Upgrade

[JOHNZAK]

I purchased a 1 carat diamond ring in 1995. The diamond is as follows:

Round
1.00 carat
Clarity SI1
Color I
Table 59%
Crown Angle 32 degrees
Pavilion Angle 40 3/4 degrees
Polish good
Symetry good

I want to upgrade the diamond from 1 carat to 1.25 carats. I am working with the original jeweler, but I am concerned that the trade in value for my 1 carat stone is significantly below what it should be. The trade in value being offered is only 8.8% above what I paid for it in 1995. This does not seem reasonable to me. The 1.25 carat srone is currently priced at $9,800.

Any help will be appreciated.

 

[vslover]

If they''re offering you *more* than what you paid for it, you''re doing well. Usually you only get the amount you paid for the ring (or less) in trade.

 

[JaxBradGG]

This is something that always confuses customers. I try to explain it like this. Back in 1995 profit margins on diamonds for retailers were considerably more than they are today. Most customers expect to come in and have the diamond that they bought 10 years ago to have doubled in value. Well the stone might have doubled in value (wholesale value or the amount that it costs the jeweler to buy) but his margins have gone down substantially. The competitiveness that has come from internet sales such as blue nile have made margins in diamonds way less than they have ever been. So basically what i am trying to say is that stone that you bought in 1995 might be worth more now, but he can no longer make as much as he could in 1995. I dont know if this theory is true across the board for all jewelers but it has certainly applied to me. Based on what i am seeing an 8.8% increase form what you paid for it seems VERY reasonable. Try taking it somewhere else and see what they give you! I guarantee it isnt 8.8% more than you paid in 1995!!!

 

[WinkHPD]

Yeah, back in the old days! What he said.

Not to mention that you are not trading up very far. I had a couple in yesterday looking to trade in a set they bought at a Mall store.

They could only trade it in at the mall store for what they paid, and only if they were trading two times what they paid.

I think your jeweler is treating you very well to give you the 8% increase. You would most likely not get even what you paid if you were trading it in with another jeweler.

Wink

 

[arjunajane]

I absolutely agree with what the others have said. I think the upgrade policy of vendors such as GOG is Very fair and they offer back exactly what you paid. I also say, if they''re giving you extra than thats a great deal!
Johnzak, welcome to PS btw. I know it may be a bit strange as naturally we expect these things to gain alot of value. But the advice you have received here is from the pro''s, so I think you can be comfortable that you''re doing well.