Question about Christie's: why is this E-ring so cheap???

[bbkk]

Hello All,

I recently saw a friend's engagement ring from Christie's and it looked really good (a 5+ carat light pink diamond ring costs about $155k). So I started to browse their website, and surprisingly I found quite a few reasonably-priced rings from the past sales (I used to think Christie's only sells items that cost millions)! However, it kinda puzzles me as well, for some of the rings are cheaper than I think would cost at a jeweler. I have to admit that, even after lurking on this forum for quite a while I still don't know much about diamonds. Experts here, can you please enlighten me on that?

For example, this one:

http://www.christies.com/lotfinder/jewelry/a-diamond-ring-5725351-details.aspx?from=searchresults&intObjectID=5725351&sid=589ff9ef-9af7-4794-86c9-aaea1f4f6a12

2.07 carats, E color, VVS2 clarity for only $25,000 ???


Has anybody here auctioned diamonds from Christie or Sotheby's before? Could you please share you experiences?

Thanks a lot!!!

 

[pyramid]

Re: Question about Christie's: why is this E-ring so cheap??

Because 99% of people would not want a 'second-hand engagement ring' which could be from a bad relationship.
Even though diamonds online or from jewellers elsewhere are probably second-hand but re-cut.

 

[bbkk]

Re: Question about Christie's: why is this E-ring so cheap??

Because 99% of people would not want a 'second-hand engagement ring' which could be from a bad relationship.
Even though diamonds online or from jewellers elsewhere are probably second-hand but re-cut.

Is that the reason? If so, I don't mind at all! So you think I can actually get a great deal auctioning on Christie's because it is pre-owned?

 

[dk168]

Re: Question about Christie's: why is this E-ring so cheap??

If you live near one of their offices/sales room, you could preview the jewellery prior to a sale in person, as viewings are normally open to the general public. They will even let you try them on (not sure about the rules on earrings though).

I went to look at the items on sale for their recent Magnificent Jewels sale in HK last week while I was out there.

I believe if one is not put off by buying a "pre-owned" engagement ring, then auction sites can be good hunting ground for bargains.

One of my colleague's fiancé bought her 3-stone sapphire and diamond ring at an auction at a fraction of the price that it would have cost had the ring been new.

DK

 

[ChristineRose]

Re: Question about Christie's: why is this E-ring so cheap??

Short answer: It's actually pretty pricey.

Longer answer:

There aren't a ton of comparable diamonds on the diamond finder--many appear to be the same diamond listed by different companies. But they range in price from $21,000 to $36,000. The small diamonds in the halo are worthless and would be destroyed in breaking the ring apart. The metal in the setting is worth a few hundred dollars for scrap.

So unless you happen to love that setting and it happens to fit you, the retail value of the ring is probably around $22,000 to $37,000. Used stones sell for 10% to 70% of their retail value. So the seller actually did quite well. Christie's took their cut of course.

People often think of diamonds as being like gold, where you can buy in the morning and resell in the afternoon for the same price less a small fee. But in reality the diamond supply is controlled by a monopoly and there is no diamond resale market. By "market" I mean a group of people who buy all the diamonds they can get and compete on buying prices, and who like to keep a full range of diamonds around to present to buyers. A jeweler might resell your diamond, but only if it happens to match what he needs for his stock, so jewelers don't have the incentive to buy every diamond offered to them. Most stones sold at a pawn shop or gold buyer will eventually end up in the same supply chain as all other diamonds, so the pawn shop owner will take what he can get and offer us less than he can resell for.

It depends on cut and specs, but estimates for the percentage of "used" diamonds at the local jeweler run around 40%. In general the jeweler has no way of knowing what they have, and sees no reason to dissuade the public of idea that jewelers don't have used stones with bad karma on them.

Although this stone does give good bang for the buck, it doesn't help you much if your a Pricescope cut fanatic (can't say for sure but I doubt if it's a superb precision cut), or if you don't have 25K, or if you just don't like old mine cuts. But if you want to put in the time, you can get much better deals in the used market.

 

[denverappraiser]

Re: Question about Christie's: why is this E-ring so cheap??

2.07 carats, E color, VVS2 clarity for only $25,000 ???

Old Miners are a bit difficult to shop directly with things like the PS database because the supply is limited but in Cushions, 2.0-3.0/D-F/VVS there are dozens of stones available in the database in that general price range. Bear in mind that Christies charges a 25% 'buyers premium' above and beyond the hammer price so whoever bought that ring actually paid $32k for it.

Are they cheaper than other retailers? Sometimes, and on some items, but not in general. They do tend to choose a product mix that's a little different from your average jewelry store and there's a certain entertainment value to the show but make no mistake, this is retail sales. It's not that there's anything particularly wrong with that but don't expect it to be a bargain. Christies, and all of the other auction houses, are commission sales people working for the seller. Don't read into that more than is there.