Selling my Diamond... What is a fair price?
- Thread starter BryanK
- Start date
- Status
neatfreak
Super_Ideal_Rock
- Joined
- Feb 17, 2007
- Messages
- 14,174
Here is a very helpful thread, with approximate percent returns for different selling scenarios:
https://www.pricescope.com/community/threads/reselling-gems-jewelry-what-can-you-expect.17952/
ETA: Just so you know this time around, there are many vendors that offer a 100% lifetime tradeup policy...this is a scenario where it would be VERY useful to have.
https://www.pricescope.com/community/threads/reselling-gems-jewelry-what-can-you-expect.17952/
ETA: Just so you know this time around, there are many vendors that offer a 100% lifetime tradeup policy...this is a scenario where it would be VERY useful to have.
Either or... The setting was inexpensive compared to the stone. I will try to sell the package, but at the end of the day I just want to recoup my funds to put towards a new ring.
I haven''t taken any pics as of yet. I plan to do so soon should I find anyone who is interested in the ring. I plan to post an add offering is for sale in the next few days unless the local jeweler can up his offer.
I haven''t taken any pics as of yet. I plan to do so soon should I find anyone who is interested in the ring. I plan to post an add offering is for sale in the next few days unless the local jeweler can up his offer.
gwendolyn
Ideal_Rock
- Joined
- Aug 4, 2007
- Messages
- 6,770
- Joined
- Oct 20, 2007
- Messages
- 6,418
It''s GIA certified.
The company offered me a "trade-in" value which was below what I expected. I''m not sure it is fair or not (I obvously know what I paid for the ring, and what I have it appraised at)... I''m hoping his offer was a low-ball effort at best, and hence why I am asking the questions here.
The company offered me a "trade-in" value which was below what I expected. I''m not sure it is fair or not (I obvously know what I paid for the ring, and what I have it appraised at)... I''m hoping his offer was a low-ball effort at best, and hence why I am asking the questions here.
purrfectpear
Ideal_Rock
- Joined
- Mar 31, 2008
- Messages
- 4,079
Skippy123
Super_Ideal_Rock
- Joined
- Nov 24, 2006
- Messages
- 24,300
Interesting...
If I may ask, what percentage of retail is wholesale...
Not that I want to throw around numbers, but would a trade-in value of 10K be reasonable for this stone? It seems low to me compared to what it would be worth retail, or the comps. I know everyone needs to make a profit, but in this scenario the jeweler would not only make his full profit on the newer ring, he would also make a profit on the resale of the old stone... Seems off to me
If I may ask, what percentage of retail is wholesale...
Not that I want to throw around numbers, but would a trade-in value of 10K be reasonable for this stone? It seems low to me compared to what it would be worth retail, or the comps. I know everyone needs to make a profit, but in this scenario the jeweler would not only make his full profit on the newer ring, he would also make a profit on the resale of the old stone... Seems off to me
neatfreak
Super_Ideal_Rock
- Joined
- Feb 17, 2007
- Messages
- 14,174
Date: 11/11/2008 6:47:03 PM
Author: BryanK
Interesting...
If I may ask, what percentage of retail is wholesale...
Not that I want to throw around numbers, but would a trade-in value of 10K be reasonable for this stone? It seems low to me compared to what it would be worth retail, or the comps. I know everyone needs to make a profit, but in this scenario the jeweler would not only make his full profit on the newer ring, he would also make a profit on the resale of the old stone... Seems off to me
Yes that isn't unreasonable IMO considering you don't have a guaranteed trade in value from your original purchase... I know that the online "retail" of diamonds is normally not too far off from the wholesale price. There isn't a ton of markup with the online vendors. I feel like I have heard 10% thrown around, but I'm not sure if that is correct.
And I would take your "appraised" value with a grain of salt...most of the time they are very inflated.
- Joined
- Aug 16, 2007
- Messages
- 5,821
- Joined
- Jul 21, 2004
- Messages
- 9,159
I’m intrigued that you listed star and lower girdle data, presumably from the GIA report but didn’t mention the cut grade? Is there a cut grade listed? Are you sure it’s GIA who did the grading?
‘Wholesale’ is a complicated question in the diamond business. Roughly speaking it’s what the dealers pay for the things they sell but, in practice, not all dealers pay the same prices and each deal is negotiated individually between the dealer and their supplier. Sometimes they pay more because they really need a particular stone and sometimes they sell for less because the seller is motivated to unload it. A good way to get a thumbnail is to use the utility at the top of the page titled ‘pricescope your diamond’ to try and find something comparable in the database. Avoid the tendency to choose the most expensive one on the list or you will be fooling yourself unless you’ve got some reason to REALLY believe that your offering is comparable to that one.
The cheapest GIA/H/SI1/205-2.09 seems to be this guy at just over $15k.
Figure ‘wholesale’ is going to be about 10-15% below that so this puts ‘wholesale’ at about $13k.
Selling to a dealer for 30% back of 'wholesale' in the current marketplace is actually doing pretty well. People haven't been buying much lately and dealers are scared to be adding inventory. Whether or not it's a good deal on a trade in depends on what you are trading for and how much they get to make on that end of the deal.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
‘Wholesale’ is a complicated question in the diamond business. Roughly speaking it’s what the dealers pay for the things they sell but, in practice, not all dealers pay the same prices and each deal is negotiated individually between the dealer and their supplier. Sometimes they pay more because they really need a particular stone and sometimes they sell for less because the seller is motivated to unload it. A good way to get a thumbnail is to use the utility at the top of the page titled ‘pricescope your diamond’ to try and find something comparable in the database. Avoid the tendency to choose the most expensive one on the list or you will be fooling yourself unless you’ve got some reason to REALLY believe that your offering is comparable to that one.
The cheapest GIA/H/SI1/205-2.09 seems to be this guy at just over $15k.
Figure ‘wholesale’ is going to be about 10-15% below that so this puts ‘wholesale’ at about $13k.
Selling to a dealer for 30% back of 'wholesale' in the current marketplace is actually doing pretty well. People haven't been buying much lately and dealers are scared to be adding inventory. Whether or not it's a good deal on a trade in depends on what you are trading for and how much they get to make on that end of the deal.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
Sorry... Cut grade is excellent... Don''t know how I missed that one.
If I have the GIA certificate, should I assume any lab other than GIA did the certification?
I purchased the diamond three years ago for just over $17K. It is appraised at $27K. It was purchased from a dealer who had recently sold my brother and a couple of his friends their engagement diamonds... The dealer is no longer living in the US, as she moved to Isreal. I would follow up with her, but it seems like more hassle than it may be worth to track her down (although maybe not seeing that I was offered 10K today).
The jeweler who offered me the trade-in (works at one of the "oldest continually run jewelers in Boston") seems to be selling comperable diamonds for near or over 20K. He assumed I paid 18-20K for the ring, yet would still offer me only 10K.... This just doesn''t seem right.
I will shop around, and also think about selling privately.
While I do expect to take a slight haircut on a trade-in, I''m not quite ready to swallow 7K+.
If I have the GIA certificate, should I assume any lab other than GIA did the certification?
I purchased the diamond three years ago for just over $17K. It is appraised at $27K. It was purchased from a dealer who had recently sold my brother and a couple of his friends their engagement diamonds... The dealer is no longer living in the US, as she moved to Isreal. I would follow up with her, but it seems like more hassle than it may be worth to track her down (although maybe not seeing that I was offered 10K today).
The jeweler who offered me the trade-in (works at one of the "oldest continually run jewelers in Boston") seems to be selling comperable diamonds for near or over 20K. He assumed I paid 18-20K for the ring, yet would still offer me only 10K.... This just doesn''t seem right.
I will shop around, and also think about selling privately.
While I do expect to take a slight haircut on a trade-in, I''m not quite ready to swallow 7K+.
neatfreak
Super_Ideal_Rock
- Joined
- Feb 17, 2007
- Messages
- 14,174
- Joined
- Jul 21, 2004
- Messages
- 9,159
I asked about the GIA report because so many people confuse reports written by GIA graduates, ‘Certificates’ issued by other companies and other things and the difference is important. The clues we get on the forum about this are in the little details like the choice of words people use or don’t use.
It is, of course, the way of selling things that sellers always want more than buyers want to pay and this leads to something of a conflict since your interests are mostly opposed (they’re aligned in that both sides are interested in making a deal). As has been pointed out, some of the $7k difference you are seeing is profit that went to the first dealer and some is the profit for the second. The $27k number has nothing to do with it, nor does what the local guy is asking for similar goods (note: Asking for $20k is not the same as getting it).
By the way, consignment deals usually pay better than cash offers. This is where the dealer finds a customer and makes the sale but they aren’t putting out their money for the inventory. The primary downside is that you don't get paid until they do, which can sometimes be a while. As mentioned above, dealers are a bit skittish right now about taking into inventory expensive items and this tends to drive down prices. If you’re carrying all of the inventory costs they’re generally happier about it and will work for a smaller margin. If the local people can actually get those $20k deals they may be interested in making this sort of deal with you.
Let us know how it goes.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
It is, of course, the way of selling things that sellers always want more than buyers want to pay and this leads to something of a conflict since your interests are mostly opposed (they’re aligned in that both sides are interested in making a deal). As has been pointed out, some of the $7k difference you are seeing is profit that went to the first dealer and some is the profit for the second. The $27k number has nothing to do with it, nor does what the local guy is asking for similar goods (note: Asking for $20k is not the same as getting it).
By the way, consignment deals usually pay better than cash offers. This is where the dealer finds a customer and makes the sale but they aren’t putting out their money for the inventory. The primary downside is that you don't get paid until they do, which can sometimes be a while. As mentioned above, dealers are a bit skittish right now about taking into inventory expensive items and this tends to drive down prices. If you’re carrying all of the inventory costs they’re generally happier about it and will work for a smaller margin. If the local people can actually get those $20k deals they may be interested in making this sort of deal with you.
Let us know how it goes.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
- Joined
- Jan 11, 2006
- Messages
- 58,582
Pearlman''s does take diamond rings on consignment and their commission is probably not more than 15%. We see rings sold on there all the time. If that ring would currently sell for maybe $18,000 new, I would think that you could get more than $10,000 for it. As others have said, forget the inflated appraisal. An item is usually worth what you were willing to pay for it.
The other suggestion is to contact James Allen. They will sometimes do trades on certified diamonds, and since this one is GIA EXcellent, you might have a good chance of getting a better deal than you''ve been offered. (Diamond vendor links are under the Resources tab.)
The other suggestion is to contact James Allen. They will sometimes do trades on certified diamonds, and since this one is GIA EXcellent, you might have a good chance of getting a better deal than you''ve been offered. (Diamond vendor links are under the Resources tab.)
neatfreak
Super_Ideal_Rock
- Joined
- Feb 17, 2007
- Messages
- 14,174
- Status
How Are Diamonds Made? Natural vs Lab-Created Explained
How Are Diamonds Made? Natural vs Lab-Created Explained - 08/05
Top Wedding Ring Brands for Every Style and Budget
Top Wedding Ring Brands for Every Style and Budget - 08/05
Where to Buy Lab Grown Diamonds: Best Places Compared
Where to Buy Lab Grown Diamonds: Best Places Compared - 08/05
300x240.png)