Secondhand market and trusted third party escrow

[proto]

Hi PSers

I had a thought while browing the preloved PS section for kicks.

Do any appraisers or vendors offer a service where they act as a trusted intermediary for secondhand goods? They receive items/funds and only release when both parties have sent their stones/money and they also get an opportunity to review the items to ensure they are legit and as described etc. They could take a fee/percentage for this service and the buyer/seller could negotiate between themselves who pays what proportion of this fee.

Would this kind of thing be allowed under the PS terms of service and would any vendors interested (profit margins depending)?

As a cross-selling opportunity, the third party could also offer polishing etc on the items since they would already have the items in possession.

Just an idle thought I had

 

[denverappraiser]

I can't speak for other appraisers but this sort of service is a fairly common request for me. Escrow is sometimes a regulated business and in some places requires a license so it may be a problem for appraisers in your area. The 'trusted' part of the question is the key. If there's someone you want to use, ask.

 

[Texas Leaguer]

That's seems to me a very intriguing idea. I would think a comprehensive package of services and assurance would be a real service to the market that would really facilitate consumer to consumer trading. In so doing, I think sellers could get better prices and better liquidity. Buyers would have more confidence. This would improve the overall market by making consumers more willing to buy diamonds knowing there was a secure and more predictable path to liquidation. This service combined with this forum full of active and knowledgeable consumers could become quite robust.

As Neil states, top appraisers are likely getting these requests on a regular basis. But establishing a more concrete system might be really helpful to alot of people. Just thinking out loud.

 

[Andelain]

I just bought an emerald ring from here using David Atlas as a go-between. I asked the seller to ship to him, paid him for the appraisal, and then paid the seller when he appraised it as being worth the price. Now he's shipping to me. I think of it as a $200 insurance policy, well worth it for a $3200 ring that had no papers.

 

[mamasooz]

Ten years ago I bought an antique asscher cut ring on Ebay. The seller flew to Maine to Nelson Rarities and met with one of their jewelers. I sent the money by wire after the ring was inspected and the ring was left with the jeweler. Of course I did not expect someone to do that for free!!! I was very lucky!

 

[Gypsy]

I just bought an emerald ring from here using David Atlas as a go-between. I asked the seller to ship to him, paid him for the appraisal, and then paid the seller when he appraised it as being worth the price. Now he's shipping to me. I think of it as a $200 insurance policy, well worth it for a $3200 ring that had no papers.

This is exactly what I'd do using either Neil or David, or possibly Patrick Davis, if it was an item local to him.

I've actually asked BGD to do something similar for me before. I had a stone I bought and it had a large chip in the crown facet and I wanted to make sure it was one that could be recut and that the color and clarity were accurate on the listing, so I had it sent directly there. Brian OK'd it for me, and I paid the seller. Then it was recut and sent to me, and I had it appraised, officially, locally.

 

[Texas Leaguer]

In terms of verification and professional advice, and providing buyers with assurance and sellers with documentation to facilitate liquidations, appraisers perform these services regularly.

But to an extent, it takes some specialized awareness and some vetting and logistics to put consumer to consumer transactions together in safe, convenient and secure ways. That is probably more than the vast majority of consumers are prepared to organize on their own.

But if there was some sort of brokerage exchange that was operated in a transparent manner where the market could easily learn the system and have confidence in it, it just seems like it could go mainstream and we would not be talking about anectdotal stories.

The subject reminds me of a point Martin Rapaport has made very forcefully- (paraphrasing liberally here) - the biggest diamond source in the world is not South Africa, it's South Florida. Recycled diamonds. In particular retirees liquidating and doing other things with the money. Martin strongly encouraged jewelers to get involved in buying diamonds from the public, and in particular to do it in a very ethical way so that they could make a reasonable profit AND give the seller fair market price. If more people were treated fairly on liquidation, the industry and the product would have a better reputation. This would be a tide that would lift all boats.

Unfortunately, too many buyers are out to take advantage of these situations and too many people come away from the trade feeling less than satisfied.

This is why I think there is a huge need for a real system for the second hand jewelry market run by knowledgeable, ethical professionals. Something more accessible, well defined, easy to understand and accountable. Perhaps even regulated. Okay, now I may have crossed a line