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Over Inflated E-tailers Valuation Letter

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Mar 15, 2012
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hello again ps,

well, since my diamond purchase from wf last week, everything has been a very positive learning experience so far. through information on ps and asking you all for your opinion and advice i was able to choose an awesome aca 1.31ct g/vs2 diamond. i am still in the process of choosing for a platinum solitaire setting; i am still debating between a 4 prong or a tension ring.

yesterday, my choice of picking the perfect diamond for my wife was confirmed by an appraisal i had done from a well reputable independent appraiser in the washington d.c. area. the question that i am scratching my head over is that wf provided me with all the necessary paperwork with my diamond. this paperwork included a valuation letter from wf's contracted, yet, independent appraiser who looks at all diamonds sold by wf and before they are sent to the respective buyer. the letter essentially stated that the estimated weight of the diamond and the diamond was being shipped to me in perfect condition. the last sentence of the letter placed a dollar amount that he valued the diamond to be worth. his apprised valued amount was $9.1K over my purchase price. the appraisal i had performed yesterday in d.c. was approximately $7K less less than the stated amount on the valuation letter and it was only $2K more than i actually paid for my diamond. needless to say i was very disappointed about this. when i questioned the appraiser, he explained to me in a round-about way, that the valuation letter was was essentially over inflated to make buyers feel good that he/she got a great buy and that the stated amount on the letter is was meaningless.

so what should i think or do about this situation? as i stated, the diamond is really an awesome and my wife and both love the diamond. has any other buyers experienced the same situation? should i make a long distance ph call and discuss this with the appraiser on the valuation letter? should i discuss this with my diamond consultant at wf? should i discuss this matter again with my independent appraiser in more detail?

please advise.

thank you.
 
It is just common practice and I always ignore them. There is nothing to discuss. Your diamond is worth what you paid and not a penny more. You could replace it tomorrow for approximately the same price you paid. Sounds like you had a good appraiser!!! I just always use my sales receipts to insure. It hurts no one but you to pay insurance premiums based on inflated insurance appraisals.

Once you decide on a setting, you probably want to contact Jeweler's Mutual who are the only ones I know of who will insure a diamond while being set. You can provide the diamond appraisal and setting information and get it insured and they may require something else after it is set like an update from your appraiser, not sure about that. But you do want it insured while being sent off to be set and also in case of damage while being set. Best case scenario is to have the diamond vendor set the stone and then they take responsibility and you don't have to get insurance until the ring is finished.

You might want to name your appraiser who came up with a reasonable value because good ones deserve recognition!
 
This isn't the first time that WF's "letter of valuation" has proven confusing and highly inflated. If they are going to include one you would think they could make it accurate.
 
As long as you can replace your ring for what you paid for it or for the lower appraised value, insure it for one of those. It will save you insurance premiums in the long run. JM isn't going to pay any more to replace the ring than absolutely necessary.

liz
 
respectfully all,

as always thanks for your valued input.
 
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