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Selling my diamond - can I break even?

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redroze

Shiny_Rock
Joined
Jul 15, 2013
Messages
405
So I'm going to use arbitrary numbers here. But I've spoken to various vendors and am meeting with a bricks and mortar next week (more on that later). Back in 2004 my husband bought my diamond for $1000 from a dealer. The dealer seemed inexperienced and frankly isn't in business anymore as we tried to contact him for a trade up (phone no longer working). As far as we can tell, we paid less than he would have elsewhere..,,the diamond would have costed 1500 from a wholesaler or 1800 from B and M and we bought for 1k. Our dealer was obviously new and trying to drum up business by making little profit...and it didn't work.

Cut to now, 10 years later. The same diamond costs 2k from a wholesaler like GOG or JA. Surprisingly the offers I'm getting are less than 1k - 200 or 500. Only one dealer is offering close to it - 700 . Why can't I expect a reasonable offer to break even or even make a profit? Is it that the demand for 70 point diamonds are lower now (hard to believe everyone can afford 1 carat...most girls at my work are wearing 50-70 points). Is everyone low balling me? I was also surprised to find the B and M I got my setting from, who is high end, is willing to buy my diamond and put towards a bigger one. Can I expect a lowball offer from them too?

I don't get it... Perhaps someone could give insight. I know my diamond is considered used but there must be a way to at least break even!
 
What lab did the grading report and what is the color and clarity grade, cut grade if it has one?
exact weight?
Lets start by setting a proper baseline.
 
Karl it was GIA. My husband misplaced the report but it's laser inscribed with a GIA number. The report doesn't have a cut grade which a bendor told me today is common for diamonds sold before 2005 (is that accurate)?. I got it appraised recently by an independent appraiser, and we also got it appraised at a store in 2004 ( no relation to the vendor) and they one stated its a very good and other said excellent cut back in 2004.

Is it because I don't have a 1 carat? This article seems to suggest that my "small" diamond won't help me break even. http://bigskygold.com/wp/?p=1354

Seems accurate according to Lumera site:
Unlike the other "Cs" (carat weight, color, and clarity), the various Cut grades in existence today were not originated by GIA, and are not uniformly applied. In fact, GIA has only been assigning cut grades since 2005, and only to round diamonds.

GIA report check shows F colour, VS1, 0.70. No flour, no culet, good sym and good polish. No crown or pavillion info in Report check.

Depth 61.6 %
Table 58 %
Girdle Very Thin to Slightly Thick
Culet. None
 
Been reading some posts and I think I've concluded my diamond is a good cut at best. I have a dud don't I? Shocking as all this time I thought my duamond's cut was better than most. Good sym and good polish prob doesn't equal vg or exc cut.
 
yea good sym and good polish and the very thin girdle push the value down.
The table and depth look pretty good.
There is a pretty good chance it would fall into the current gia vg category.
The thing is a dealer buying it would be taking a chance that it makes it if they bought it as a vg cut.
So plug that into the PS search tool we get.....
 
before we go there it is a round brilliant? If not forget what I said above....
 
Can you try to sell it on loupe troupe rather than a dealer?
 
Could you post the GIA number?
 
Yes it's a round brilliant.
 
Yes it's a round brilliant. GIA number is 12597217.

I tried the search tool and there are zero diamonds that fits my specs!! This sucks...dreams of an upgrade are slowly fading. Guess we should have consulted PS long ago.

Selling on loupe troop...do you think that would be the best route? I think I'll try to sell through this local vendor who offered me the highest, contingent on me buying a diamond from her which is reasonable.
 
Just a thought (and maybe a bad one), but I wonder if a recut would be worth it

http://www.brianthecutter.com/diamond-recut-service/

They provide images before/after and that could help you sell. If you decide to not sell, you'll be stuck with a very beautiful diamond :appl:
 
Do you have paperwork proving or at least indicating that you are the legal owner of this diamond?

If so, feel free to find me.
 
Paul - what do you mean by paperwork? I have an appraisal on the loose stone from 2004, an appraisal on my engagement ring + diamond from 2005 (previous setting) and my new setting + diamond in 2014. And the GIA report check and the diamond itself is laser inscribed with GIA number. I also have a receipt from my e-ring with the diamond set in it from 2004. My rings and diamond are insured since purchase.

My husband thinks he has a receipt and possibly the original GIA report but we'd have to find it as he was hiding it from me.
 
teobdl|1391605940|3608298 said:
Just a thought (and maybe a bad one), but I wonder if a recut would be worth it
Click to expand...

Hmm definitely a good option. I'll look into it. I'm disappointed as all the other Cs are great...just the cut is not what I thought it was. Perhaps that's why I've been somewhat disappointed with it. Funny thing is I swear it looks better than most diamonds I see day to day!!
 
I am in the same boat - been counting down to my diamond upgrade for 10 years only to find out that the store is no longer is business and even though the diamond looks great on paper it apparently its the greatest cut (I have never been displeased with it). So now what to do..... a few places said that they would take it as a trade as an upgrade to a diamond but I'm afraid they are just inflating the diamond price that they wish to sell me... trying to sell it outright gets me about 1/3 of what my hubby paid for it.

Frustrating - but here's to 10 years!
 
I'm sorry to hear that and I feel your pain. The thing is we bought from a wholesaler as all the research said to steer clear of B and Ms...now I'm thinking at least a b and m would have a trade up policy they could honour now. We thought the cut evaluation protected us...now I'm reading that appraisals don't count for much if they're not detailed.

I actually think I misread the local vendor's note. She will sell my diamond if she can find a buyer. So it's not contingent on buying a diamond from them.
 
Thanks to everyone for their replies. I'm piecing the puzzle together and think that the amount we paid WAS actually more than it was "worth", so in other words, not much much lower than wholesale price. So that resolves everything...and I should aim to recoup some of the expense (50% perhaps) but certainly not the amount we paid for it.

Thanks, moving forward!!
 
There are a bunch of comps on the PS search if you use the search all button:
https://www.pricescope.com/diamond-search-results/?size__gte=0.7&size__lte=0.7&search=&shape=BR&color__gte=F&color__lte=F&clarity__gte=13&clarity__lte=15&price__gte=0&price__lte=1000000&hca_index__gte=0&hca_index__lte=10&type_color=1&type_search=1&country=US&country_long=United+States&region=IL&city=Rockford&vendor__country__contains=&vendor__region__contains=&l_country=us&l_region=IL&latitude=42.2710990906&longitude=-89.09400177&color_m=G-&color_p=H%2B&vendor__latitude__gte=-180&vendor__latitude__lte=180&vendor__longitude__gte=-180&vendor__longitude__lte=180&vlt_g_ct=-180&vlt_l_ct=180&vln_g_ct=-180&vln_l_ct=180&search_key=sk_session_5626&f=3

based on that if there is no damage I don't see why you cant do better than break even finding the right buyer.
With $200 and $500 offers it makes me wonder, they are either total slime or is there a problem with the diamond?

edit: contact Paul.
 
I know with good old gold, their consignment policy depends on whether or not you are re-buying from them. if you are not, its a higher fee, up to 15% of the sale. Hopefully the dealer can find a buyer and you can keep most of the profit. Good luck redroze, it will work out hopefully in your favor! A private sale will certainly bring the best bang for your buck!
 
Hey Karl, my search parameters were probably too specific. Based on these prices I can tell you we paid significantly more...which was 10 years ago. So my hunch was right...the vendors aren't lowballing me at all. They are giving fair prices based on the value.
 
You're absolutely right artdeco. By the way, I'm considering an EC again. I thought it would be easier with a round as less modification to the head of my ring, but turns out either way the head would be modified. So we may be EC twins after all! LOL
 
For me it’s always a red flag when a dealer calls themselves a ‘wholesaler’. For starters, it fails the basic smell test. The DEFINITION of retail is selling things one at a time to the end consumer. That means if they'll sell to you, they’re retailers. They, of course, know this so, what gives? The problem is that consumers think ‘wholesale’ means cheap price and dealers think it’s an excuse for low service. Neither is necessarily the case. They can charge whatever they want, just like any other dealer and they can offer or avoid whatever value-add they wish in order to sweeten the deal. I don't have a problem with either of those but this is a serious disconnect that leads to some seriously deceptive practices. They started out with a lie. That's strike 1 in an industry were trust is a primary topic, and it happened before you even walked in the door.

That said, it matters very little in the resale market where you got it, when you bought it, who you bought it from, or what you paid. It is what it is and your customer is going to pay based on that. Consumers generally pay more but they’re harder to find and they’re harder to make a deal with. Dealers pay quickly (usually) but don’t pay retail prices. Consignment deals tend to fall in the middle where someone else does the work of selling in exchange for a commission but you don’t get paid until the deal is done. You’re effectively partners with the jeweler for as long as it takes to make it happen. Where you want to land on this is up to you and one of the variables is how much time and effort you want to put into it. $1000 is pretty low for what you’re describing unless there’s something seriously wrong with the stone, like damage. That gets down to the ‘it is what it is’ issue. You’re assuming that it’s as described on the GIA, that it’s undamaged, and that it’s at least a VG cut. Your buyers may not be making these assumptions and they may very well know something you don’t. They should be willing to tell you but bear in mind that they are on the other side of the counter and it’s a bit like receiving legal advice from opposing council. Advice from professional appraiser who is NOT trying to buy it from you would be very helpful here.
 
artdecolover71|1391616459|3608356 said:
I know with good old gold, their consignment policy depends on whether or not you are re-buying from them. if you are not, its a higher fee, up to 15% of the sale. Hopefully the dealer can find a buyer and you can keep most of the profit. Good luck redroze, it will work out hopefully in your favor! A private sale will certainly bring the best bang for your buck!
Click to expand...

I can not know the details of your diamond, as you do not have them either, so I will make a guess to try to explain some of the reasons that you are getting low offers.

One, the stone does not seem to be well cut. The table is a little large and the total depth is a little deep. With a very thin to slightly thick girdle it is prone to chipping at the very thin parts. The stone weights 0.70cts, so even if it goes down only .01ct during a re cut, it will go into a lower price category. The break is between 0.69 and 0.70. For your color and clarity, the price break is almost 19% difference at Rap for a .070ct versus a 0.69ct.

If you are trying to sell to vendors who can use that type of diamond, the first thing they will need to do is get a new Diamond Grading Report as yours is much too old. There goes $100 plus shipping of the money that could be going to you. Then some of those you might sell to will need to do a full recut to get the diamond to their standards AND get a new Diamond Grading report. There goes even more of the money that could be going to you. Of course, they are also going to want to make a profit, and if they are putting out their own money, they are going to want to make more than 10% which they might be happy to make when they bring in a diamond and sell it without having to lay out their own money. Especially a regular retail jewelry store, which is one of the most expensive retail stores to run on a per square foot basis.

And, sadly, some people just have a business model that says steal low, sell high and they are going to make you really bad offers, all while parroting the points above.

When and if you ever buy again, make sure you are dealing with a reputable dealer who has at least a good buy back program and a good trade up program. Then you will not be in such a straight as you are now.

I wish you well and hope you find someone to give you the offer that you seek.

Wink
 
redroze|1391617657|3608371 said:
Hey Karl, my search parameters were probably too specific. Based on these prices I can tell you we paid significantly more...which was 10 years ago. So my hunch was right...the vendors aren't lowballing me at all. They are giving fair prices based on the value.
Click to expand...
ok.....
You know it helps if you give us accurate info to work with from the start.
 
Good points all. To clarify we did not pay 1k...I used arbitrary numbers intentionally as I know anyone can be reading this. I appreciate the advice and hope the private sale goes through as it can help me recoup 50-60% of what we paid originally.

Story goes like this. Seemingly educate couple pays retailer parading as wholesaler more than twice as much as retail. Couple assumes they got a deal by not buying from a B and M and getting 'excellent cut' rating on independent appraisal. GIA didn't provide cut details at the time so bad luck for us.

10 years later though the value of diamond with same stats went up, retail price is still less than what couple paid. Couple tries to sell and can only get back half of what they paid for it. Retailer/wholesaler is Mia. The end.

Sorry for the sarcastic tone but I feel sad but grateful for the advice here. I'm an innate researcher so feel genuinely shocked that we were so misled. But I'm grateful for our health and security Nd best to move forward,.

Thank you so much for all your help!
 
Wink|1391621357|3608435 said:
artdecolover71|1391616459|3608356 said:
I know with good old gold, their consignment policy depends on whether or not you are re-buying from them. if you are not, its a higher fee, up to 15% of the sale. Hopefully the dealer can find a buyer and you can keep most of the profit. Good luck redroze, it will work out hopefully in your favor! A private sale will certainly bring the best bang for your buck!
Click to expand...

I can not know the details of your diamond, as you do not have them either, so I will make a guess to try to explain some of the reasons that you are getting low offers.

One, the stone does not seem to be well cut. The table is a little large and the total depth is a little deep. With a very thin to slightly thick girdle it is prone to chipping at the very thin parts. The stone weights 0.70cts, so even if it goes down only .01ct during a re cut, it will go into a lower price category. The break is between 0.69 and 0.70. For your color and clarity, the price break is almost 19% difference at Rap for a .070ct versus a 0.69ct.

If you are trying to sell to vendors who can use that type of diamond, the first thing they will need to do is get a new Diamond Grading Report as yours is much too old. There goes $100 plus shipping of the money that could be going to you. Then some of those you might sell to will need to do a full recut to get the diamond to their standards AND get a new Diamond Grading report. There goes even more of the money that could be going to you. Of course, they are also going to want to make a profit, and if they are putting out their own money, they are going to want to make more than 10% which they might be happy to make when they bring in a diamond and sell it without having to lay out their own money. Especially a regular retail jewelry store, which is one of the most expensive retail stores to run on a per square foot basis.

And, sadly, some people just have a business model that says steal low, sell high and they are going to make you really bad offers, all while parroting the points above.

When and if you ever buy again, make sure you are dealing with a reputable dealer who has at least a good buy back program and a good trade up program. Then you will not be in such a straight as you are now.

I wish you well and hope you find someone to give you the offer that you seek.

Wink
Click to expand...
Wink,

I don't actually agree with you here. a 0.70/GG is a tough sell to be sure, and it'll carry a discount, but a new report that calls it 0.70/VG G G isn't much progress. If it's 0.70/GGG it's actually worse. This may or may not be a good prospect for a recut but if it's cut it'll need to be resubmitted yet again after the work since documenting the improved cut is sort of the point. That is to say, ship-lab-ship-cutter-ship-lab-ship-sell-ship. That's an expensive process to end up with a 0.6x/xxx. Selling it as it is for a 'discount' may very well produce a fair amount more money and would almost certainly be faster.
 
redroze-I totally understand!! and hey, like you said, you cannot change what the heart wants. If you want an EC as an engagement ring, that desire will never change probably (I have had the desire for 20 years lol).
 
denverappraiser|1391623534|3608464 said:
Wink,

I don't actually agree with you here. a 0.70/GG is a tough sell to be sure, and it'll carry a discount, but a new report that calls it 0.70/VG G G isn't much progress. If it's 0.70/GGG it's actually worse. This may or may not be a good prospect for a recut but if it's cut it'll need to be resubmitted yet again after the work since documenting the improved cut is sort of the point. That is to say, ship-lab-ship-cutter-ship-lab-ship-sell-ship. That's an expensive process to end up with a 0.6x/xxx. Selling it as it is for a 'discount' may very well produce a fair amount more money and would almost certainly be faster.
Click to expand...

I did not mean to imply that the OP should do any of that, I was trying to explain why some of the offers would be so low. If I were to buy such a stone the offer would be low enough to allow me to recut it, then repaper it after it looked like it should look, oh, and of course to pay shipping to and from the cutter and then also make a profit. I would expect the OP to sell it as is because even if she did recut and repaper, no one is going to want to pay her a fair price since she is not in the business.

I apologize for not being more clear.

Wink
 
No way would I recommend re-cutting. Not at this size and cost compared to what it is worth.
 
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