Author: fchida
Thanks Neil, the appraiser only gave me a verbal he was going to charge me more for a written report, he said if I make the final decision he can do that. the price of $15000 is for the ring only he said he will sell the wedding band for another $2000. it is appraised at 3,100. 7 small diamonds total wt is .92. Total cost for ring +wedding band is $17,000. Here are more pictures. It is all set in platinum both ring and wedding band. Thanks for your time and help.

Pay him and get the full report. You’re betting 17 bills on his opinion, the least he can do is give one that’s the result of a full careful inspection, diligent research, put in writing, and signed. Anything less is doing yourself a disservice. Again, make sure he/she understands the question being asked. The most common appraisal question is what would it cost to custom make a piece like that at a ‘retail’ jewelry store. This strikes me as unlikely to be what you need to know since that’s not the issue at hand. What is an appropriate price to pay for this in a secondary market like the one you mentioned (idonowidont.com)? Discount your purchase price from that by a little bit since they don’t have to pay the IDNID fees when they sell to you. Offhand that sounds like a decent enough deal on a new ring but an offhand opinion of what a new ring like that would cost isn't what you want or need. If your appraiser doesn’t understand the question, hire a different appraiser. 'Free' opinions are often worth far less than they cost.

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

 

[jet2ks]

Just FYI, normally diamonds resell for 30-50% of retail. Your co-worker is trying to get full retail out of the ring.

Just as comparison, here is a better cut diamond
http://www.jamesallen.com/diamonds/J-VS2-Ideal-Cut-Round-Diamond-1267128.asp

With a similar setting:
http://www.jamesallen.com/engagement-rings/settings-with-sidestones/ring/item_58-1908.asp

These as a combo would cost less than what he is trying to sell a used ring for.

He might feel he is getting lowballed by the pawn shops, but if he really payed ~$15-17K, then resale value for the ring is $5-9K.

 

[Upgradable]

Date: 1/20/2010 7:16:11 PM
Author: jet2ks
Just FYI, normally diamonds resell for 30-50% of retail. Your co-worker is trying to get full retail out of the ring.

Just as comparison, here is a better cut diamond
http://www.jamesallen.com/diamonds/J-VS2-Ideal-Cut-Round-Diamond-1267128.asp

With a similar setting:
http://www.jamesallen.com/engagement-rings/settings-with-sidestones/ring/item_58-1908.asp

These as a combo would cost less than what he is trying to sell a used ring for.

He might feel he is getting lowballed by the pawn shops, but if he really payed ~$15-17K, then resale value for the ring is $5-9K.

Good call, Jet!!

Yep, you''re not getting the "deal" you''re expecting. We can help you find better for that $$

 

[stone-cold11]

Thritto.

 

[MichelleCarmen]

Hi,
Personally, I wouldn''t spend any amount on a diamond that scores only 4.5 on the HCA. . .but then again I''m picky. I would go down in size in order to have a better cut diamond!

Looks like from the links jet2ks provided you should find an impeccable diamond within your budget.

 

[marcy]

Date: 1/20/2010 7:43:40 PM
Author: MC
Hi,

Personally, I wouldn''t spend any amount on a diamond that scores only 4.5 on the HCA. . .but then again I''m picky. I would go down in size in order to have a better cut diamond!


Looks like from the links jet2ks provided you should find an impeccable diamond within your budget.

Ditto.

 

[swingirl]

Your co-worker is selling this at very close to the price you could buy one brand new. Even though his is basically "new" you aren't getting a chance to pick your own specs, compare stones, or get any sort of return or upgrade benefit like you would if you bought it from a vendor. I am guessing he didn't pay more than the appraisal price so where is the big benefit to you? You would be paying close to retail price for a used ring.

A stone that scores that low on the HCA probably isn't a great performer.

I would also have some concern over whether the stones from the ering would rub against the stone from the band. Can't really tell from the photo but you don't want diamonds rubbing against each other.

 

[Dancing Fire]

Date: 1/20/2010 6:50:04 PM
Author:fchida
What do you all think about this ring? A Co-worker of mine is selling it for $15,000, he has an appraisal report which shows value of 17,100. It is brand new, engagement did not go through, he has been trying to sell it for 6 months. Did not like getting low ball offers from pawn shops and jewelry stores. It has a 2.15 stone, J, VS2, Excellent Cut and no fluoro with GIA report. The ring looks brand new all this time it has been in the safe deposit box. Total carat weight is 3.84. Please give your opinions as I am in the market for a ring. I showed this ring to an appraiser and agrees with the valve and thinks it is a good deal, I like this ring design. He is thinking about listing it at IdonowIdont.com. Just did not want to pass a good deal. The ring size I want is 5 and it is 4.5, so I can resize it. This ring looks great in person pictures don''t do justice to it. HCA analysis gave me a 4.5 for the center diamond.

and now you know reason why he''s unable to sell this ring for the past months.

 

[yssie]

Date: 1/20/2010 9:04:43 PM
Author: marcyc

Date: 1/20/2010 7:43:40 PM
Author: MC
Hi,

Personally, I wouldn''t spend any amount on a diamond that scores only 4.5 on the HCA. . .but then again I''m picky. I would go down in size in order to have a better cut diamond!


Looks like from the links jet2ks provided you should find an impeccable diamond within your budget.

Ditto.

+1

 

[Lorelei]

Date: 1/20/2010 7:16:11 PM
Author: jet2ks
Just FYI, normally diamonds resell for 30-50% of retail. Your co-worker is trying to get full retail out of the ring.

Just as comparison, here is a better cut diamond
http://www.jamesallen.com/diamonds/J-VS2-Ideal-Cut-Round-Diamond-1267128.asp

With a similar setting:
http://www.jamesallen.com/engagement-rings/settings-with-sidestones/ring/item_58-1908.asp

These as a combo would cost less than what he is trying to sell a used ring for.

He might feel he is getting lowballed by the pawn shops, but if he really payed ~$15-17K, then resale value for the ring is $5-9K.

Absolutely.

 

[fchida]

Thank you for all your advice, Much appreciated.

 

[oldminer]

From a cold, business-like perspective, you are in the fortunate position. 1. You need a diamond ring, 2. Your friend does need the ring. 3. The price being asked does seem acceptable if all the paperwork is correct. 4. You have sufficient money to make the purchase.

Now, the real issue is, how many other folks are clamouring to buy the ring? I think you are likely the only person willing to buy it for a fair price versus pawn shops who definitely will want it for way, way less money. You are in charge if you want to make the deal, I'd suggest you play hard ball. Tell your buddy that you really want it but that you want to stick to a budget that you have in mind. Suggesting $9K as a starting point might be about right and work very hard not to go up. Remember, he has not had a decent offer yet and your offer is likely the only one with a semblance of fairness he will easily get. Unless you are inclined to be charitable, keep it business first and cut a deal which gives him the most he has been offered, yet keeps the cost to you as low as possible. You can certanly inquire what has been the best price offered so far. He may not want to tell you, he may lie a bit, or he may tell you the truth. Don't believe everything that may be said. If the information is useful to you, then it is to your advantage. The buying of jewelry at this level is an interesting, somewhat difficult exercise, but it can work in your favor.

Before you even make any offer, check out all the paperwork and the stone with an expert. Don't rely on trust and faith. Pay for the work to be done by someone of your own choosing. Once you make the offer to buy, be truly ready to pay and show your sincerity. Put the burden on the seller to make a difficult decision. An individual who wishes to sell an already made ring is almost always going to take a fairly large loss. You might as well be the beneficiary and at the same time be the one who offered the most.

 

[Dreamer_D]

Date: 1/21/2010 6:32:00 AM
Author: Lorelei

Date: 1/20/2010 7:16:11 PM
Author: jet2ks
Just FYI, normally diamonds resell for 30-50% of retail. Your co-worker is trying to get full retail out of the ring.

Just as comparison, here is a better cut diamond
http://www.jamesallen.com/diamonds/J-VS2-Ideal-Cut-Round-Diamond-1267128.asp

With a similar setting:
http://www.jamesallen.com/engagement-rings/settings-with-sidestones/ring/item_58-1908.asp

These as a combo would cost less than what he is trying to sell a used ring for.

He might feel he is getting lowballed by the pawn shops, but if he really payed ~$15-17K, then resale value for the ring is $5-9K.

Absolutely.

Exactly.

 

[Bella_mezzo]

I would not buy it. As others have shown, you can get something much better for that amount of money.

 

[oldminer]

Primarily you are getting expected responses from knowledgeable consumers and experts who just don''t want you to take a risk that they would not be willing to take. I can''t say I blame them as buying second hand items has several risk factors not associated with buying from a trusted vendor. Also, the potential for having a choice of many to select from is nil. Either this ring is just right for you or abandon the idea. With your potential budget, you may well be able to buy virtually risk free from a regular source and have all the selection one can dream about.

My experience is much more oriented from the buying aspect than many here, so I know how to accept the inherent risks and understand the benefits for taking such risks. Most consumers who give advice are correct in being very cautious as few could possibly feel good about the risks that are part of buying in the second hand market. You are the one who makes the decision and I hope you are weighing your options carefully before pulling the trigger or the plug. Good Luck!

 

[Dreamer_D]

Date: 1/21/2010 1:29:38 PM
Author: oldminer

Primarily you are getting expected responses from knowledgeable consumers and experts who just don''t want you to take a risk that they would not be willing to take. I can''t say I blame them as buying second hand items has several risk factors not associated with buying from a trusted vendor. Also, the potential for having a choice of many to select from is nil. Either this ring is just right for you or abandon the idea. With your potential budget, you may well be able to buy virtually risk free from a regular source and have all the selection one can dream about.

My experience is much more oriented from the buying aspect than many here, so I know how to accept the inherent risks and understand the benefits for taking such risks. Most consumers who give advice are correct in being very cautious as few could possibly feel good about the risks that are part of buying in the second hand market. You are the one who makes the decision and I hope you are weighing your options carefully before pulling the trigger or the plug. Good Luck!

I would actually support him buying the diamond if he had a full appraisal by a qualified independent appraiser *and* he paid fair market value for the diamond, which is offered on the private second-hand market. I don''t think that the selling is asking fair larket value though, given the realities of the market he is trying to sell within.

 

[oldminer]

If the person who asked the question wants to buy a second hand item, I am trying to give them advice on how to go forward. What they need is a warning about the risks and limitations and also some basic knowledge of how to begin bargaining. There is zero reason to pay an "asking price", especially one which is incorrect , too high. This ring may not be the "right" one regardless of how high or low the price is for this person. They should not fall victim to a low price and buy a ring that they really don''t want to own. There are so many alternatives if price alone is not the entire consideration.

Using a description of the price to be paid for such an item as "Fair Market Value" indicates that this advice is not being given by a person who can properly direct you about this terminology. FMV is a very specific IRS term and in my opinion, you can buy this item for below FMV and still be fair with the seller and even more fair to yourself.