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The new article "A Guide to Selling Diamonds"

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oldminer

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http://journal.pricescope.com/Articles/66/1/A-consumer%e2%80%99s-guide-to-reselling-diamonds.aspx

A very worthwhile article to read and understand if you find yourself in the position of needing to or wanting to sell a diamond or most any jewelry item beyond scrap metal. Things are somewhat different in Philadelphia and New York than they might be in Denver for sellers. There are more professional buyers in my region than in the center of the US. More competition can mean many things, but I think it may be easier to find more potential buyers here than in many other places around the USA. You still have to count your fingers and toes after leaving some of these "buyer''s" offices. It may not be a fun experience, but it is capitalism at work.

For years I have been a buyer of diamonds, better jewelry and costly colored gems. To say the market is a bit in oversupply would be an honest statement these days. You can sell, but you simply won''t get big bucks or anything like retail from a dealer-buyer unless you have very collectible, very rare or very specifically desired merchandise. My own policy has been to make a no obligation offer to folks who have an item or two to sort of test the water and see where they are in terms of making a decision. A consumer who immediately puts away an item before an offer is even given is giving me a very strong signal that there is no way I''ll ever buy the item and it is a waste of time to make them a serious bid. Body language and your actions at the time of the bid are going to be important to benefit you. When I am confronted by a hundred items for an offer, I again test the water with a piece or two. If there is no hope there are two ways to proceed. One is to call it quits and wish them well. The other way which has worked for decades is to agree to make an offer on the lot or on every item individually for an hourly fee which will be refunded based on the total amount I eventually purchase. If I buy it all, I refund 100% of any fee. If I buy 30% of the value, I refund 30% of the fee. Many consumer--sellers find this a fair arrangement since my time is how I make my living and they want the information only an expert can provide to them. If they go to another bidder armed with my offer, they can ask an amount high enough to recoup my fee plus whatever percentage extra they feel they must have. If they get a far higher price from someone else, then no one has been harmed. If they return to me and want to make the deal, then they are no longer fearful, but are well informed.

Most dealer-buyers will ask you "How much do you want?" For someone who is uninformed this is a very stupid question to respond to. For an informed seller, they can give a number suitable for negotiations to commence. High enough to make the buyer interested, and high enough to be able to accept a bit less. If a consumer has no idea of the value, how can they possibly answer this question properly? I admit I have asked some people this question figuring they would show whether they can handle to situation or not. It has never led me to a good purchase although it works for some buyers. If a dealer ask you "How much?", your response ought to be "How much would you give?". If the dealer says, "Would you take $1000?", you should come back with, "Are you offering $1000?", not a "yes" or "no" response. It is a question to be answered by a question. I know this may sound strange, but that''s the game.

I''d think many appraisers, especially those few inclined and able to also be buyers, could adopt this strategy without any compromise to their integrity. I see no conflict of interest charging for my time and standing behind the offer while the consumer can only benefit by the freedom to shop further until they know how to proceed with the liquidation. Of course, if the market drastically changes, an offer to purchase can be abandoned. I give clients fair warning that if markets drastically alter downward, I may not be able to make the purchase. It works both ways, since if things really go way up, I''ll give more on their return, too.

In the coming months there may be many sellers of jewelry who know very little about the market. Becoming informed when you are selling is every bit as important as being well informed when buying. I don''t need documentation on diamonds to be a buyer, but many buyers need such paperwork. They have the money, but really are not gemologists. Some consumers want to retail their items and they need appraisal work which will assist them in making a retail sale. Appraisers certainly can provide this for them. There are many ways to sell jewelry, but no way to do well without expert knowledge of the process.
 

Modified Brilliant

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A timely and comprehensive article...thanks Neil!

Also, consumers should know that asking for an "appraisal" on a jewelry item
will most likely get you an "insurance appraisal" (fee based).

An "offer to purchase" is usually at "no charge" and may still be called an "appraisal" by
the average consumer/seller.

Always be very clear if you speak to an appraiser about the reason(s) for your appraisal.

We get many calls from folks who ask if "we do appraisals" when in fact they really want to sell an item.

www.metrojewelryappraisers.com
 

strmrdr

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Excellent work Neil!!!!!
Thank you!
 

oldminer

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I''m most inclined to offer correct and honest opinions when I am being compensated for the time being spent. No one is entitled to free expert advice and honest assistance, unless they are a close friend or family member. So long as the fee is refundable upon acceptance, and there is no pressure placed on the client to accept under duress, I''d contend the ethics of the situation are quite clear. Having been the ethics chairman of the Accredited Gemologists Association years ago and currently holding the same position with NAJA for several years, I believe I speak with some degree of credibility. Now, I understand that an association like AGS puts constraints on its Independent Certified Gemologist Appraisers members to neither buy or sell, but from my 20 years in AGS as a very unwelcomed appraiser, I think that this is simply to keep an element of business in the hands of their retail members and has nothing whatsoever to do with ethics or fair business practices.

When all parties know you have a vested interest in the items being examined and when this is made a part of your appraisal work, then there is no line being crossed. Remember, this is not a federally related appraisal situation, but one between individuals. So long as your interest to buy is on the report, then it is completely ethical. If an appraiser can''t provide an honest report due to overwhelming greed and stupidity, then we would have a huge ethical problem. There are always dishonest exceptions that I rarely have needed to address, but all things are possible.

It is a very safe thing to neither buy or sell, but it is not a natural requirement on all appraisers. It can be a rule of practice an association chooses. I just have not seen a true reason for it ever provided which counters what I have presented. I have certainly successfully debated this topic more than once. Still, if a consumer feels their appraiser can''t be a buyer, then I say, okay I will provide you the appraisal without my willingness to buy. Just pay the fee and have the advice you need, no problem. This just can''t be for free. We wouldn''t want to be accused of doing an unprofessional rush job, either.
 

denverappraiser

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It’s not your ethics or even the quality of your advice that I’m debating. It’s certainly not about the codes of ethics for AGS, NAJA or AGA. Experts provide ‘free’ advice in the form of sales or purchase presentations regularly and it is simply not correct to say that the only way they are compensated for their time and training is by an hourly fee. How they get compensated is as part of the deal and the paycheck comes is when they sell the merchandise later. In fact, that’s how the vast majority of people get paid for nearly every jewelry transaction. The time ‘wasted’ making bids on things that they don’t actually end up buying is offset by the profits made on the things that they do. In the aggregate they find it is worth their trouble and they are under no obligation to make a bid on something where they think there’s isn’t a sufficient likelihood of a deal happening as a result. That does raise a perfectly valid question though.

Why would someone want to pay for information that they can get for ‘free’?

The value lies in the reliability of the source as it relates to the client. For a client to make an informed decision, the credibility of the information they are using is critical. Since they aren’t experts themselves and they MUST rely on outside advice, this makes the credibility of that outside source equally important. The more money is involved the more important it becomes. It’s like going to court without an attorney and relying on the advice of opposing council. Even though every attorney is bound by their own ethics rules not to provide false or even misleading information and what they have to say therefore seems both free and reliable, this approach is an almost guaranteed failure. A similar situation would be if someone were selling a house and the realtor they hire to assist turns out to be the interested buyer themselves. Even if they are going to make a reasonable offer they should defer the sales adviser position to someone else or the client is running a substantial and, in my opinion, completely unnecessary risk. I'm not saying the Realtor is crooked or that their offer is bad, only that the client shouldn't be relying on them to set the price.


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

oldminer

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You can gets lots of free information, but many times the quality of free information is equal to its cost, no value. There is always the taint on accuracy for advice given for free. What string was attached, was there some reason for the free advice that remained hidden?

We give lots of free advice on Pricescope and much of it has great merit, but certainly not all of it is equally as valid. Many uninformed folks give their advice and it is not always the best. It is a balance that we all seek between paying too much and sometimes paying too little. What we want is reliable advice when we need it. If one gets it for free, that''s fine. If one can''t get the advice they require for free, then there should be a viable and safe alternative.
 

strmrdr

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Dave there are very few people I would trust to do it your way.
I think Neil''s suggested way is the right way in the vast majority of cases.
The sad truth is that the temptation to take advantage might be to great for some people.
That you don''t is kewl but your not the majority either.
 

Wink

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LOL, Silly me.

I read the one page report and thought, hmm, this is a good start, but where is the meat.

Then I realized the next time I went to read it that it was in reality many pages long, and a most excellent article worthy of much discussion.

Very nice Neil!

I am in the "If I am making an offer I do NOT charge for it" camp. Not only is it ethically prohibited by any appraisal organization that I have ever belonged to, it just feels wrong to me to charge someone for making an offer. If I do not make an offer and they want something written, then I tell them my hourly fee and include the time I have already spent with them as part of that fee.

Of course, when making an offer, I do not write up anything that can be construed as an appraisal that can be taken from my office. I will verbally tell people what I believe they have and show them what I sell and tell them what I will need to do in the area of recutting, getting certified, etc etc before making them an offer, or as in most cases, declining to make an offer as what they have simply does not work for me except at scrap prices.

When accepting an article for consignment there are is a different conversation. We discuss the pros and cons of recutting, the costs, and also the costs involved with getting a GIA or AGS grading document. They are free to follow my advice or not. I had one case where a lady left a 1.36ct diamond with me for years because she did not want to spend the money to recut to Infinity standards.

After 3 years with not one offer on her diamond she allowed me to recut it, sold it in less than one month after it was recut (that was a little lucky, but still it would have sold in a few months at most as it recut to a 1.20ct F-VS1 with AGS 0 cut grade and was now a Crafted by Infinity quality diamond.) Oh, and did I mention that she received nearly $800 MORE for her diamond after it was recut, even though she had to pay the cutting and AGS report fees?

Neil, I think your advice for a seller to get a good appraisal report is excellent for any article to be sold for $1,000 or more. For smaller items it probably will not be cost effective. I can honestly say, unfortunately, that in my many years of doing business that I have NEVER had even one client come to me to sell who actually had one.

No wait, I take that back. I did sell a WhiteFlash stone for a lady who had all the paper work from WhiteFlash (excellent paper work by the way) and one of my own clients who brought in my paper work after she got a divorce from her husband. Still two exceptions in more than thirty years of business shows that very few are aware of, yet alone following, your excellent advice.

Wink
 

Wink

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Now that I have had a couple of hours to contemplate your wonderful article, here is a thought that comes to me.

What an incredibly well written article! I could not have written it any where near as well, nor with as much credibility since I am a buyer and a seller. Your unique position made it possible for you to write it and to have it heard LOUD AND CLEAR!

Wink

 

strmrdr

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Date: 1/11/2009 3:56:41 PM
Author: Wink
Now that I have had a couple of hours to contemplate your wonderful article, here is a thought that comes to me.


What an incredibly well written article! I could not have written it any where near as well, nor with as much credibility since I am a buyer and a seller. Your unique position made it possible for you to write it and to have it heard LOUD AND CLEAR!

Wink

I agree, I view it as the best procedures when selling guide.
I don''t think I would follow every step in as much detail for a $500 sale but for a $5000 sale I certainly would.
Even for a $500 sale the same steps need to be carried out but not to such a degree.
 

Wink

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Date: 1/11/2009 4:06:50 PM
Author: strmrdr

Date: 1/11/2009 3:56:41 PM
Author: Wink

Now that I have had a couple of hours to contemplate your wonderful article, here is a thought that comes to me.


What an incredibly well written article! I could not have written it any where near as well, nor with as much credibility since I am a buyer and a seller. Your unique position made it possible for you to write it and to have it heard LOUD AND CLEAR!


Wink

I agree, I view it as the best procedures when selling guide.
I don''t think I would follow every step in as much detail for a $500 sale but for a $5000 sale I certainly would.
Even for a $500 sale the same steps need to be carried out but not to such a degree.
Agreed my friend. I am constantly amazed when I see things and hear what has been offered for them. Some of the offers are in my mind nearly criminal for how badly they abuse the uninformed seller.

I hope it is permitted to tell a little story on this.

I once had a lady in with a fairly nice ring to sell. I showed her the things that I sell and went through my song and dance about what I would pay for a consignment and what I would pay for an out right purchase and told her truthfully that it was half of wholesale for the diamond and melt for the gold and that it was NOT a good offer and that she should NOT take it. She got all mad that I was some kind of crook and left in a huff.

Three days later she sheepishly appeared at the door and asked if she could come in.

Then she proceeded to tell me if she wasn''t sure if I was really honest or really stupid, but would I still write her a check for what I offered a few days earlier as she really needed the money.

I laughed that she had a strange way of making friends and that I might, but first I needed to understand her cryptic comment so that I would know if she was telling me I was honest or stupid.

She looked all flustered for a moment then blurted out, "Well, you said you were offering half of wholesale, every one else offered me way less than half of what you were offering and told me they were offering wholesale, so either you are totally honest and they are all liars or you are stupid beyond belief. Either way I need the money."

I just laughed and wrote her the check. She asked, "Well which is it?"

I told her to come back and see if I was still here in a year. If I was then that should be all the answer that she needed. That was five or six years ago.

Wink

P.S. It still makes me chuckle, every time I remember it. I want to thank Neil for making me remember it again today.
 

glitterata

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Neil, thank you for that extremely clear, well written, and useful article!

Wink, you''re being too modest about your writing skills. I work with writers professionally, and if they could all express themselves as clearly and engrossingly as you do with your sense of narrative and humor, my life would be far easier.
 

Richard Sherwood

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I don't think I've ever seen a more clear explanation as to the benefit of an independent appraisal when selling an item.

A buyer is almost never going to be able to offer an unbiased appraisal of an item which somebody wishes to sell. It just runs counter to all their self interests.

Let's take for example, a fine Tiffany or Cartier piece, with all it's nuances. Would a buyer point out all these nuances, and the appropriate premium they command?

Or would they present the seller with a bleak, negative picture of the value of their piece?

Buyers have one picture of the market, because they want to make a profit. Sellers are entitled to the other picture of that market.

I think you should decide if you're an appraiser, or a buyer & seller, and then stick to that category.
 

denverappraiser

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Date: 1/11/2009 1:32:17 PM
Author: Wink

I can honestly say, unfortunately, that in my many years of doing business that I have NEVER had even one client come to me to sell who actually had one.

Wink
Wink,

A seller who gets an expert opinion in advance so that they know what they’re selling may or may not choose to show you this report preferring instead to let you make your grading and your bid in isolation. This is an entirely reasonable strategy and in this case you would never know what homework they’ve done in advance. This is very much in the realm of answering David’s question of ‘How much do you want?’ and I agree with him that it’s almost always a bad idea to provide a straight answer to this. ‘I WANT $10,000,000. How much are you willing to give?’

I would again point to the analogy of professional advice from an attorney. By all means you should be consulting with them over the merits of your case and how much you should settle for in a lawsuit but I definitely would NOT recommend showing this memo to your opponent.

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

Wink

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Date: 1/12/2009 8:41:16 AM
Author: denverappraiser
Date: 1/11/2009 1:32:17 PM

Author: Wink


I can honestly say, unfortunately, that in my many years of doing business that I have NEVER had even one client come to me to sell who actually had one.


Wink
Wink,


A seller who gets an expert opinion in advance so that they know what they’re selling may or may not choose to show you this report preferring instead to let you make your grading and your bid in isolation. This is an entirely reasonable strategy and in this case you would never know what homework they’ve done in advance. This is very much in the realm of answering David’s question of ‘How much do you want?’ and I agree with him that it’s almost always a bad idea to provide a straight answer to this. ‘I WANT $10,000,000. How much are you willing to give?’


I would again point to the analogy of professional advice from an attorney. By all means you should be consulting with them over the merits of your case and how much you should settle for in a lawsuit but I definitely would NOT recommend showing this memo to your opponent.


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

Professional Appraisals in Denver
Agreed, but one can usually tell when they are dealing with a complete rookie or a semi pro. Trust me, I do not believe the majority of people I have dealt with over the years were good enough actors to convince me they were rookies when they were in fact educated.

Also, what would be the advantage? Most sellers will get more if the buyer believes them to be astute and less if the buyer believes them to be ignorant of what they have. Such a game would be detrimental to them in this situation.

Wink
 

denverappraiser

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If you show a buyer an appraisal, the value conclusion will be the maximum that they’ll likely be willing to pay. Usually they will automatically discount it steeply. It’s just Pavlovian conditioning for buyers who see inflated appraisals day in and day out. If the appraiser is a reporting a realistic resale value in the appropriate market, this puts the client at a perceived disadvantage. A similar situation applies to the grading. If they show a buyer an appraisal report assigning a particular grade, the buyer may discount from that if they feel it’s in error but there’s little likelihood that they’ll go up, even if their own assigned grade would have been higher. They can always produce the report later if they think it's going to be in their benefit to do so as part of the negotiation.

I agree that novices are easy to spot and that the vast majority people don’t do their own due diligence because they think it’ll save them money by avoiding an appraisal fee but zero in 30 years is a pretty sweeping statement.

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

Wink

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Date: 1/12/2009 9:44:40 AM
Author: denverappraiser
If you show a buyer an appraisal, the value conclusion will be the maximum that they’ll likely be willing to pay. Usually they will automatically discount it steeply. It’s just Pavlovian conditioning for buyers who see inflated appraisals day in and day out. If the appraiser is a reporting a realistic resale value in the appropriate market, this puts the client at a perceived disadvantage. A similar situation applies to the grading. If they show a buyer an appraisal report assigning a particular grade, the buyer may discount from that if they feel it’s in error but there’s little likelihood that they’ll go up, even if their own assigned grade would have been higher. They can always produce the report later if they think it''s going to be in their benefit to do so as part of the negotiation.


I agree that novices are easy to spot and that the vast majority people don’t do their own due diligence because they think it’ll save them money by avoiding an appraisal fee but zero in 30 years is a pretty sweeping statement.


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

Professional Appraisals in Denver
True, but I did correct that to state that a Pricescoper did have all the necessary information and of course one of my clients. Please understand that I buy very little, I am much more in the selling end of things and I do not advertise that I buy. There is this thing I have about sleeping nights and I have always disliked taking advantage of people needing to sell and the prices that I can afford to pay, even though higher than others in the area are paying, always seem like taking advantage to me.

There is always a sad story and for me jewelry is about joy.

Regardless, I consider your article to be genius and I appreciate your thoughtfulness in writing it.

Wink
 

Wink

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Date: 1/11/2009 5:42:35 PM
Author: glitterata
Neil, thank you for that extremely clear, well written, and useful article!


Wink, you''re being too modest about your writing skills. I work with writers professionally, and if they could all express themselves as clearly and engrossingly as you do with your sense of narrative and humor, my life would be far easier.
Thank you kind lady! If this was facebook I would send you some hugs or something.

Wink
 

strmrdr

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Date: 1/12/2009 9:44:40 AM
Author: denverappraiser
If you show a buyer an appraisal, the value conclusion will be the maximum that they’ll likely be willing to pay. Usually they will automatically discount it steeply. It’s just Pavlovian conditioning for buyers who see inflated appraisals day in and day out. If the appraiser is a reporting a realistic resale value in the appropriate market, this puts the client at a perceived disadvantage. A similar situation applies to the grading. If they show a buyer an appraisal report assigning a particular grade, the buyer may discount from that if they feel it’s in error but there’s little likelihood that they’ll go up, even if their own assigned grade would have been higher. They can always produce the report later if they think it''s going to be in their benefit to do so as part of the negotiation.


I agree that novices are easy to spot and that the vast majority people don’t do their own due diligence because they think it’ll save them money by avoiding an appraisal fee but zero in 30 years is a pretty sweeping statement.


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

Professional Appraisals in Denver
That brought up a good point.
Whats a good way to deal with having a real appraisal rather than a 2x inflated appraisal in a selling situation?
 

denverappraiser

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Although you can extract a fair amount of good information from your appraisal like the weights and grades of various things and the photographs that you can then use in your advertising, I don’t generally recommend simply using the appraisal report as a direct ad. When you show an appraisal report, especially in an advertising type of context, people automatically zoom in on the value conclusion and then apply a discount to that. It seems to work better to simply not provide it and the conversation tends to lead the discussion towards the merits or demerits of the piece.

Also be aware that many appraisal reports will contain your address and possibly other information that you don't want to distribute.

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

oldminer

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In a perfect world, bids should be given for free on desired merchandise.

Auction houses place reserve prices for free on items left for auction without charge because they have a vested interest in getting a very good sized buyer and seller commission on the sale when it happens. The reserve price is given for free, but what can you do with it if you don''t leave the item for auction? It is supposed to be the minimum amount that you agree to accept and often is far below the right amount of the actual value. Sometimes it is set way too high, but what the heck, its free, until there actually is a sale at the auction.

Free offers to buy come mostly from professional parties with a high interest in obtaining merchandise in order to to make money, not to own collectibles for their own use. These free offers will naturally start low and only the astute seller, the one with decent knowledge of value, will have a fighting chance to work the offer up to a proper and fair level. These free offers can cost the consumer a lot of money, but it is a hidden cost since there is no openness to the real value, just a negotiation as to what you will agree to sell the items for.

There are some fine exceptions which come to mind in that there are a few truly legitimate buyers who buy at the upper ends of cost and collectibility. They offer highly competitive prices and do not charge, but the ordinary stuff most folks have to sell which is not just gold scrap is difficult to get a real bid on. These big guys don''t want one carat average quality diamonds or heat enhanced sapphires.

Appraisers who neither buy or sell can make appraisals for consumers as to what they might expect to sell items for and also to make them appraisals to use as sales tools in order to advertise the items to other members of the public or the trade. You have liquidation level appraising and retail appraising choices as the appraiser and the way the consumer wants to sell the items will help you tell what sort of value level is appropriate. These appraisers will charge a fee for their work and the consumer must go on to make a sale any way they can. Hopefully the knowledge helps them.

To clarify, my approach has been to make a free offer on a piece or two for any item I might like to buy. This offer, is of course, biased in that I''d hope to sell the item and make a profit. If I can''t buy the items, then I offer appraisal services as the next step forward. These fee based services allow the consumer to have all the knowledge and paperwork they might need to sell to anyone else and they are very free to do exactly that once the appraisal is done. If they can''t do better than the confidential bid prices I have placed on the items during the appraisal report, they can come back and sell the pieces to me while getting a refund of that portion of the fee. While I have read for years about appraisers who do not buy or sell, I would contend that they hold no higher ethical ground than the more complex scenario I often use. Many appraisers just don''t have the money to be buyers. Some organizations try to limit their lowly appraiser members to being non-competitors by virtue of bogus limitations of membership. There are reasons why this belief that unbiased advice can only be obtained from a non-participant, but I cannot think of a weakness in the chain of logic presented here which I often follow with people.

I will paraphrase Strmrdr: Not many people might be trusted to do the right thing, but a few can be trusted. This is what people who might need to liquidate a few items in the coming months should learn about diamonds, and jewelry. It makes Pricescope even more valuable a resource. Paying an appraiser to give you unbiased knowledge is far less costly than going it alone and falling victim to a street smart buyer. There are ways to get around paying a fee for advice and I have suggested the system I use as only one viable alternative to auction galleries and street buyers.

I believe this Journal article is a very worthwhile read. There is a lot to gather in on this timely subject before one starts to go out and sell.
 

strmrdr

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Dave the thing is I know you so it wouldn't be a big deal to me if you made an offer in that situation but if I didn't know you it would be a red flag to me.
It is one of those things that it depends.. I think its better that it not be done as an overall recommendation.
 

asw

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Dear Dave:


A nice find and timely article. When I bought over the counter through a second hand dealers license in CA I had a simple rule. I never asked people what they wanted nor asked why they were selling. I made a bid based on economics and what I thought I could pay and still make a profit. This allowed me to get out of the emotional side of the business. I especially liked your idea of , "If I buy it all, I refund 100% of any fee. If I buy 30% of the value, I refund 30% of the fee."


Of all the sticky issues was spending time with people looking for free appraisals. Consumers miss this a lot and for those of you reading this I applaud Dave''s idea as a very reasonable solution to this problem. Sometimes the best advertisement That some of us have is were "Old" and still in business..........


Were doing something right.


Again nice article


Al Wallace

 

arjunajane

Ideal_Rock
Joined
Jan 18, 2008
Messages
9,758
Date: 1/11/2009 5:42:35 PM
Author: glitterata
Neil, thank you for that extremely clear, well written, and useful article!

Wink, you''re being too modest about your writing skills. I work with writers professionally, and if they could all express themselves as clearly and engrossingly as you do with your sense of narrative and humor, my life would be far easier.
Agreed 100%. A great article and a very interesting conversation here. Kudos to Neil.



Wink, I really enjoy your narratives and little stories, and that last one made me laugh out loud.
Cheers for the smile
 

Todd Gray

Brilliant_Rock
Trade
Joined
Jan 20, 2009
Messages
1,297
What a wonderfully written and insightful article Neil, thank you! The article you’ve written addresses many of the questions that consumers ask when it’s time to sell or consign a diamond or jewelry item that is no longer wanted or appropriate and raises a few points of concern that they might not be aware of. I’m sure that other dealers like ourselves receive requests all the time from people wanting to know how to sell a diamond and that they will appreciate having a resource to refer them to as I know we will! Excellent job and much appreciated!
 

bradg

Rough_Rock
Joined
Feb 11, 2009
Messages
2
My own advice to those looking to sell their diamond in todays market is to leave it on consignment at a local jeweler if at all possible. Due to the influx of supply and the uncertainty in todays diamond market, buyers are making extremely low offers. If you don''t need the money today and your diamond is a decent quality and desirable stone then consignment can pay you a decent amount more than getting an outright payment.
For example, we have a retail store on Long Island and someone today came in with a GIA certified 1.50ct round brilliant F SI1 with an excellent cut grade. My outright offer to him was just under $6k but he ended up leaving it on consignment for $8,200 which is just a hair under what it would cost me to get a similar in the wholesale market. A stone like this will probably move within a month or two at which point he will be getting paid over 33% more had he sold it to me outright. Of course the only negative is the potential for the stone to sit without selling.
I will say though if you have a round stone with a color of D-I and a clarity grade between VS1-SI2 you will be able to sell your diamond rather quickly on consignment.
Even though the retail jewelry market is suffering today, the bridal business is very strong as people are still buying diamonds and getting engaged. If you bring your diamond to a jeweler who has a big engagement ring business your stone can move quite quickly on consignment and you will be paid substantially more $$!!!
 
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