Pricing & resale of fluorescent stones

[undecimo]

All - I'm trying to decide between two very similar AGS000/H&A stones for an engagement ring, one with strong blue fluorescence and one with none. The strong blue is discounted about 6%, which is within Rapaport's guidelines for its color and clarity.

My concern with the strong blue is that it won't be worth as much, or won't find as many buyers, as the non-fluorescent stone in a resale situation. (Not that I anticipate ever selling it, but... just playing it safe on a $20K+ investment.) I know about the GIA study, that most fluorescent stones don't have a milky appearance, that fluorescent vs non is largely a matter of taste, but I'm sensing that the reality in the market is that people in the trade shy away from fluorescent stones because it's "just another variable to consider" that creates fear, uncertainty and doubt in consumers' minds.

I know fluorescent stones SHOULDN'T necessarily be discounted or considered less desirable, but what has everyone here found to be the REALITY in terms of pricing and reselling them? I'd be very interested in hearing any opinions or experiences.

 

[ame]

Diamonds are not really a good investment and resale VERY poorly. And most people buying them resale are less concerned about florescence unless it were to actually impact the stone's appearance. So you really need to convince yourself it's not really an investment and buy what you like and can afford, because considering any sort of value growth for resale is going to leave you quite disappointed. The only such things that resale well are stones and jewels of important provenance, hope diamond, wynn diamond, something intact from Tiffany or something of that nature, and even then, value and worth are super subjective.

Worth is a totally different animal. Worth is subjective, and what you think is worth more is probably not worth as much to anyone else. You can get an appraisal for replacement and insurance purposes but trying to convince someone else that's what they should believe it's actually worth is futile.

As far as pricing on the retail market, they will cost a little less as the industry doesn't value them as highly as a "pure" color stone (a true D, E, F whatever and has no florescence).

 

[LGK]

I'd take the 6% discount in a heartbeat if you don't mind the look of fluoro. Frankly, you'd be taking such a bath if you ever have to resell, that I don't think it would be worth cosidering resale scenarios when deciding what diamond to buy. (If you got as much as half what you paid back, you'd be doing really, really well! More typical is 1/3 or less.)

IRL, what GIA terms "strong blue" fluoro can vary, as well. Some are very fluorescent, others not so much. See if you can look at it in direct sunlight, and even better compare it to another diamond. Diamonds reflect blue sky on sunny days so all of them show some blue anyway.

ETA: That's why places like Good Old Gold that have buy-back policies can be a good incentive (I think they will pay you 75% of whatever you paid originally on some of their premium stones, IIRC). If you ever get stuck where you *have* to sell, 75% can be a killer deal compared to what you'd get other places.

 

[denverappraiser]

As mentioned above, reselling diamonds is a substantial pain in the best of circumstances and fluoro makes it worse. The problem with answering your question in a straight way is that this is a fashion issue. Fluorescence is currently out of favor but it hasn't always been so and your guess is as good as mine how it will play out in the future. If I could predict fashion I would be a VERY wealthy fellow. My solultion is simple. Buy what you love. That's fashion too but at least that one you can pin down.

 

[Lisa Loves Shiny]

If you resell your diamond chances are somebody is going to buy it because it is the size, cut, clarity, and price range they are willing to spend. I highly doubt they are going to worry about flouresence in the secondary market.

 

[swingirl]

If you are worried about potential buyers, purchase a stone from a vendor with an upgrade policy or a buy-back policy.

 

[kindred]

I would look for a diamond with a good buy back policy. A vendor offering one of those will pay you far more than you'd get if you had to resell it.