selling to a dealer in the diamond district

[Yorkviller]

Hi all,

I'm looking to sell a diamond ring. I've never done this before, so I'm researching my options. I live in NYC, so the diamond district came to mind. Does anyone have experience selling there? If so, I'd love some help with the following questions. Thanks in advance.

• If I chose to go to the diamond district, how important is it to get an appraisal first?
  I realize that these guys will have to offer me something well below retail price, but what's a fair/typical discount off the retail value? If the stone is worth, say, $10,000 retail (just a made-up number), then what should I expect to get from a dealer? $9,000? $7,500? $5,000?
  Is there any negotiation involved, or is it just a take-it-or-leave-it offer from them?
  Is there anything else I should really be aware of?

Again, thanks in advance, everyone.

 

[MMtwo]

A few questions come to mind.

Is this a larger diamond or a smaller one? Do you have a certificate or have an idea what the diamond's general "stats" are?
Do you need to sell quickly, or can you afford to wait for the best price?

You can sell to a consumer or a vendor. You will most probably make the most money selling to a consumer. However, it's very hard to price a diamond when you don't know what you have. First thing you would want to do it determine the color, size, cut and clarity through a reputable means. This would either entail sending it off for certification (in your case taking it in for a GIA cert right there in the city) or having a gemologist give you a written report of the diamonds stats, including size, clarity and color.

The GIA cert with hold more weight in resale.

Once you know what you have...THEN you can shop around for a fair sale price.

 

[Yorkviller]

Thanks for the quick reply.

It's a larger diamond, and in a gold setting.

I figured the response here would be to get a formal appraisal. So, I'll do that.

I'm looking to sell relatively quickly, which is one big reason why I though of going to a vendor. But if I'll end up losing a lot of money in the process, then maybe I can afford to wait after all.

So, if I went to a vendor, and I had a certificate showing what a fair retail value would be, roughly how much should I expect to lose on the transaction? 15%? 25%? I realize every vendor will be different. I'm just trying to get a feel for the range.

 

[denverappraiser]

It’s not going to be a function of the retail price at all. You may learn some useful information but a 'formal appraisal' will have very little to do with it as far as your buyer is concerned.

It’s going to have to do with the grading. This may be coming from your appraiser but the preferable source is from a grading lab. That’s why the question of size and speed. The best lab for this is right there in NYC at www.gia.edu but they’re expensive and a bit slow. How important that is will vary with the price of the stone. A buyer is going to discount the opinion of ANY other grader and it may be worth the tradeoff, it's going to depend on what you have. Good strategy is not the same for all items.

What is the size and shape? What do you think the grade is? What is your source for those two datapoints?

 

[Evert P Botha]

Hi Yorkviller,


Agreed with Denver Appraiser- take it to a certified or accredited appraiser...some helpful links to locate someone in NY state:
An AGS ICGA (Independent Certified Gemologist Appraiser) or CGA (Certified Gemologist Appraiser) will guide you through this process (including submission to AGS Laboratories or the GIA). http://www.americangemsociety.org/appraiser-search-results?state=32

Whiteflash has a great reference on their website called "How to Sell a Diamond" posted at http://www.whiteflash.com/about-diamonds/tips-and-advice/how-to-sell-a-diamond-1122.htm

 

[Yorkviller]

Thanks very much to all 3 of you. I really have no idea what the actual size/grading is, and it looks like a certified appraisal is the best route to go anyway, so I'll start there. I had already looked at GIA, and I appreciate the recommendation. Also, the WhiteFlash link is concise and clear.

If anyone else has any more advice/info, I would love to hear it all.

 

[denverappraiser]

With many sellers, the expectation is something like this:

Get it appraised, figure out what you have and what it’s worth, then discount from the appraisal value to come to a reasonable price. Show that appraisal report to buyers who then will negotiate based on that discount.

I’m a big fan of appraisals and I think it helps your negotiating position greatly to have an expert on your side of the counter but the above is rarely how it actually works, especially if the buyer is a pro.

Here’s what really happens. You show them the stone(s) and ask them what they’ll pay. They ask you how much you want. You argue about this for a few minutes while you feel each other out and then this then gets tabled for the real work. They inspect the stone, measure it, evaluate it and decide what GRADE they are going to base their bid on and what they are going to have to do to sell it. This may include repairs, it may include lab submissions, it may include both. They may or may not tell you what they’re thinking by the way. Mostly it’s a matter of working backwards from how they plan to sell it, less what it’s going to cost them to do whatever it is that they need to do, (if anything) and however much profit they want to make on the deal.

That’s where it’s useful to talk to an appraiser in advance. It’s not about the ‘retail value’. You can know going in what the grade is, what size it is,what repairs if any will help, what can be reasonably expected to go for in the appropriate marketplace and so on. They may not agree with you, but the appraisal is for YOUR benefit, not theirs. You're the client. For the same reason that they may not tell you what they’re thinking, you may not want to tell them what you already know.

The GIA or AGS lab report is a different issue entirely, even if you end up going there too. That’s a sales tool and it’s about ‘proving’ some of that grading data to your buyer. That ends the argument over at least those items that appear on the report. There are still things to talk about but at least those are done.

 

[WillyDiamond]

If you sell your diamond to a street dealer on 47th St, be prepared to be offered a fraction of what the appraised value is. An appraisal is really for insurance purposes and usually inflated from actual replacement cost. There is a huge difference between what a dealer will sell to you and what he will buy from you. Best of luck.

 

[artdecolover71]

Hi-also after the appraisal, just my two cents- take it to a few reputable jewelers (like for example in NYC-IDJ) and ask for their best price and then consider selling it here as well...I have done this on more than one occasion. Good luck! (as an example, my last ring was appraised at 15k- dealers offered me 3500-4000. I took to a PS vendor who recommended I sell it for at least 8,000- I ended up finding a buyer quickly who paid me a price higher than the dealers but lower than what the vendor recommended bc I just wanted a quick sale because I get antsy).

 

[OoohShiny]

Purely because I'm nosey would you be able to post some pictures of the stone (front on, side on) in a flat, white light, next to something of a known size, such as a coin?

Although it's impossible to grade on that basis, it would give some idea of what you might be looking at