Second Hand Evaluation - How useful??

[hawaiianorangetree]

Hi Everyone!

I have become quite addicted to finding the perfect diamond ring for my engagement and in turn have become quite addicted to pricescope!

I have found so much useful information on here and i was wondering if you could all help me out with a question i have about buying a second hand diamond.

How useful are the evaluations that come with them?

I am looking at a ring here in Australia that is 6 months old and the evaluation states it is a 1.01 carat (approx) 4.2grams (dimensions 6.42 x 6.46 x 3.90) in an 18k white gold ring, colour G, clarity VS1, estimated due to the setting. The valuation has valued it at $23,300 and they are asking $6700 for the ring.

How approximate would the wieght be and how estimated would the colour be since the diamond is in a setting?

Was just wondering if it would be risky to buy, and what you guys all thought about it... i love reading all of your opinions.

Thanks!

 

[JulieN]

there are some $6700 1.01 G VS1 that I wouldn''t touch with a 10'' pole, and some that the price would be an absolute steal.

You don''t have enough information.

 

[stone-cold11]

not very. vendor''s evaluation usually has a feel good factor that makes it seems like you are getting a good deal.

 

[denverappraiser]

The first line to read on an appraisal is the identity of the appraiser. If you don’t know who it is and are unable to find them through a bit of research, read no further, the report is irrelevant for your purpose. If you do find them, you need to take one further step: you need to decide if you value their opinion. Contrary to wikipedia, all opinions are not of equal merit.

Did a 1.01/G/VS1 really cost $23,000 6 months ago? Where? If not, why did they say that? If the only verifiable piece of data on the report is demonstrated to be false or at least inapplicable, I would seriously question putting confidence in the rest of it.


Also bear in mind that an approximately 1.01/G/VS1 could be importantly different from a 1.01/G/VS1, and that''s ignoring the substantial differences in value within that grading based on information not provided. You are way out on a limb here. Use your OWN expert instead of relying on theirs, especially when you already know that at least part of what they''re giving you is misleading.

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

 

[hawaiianorangetree]

Thanks guys... I figured as much but i was hoping for it to be too good to be true.

The evaluation was done through the Australian Jewellery Valuation Laboratory in Perth in association with the Jewellers Association of Australia.

The lady who is selling it just wants a different engagement ring and she said that if we were not happy with the valuation certificate that we could take it somewhere else... but i''m guessing that if they are only just opinions, anothers opinion isn''t going to make much difference.... unless anyone can make an recommendations???

 

[RBD hunter]

If the diamond in question looks good to you?
See if the seller would be willing to send it out to GIA
Or other quality grading service for a good certification (ie Paper trail)
Or an independent appraiser (Neil for example)

 

[:)]

Have you looked at Precious Metals (Holloway Diamonds) or Jogia?

 

[hawaiianorangetree]

Date: 1/20/2009 11:48:02 PM
Author:
Have you looked at Precious Metals (Holloway Diamonds) or Jogia?

Yes, i have looked at both... i absolutely looove holloway diamonds, i have all of their catalouges at home and i drool over them daily but unfortunately they are a little out of my price range for what i am looking for.
Jogia are great... i agree, but they don''t have a huge selection in the price range i am looking for. (1 carat round brilliant) we were hoping to spend no more than $10,00AU on the complete ring.. I am fairly flexible on the colour and clarity but having ex,ex,ex on the cut is a must! It has become a faviourite past time of mine to put every round brilliant diamond i find throught the HCA.

I did look at a diamond at jogia just last week, it was an ideal cut 1.04 carat g colour si1 clarity but it looked yellow on sight, but... i have since learned that the colours you wear effect the colour of the diamond and what was i wearing last saturday??? A yellow top! lol.

 

[Modified Brilliant]

Date: 1/20/2009 9:25:38 PM
Author: denverappraiser
The first line to read on an appraisal is the identity of the appraiser. If you don’t know who it is and are unable to find them through a bit of research, read no further, the report is irrelevant for your purpose. If you do find them, you need to take one further step: you need to decide if you value their opinion. Contrary to wikipedia, all opinions are not of equal merit.

Did a 1.01/G/VS1 really cost $23,000 6 months ago? Where? If not, why did they say that? If the only verifiable piece of data on the report is demonstrated to be false or at least inapplicable, I would seriously question putting confidence in the rest of it.


Also bear in mind that an approximately 1.01/G/VS1 could be importantly different from a 1.01/G/VS1, and that''s ignoring the substantial differences in value within that grading based on information not provided. You are way out on a limb here. Use your OWN expert instead of relying on theirs, especially when you already know that at least part of what they''re giving you is misleading.

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

Neil brings up a great point about identity. More often than not, an appraiser''s signature is illegible and his or her name is not
printed anywhere on the appraisal. Why not? Not confident in their work? Assumes no responsibility for the report? It''s like buying
a diamond wearing a blindfold. A true professional appraiser is proud to print his or her name to their appraisal documents.

I realize this is not the case with this particular diamond....just needed to bring out these points for consumers.



www.metrojewelryappraisers.com

 

[denverappraiser]

Yes, they are just opinions but it is not correct to say that this means they are of no value and it is not correct to say that all opinions are equal merit. You are spending quite a bit of money on what is basically a blind item and are basing the decision of it, right? So choose your advisor as carefully as you would for any other big money and unregulated deal. I’ve never heard of the Australian Jewellery Valuation Laboratory and I know nothing about them beyond the fact that they don''t seem to have a web page. It’s up to you to decide if you want to follow their advice but my recommendation is that the default answer should be no. Who then should you trust?

First, consider the seller. Since this is apparently an individual, I would certainly agree that you should be nervous about this. Trust is the usual reason that people prefer to buy from dealers over individuals and price is the usual reason to buy from individuals over dealers. That’s fine, and it’s a good reason, but relying on a seller supplied appraisal is identical to relying on the seller, especially if you have no outside corroboration to go with it. You MUST do your own due diligence or you are at significant risk. If you can’t find an independent appraiser in your area, perhaps you can find a jeweler to assist for some reasonable fee but the strategy of discounting an opinion decided to disbelieve is NOT a sensible approach. Garbage in = garbage out.

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