Find your diamond
Find your jewelry
shape
carat
color
clarity

Possible conflict of interest?

DauphineMucha

Shiny_Rock
Joined
Oct 13, 2010
Messages
234
Is it unethical to ask an independent appraiser to source jewelry or to serve as a liaison between seller and buyer? I don’t know the rules of conduct. Just curious…
 
  • Like
Reactions: AV_

distracts

Ideal_Rock
Premium
Joined
Oct 11, 2011
Messages
5,493
If an appraiser is sourcing jewelry, they are not an independent appraiser. There are plennnnnty of people who both appraise and sell jewelry - you can find them at just about any jewelry store. The point of an independent appraiser is that they do not sell jewelry so have no sales conflict of interest when appraising.
 

Wink

Ideal_Rock
Trade
Joined
May 3, 2001
Messages
7,404
I would agree with this on the quick glance, but then I think about another possibility. I only appraise things that I sell.

Why? Because I know exactly what it will cost to replace the item at the time that I sell it. I learned a long time ago that when we turn our custom workshop loose to create a masterpiece, using hot isostatic pressing and top quality melee, it will cost more than most appraisers will appraise it for. Not a top shelf appraiser, some of whom can be found here, but the average appraiser who does not know how to tell the best from the rest.

When doing such an appraisal, my involvement in the sale is disclosed in the limiting conditions so that any person using that document for valuation of the item for an insurance policy is aware of my involvement in the sale of the property. I even call the document an "evaluation for insurance purposes."

Why then do I not offer appraisals on items I did not sell? Because I do not want to take the time to properly figure out what it should cost to replicate the item. For that you really do need an independent appraiser who is willing to take the time and has the knowledge to properly determine a fair market value for the item being appraised. That appraiser deserves fair compensation for his/her time and knowledge, and you should expect to pay for that service

My point is, a jeweler selling an item and providing an evaluation for insurance purposes is not necessarily in a position of an automatic conflict of interest. However, an appraiser, being paid to appraise and then offering to source items to appraisal clients is creating a conflict of interest.

Wink
 

DauphineMucha

Shiny_Rock
Joined
Oct 13, 2010
Messages
234
...However, an appraiser, being paid to appraise and then offering to source items to appraisal clients is creating a conflict of interest.

Wink
Good point. I could think of another scenario...

Let's say I bring my own pieces of jewelry to appraiser X for insurance reports, While chatting, I casually mentioned to X that I am on the hunt for a loose stone/jewelry piece, etc. and jokingly ask X if X knows anyone who is selling what I am looking for. X said yes and connected me to the seller. That is considered conflict of interest, correct?
 
  • Like
Reactions: AV_

oldminer

Ideal_Rock
Trade
Joined
Sep 3, 2000
Messages
6,360
There are many ways to do unethical things. Independent appraisers should be extremely aware of how things might look and err on the side of maintaining a top reputation. It is not unethical for a client to ask an appraiser to find and item of jewelry, but it may well be unethical for the appraiser to agree to do it. It depends on who asks and who does exactly what.

An appraiser can act as a go between to help protect a client from making a mistake with a seller. It just needs to be an open and arm's length situation. Clients should not put their expert into a potentially bias producing event where everyone loses faith in the objective nature of the middleman expert. Such work is difficult and full of potential pitfalls.

Truly independent appraisers tend to stick to appraising and avoid pressures to do other tasks which may create problems for them or their clients.
 

AV_

Ideal_Rock
Joined
Aug 5, 2018
Messages
3,350
He is not an independent third party to the transaction that he recommended & no more.
 

Wink

Ideal_Rock
Trade
Joined
May 3, 2001
Messages
7,404
Good point. I could think of another scenario...

Let's say I bring my own pieces of jewelry to appraiser X for insurance reports, While chatting, I casually mentioned to X that I am on the hunt for a loose stone/jewelry piece, etc. and jokingly ask X if X knows anyone who is selling what I am looking for. X said yes and connected me to the seller. That is considered conflict of interest, correct?
If he is going to receive a commission on the recommendation and does not tell you, yes. If he discloses that he is going to receive a commission, then it may not technically be a conflict,

If he is not going to receive a commission and points that out to you so that you are aware he is not going to receive a commission, then, provided he is telling the truth, he is not creating or participating in a conflict in my opinion.

We have some excellent appraisers here, one of them may wish to weigh in on this.

Wink
 

tyty333

Super_Ideal_Rock
Premium
Joined
Dec 17, 2008
Messages
21,428
Is it unethical to ask an independent appraiser to source jewelry or to serve as a liaison between seller and buyer? I don’t know the rules of conduct. Just curious…
People turn to appraisers to facilitate the selling/buying process between two people (who are not usually jewelers).
They make sure that the seller gets the cash payment for the item and that the buyer gets the item. The appraiser is paid for
this service.

This is not unethical. The appraiser serves as a trusted middle man to the exchange (Note....it's not the appraiser selling the item).

Not sure if this is the type of situation you are referring to though.

Edit...I just saw your last post (#4). To me, this is not a conflict of interest and I see nothing wrong with it (unless there is more to the story).
 

DauphineMucha

Shiny_Rock
Joined
Oct 13, 2010
Messages
234
Making me think of ordering from a PS vendor, sending the good to X, I view, I like, then I pay. I think there is a charge for X’s service in that case, don’t you think?
However, I found and ordered it myself before sending it to X. That sound different...

My #4 post suggested that X to find me a seller of the good...different, won’t it?

Hope I am not confusing you all. Thanks
 
Be a part of the community It's free, join today!

Need Something Special?

Get a quote from multiple trusted and vetted jewelers.

Holloway Cut Advisor



Diamond Eye Candy

Click to view full-size image.
Top