Used Diamonds: Disclosure Provided?

[rak4me]

Two recent experiences while diamond shopping have me wondering ... if a retailer is selling a pre-owned diamond, are they obligated to mention this up front? Only if you ask? Or not at all?

Experience 1: One store showed me a diamond with a GIA report from 2000. The diamond had other issues so I didn''t even ask about the ancient report, but seems obvious this was a used diamond. I''m sure the store has not carried it as inventory for 10 years.

Experience 2: Lots of PS posters talk about upgrades and upgrade policies. Even if that is the minority of the buying public (I assume most people stick with their original e-ring stone for life), stores with upgrade policies are receiving used stones--and sometimes very high-quality ones at that. With that in mind, is it possible that some amount of inventory at a seller such as WF, GOG, or BGD is used diamonds or do they sell them in other ways?

And bottom line, let''s say a diamond has been owned before, but the seller has just sent it for a fresh grading report by GIA or AGS. If the report checks out, should the buyer consider it good as new?

 

[Sizzle]

I think most diamonds are preowned, maybe it just has a new certifiicate. Is the "older" certificate what bothers you?

 

[Lisa Loves Shiny]

Date: 4/20/2010 10:38:21 PM
Author:rak4me
And bottom line, let''s say a diamond has been owned before, but the seller has just sent it for a fresh grading report by GIA or AGS. If the report checks out, should the buyer consider it good as new?

I think for the most part it should be considered good as new. But you will need to inspect it under a loupe or gem microscope to be sure. And of course getting an independant appraisal would be a good idea too.

 

[beezygal]

interesting topic. I guess... you will know it''s "new" for sure.. if you purchase the diamond from a cutter?

 

[WinkHPD]

Date: 4/20/2010 10:38:21 PM
Author:rak4me
Two recent experiences while diamond shopping have me wondering ... if a retailer is selling a pre-owned diamond, are they obligated to mention this up front? Only if you ask? Or not at all?

Experience 1: One store showed me a diamond with a GIA report from 2000. The diamond had other issues so I didn''t even ask about the ancient report, but seems obvious this was a used diamond. I''m sure the store has not carried it as inventory for 10 years.

Experience 2: Lots of PS posters talk about upgrades and upgrade policies. Even if that is the minority of the buying public (I assume most people stick with their original e-ring stone for life), stores with upgrade policies are receiving used stones--and sometimes very high-quality ones at that. With that in mind, is it possible that some amount of inventory at a seller such as WF, GOG, or BGD is used diamonds or do they sell them in other ways?

And bottom line, let''s say a diamond has been owned before, but the seller has just sent it for a fresh grading report by GIA or AGS. If the report checks out, should the buyer consider it good as new?

When I take a diamond back in trade, the first thing that happens is I send it back to AGS for a new report. This allows a thorough check for any possible damage and verifies that the diamond is in an "as new" condition.

To me then it is unimportant that it has been preowned and I do not mark it as such on the site. If someone inquires I am happy to say truthfully whether or not it was previously owned, but I think in the past five years only one person has asked this. Frequently when someone trades a diamond in with me they post about it on Pricescope and someone else will contact me asking to have the stone when it returns from AGS as they had been kicking themselves for not getting it before it was sold.

One of my clients traded up four times in a couple of years, and each of her trade ins was immediately sold.

I do not think most people care, but if anyone does, all they have to do is ask and I will be happy to indicate which diamonds have been returned to us in a trade in. It is a remarkably small percentage of my diamonds, as most ladies will not trade in their engagement ring. I think I may have two on my site currently. Actually one, the other has not come back from AGS yet as it was just traded in last week while I was in Dallas.

Wink