Why is this diamond''s EGL value so high?

[boobear]

I''ve been reading the boards and honestly can''t figure out why the EGL appraised value of this stone is $8,070. The ring is already purchased and non-returnable which doesn''t concern me because even if there is something considerably "off" with this ring, I''m happy with the way it looks on my finger and know I can always upgrade later if the I1 bothers me. Can someone explain the value for me? I''ve heard that EGL often inflates the price, but it still seems very high for what is listed. Thanks!

I pulled this info directly off of http://www.gemlabexperience.com/customerlogin.html.

Weight 1.03 ct.
Shape ROUND BRILLIANT
Color G-H
Clarity I1
Measurements 6.23 - 6.2 x 3.9 mm
Depth 0.0
Table 0.0
Crown N/A
Pavilion N/A
Girdle N/A
Polish N/A
Symmetry N/A
Fluorescence NONE
Culet NONE
Cut Grade

 

[oldminer]

Some appraisal firms set arbitrarily high values on items and get away with it. No Rules, sort of like the Outback Steakhouse.

Some sellers ask arbitrarily high prices to see if you'll bite or offer less. No Rules about this either.

A VALUE is a computed amount, and may not be directly related to the asking price. There are ethical concerns with being realistic, but No Rules is still a big part of the mix.

I hope this gives you an idea of why something may seem wrong. It might just be wrong, but only a minority of consumers realize it.

 

[pricescope]

Boobear, welcome to the forum

David answered already I'm not as fast

... Unfortunately, it is in appraisal practice to put appraisal value much higher than real resale value. (it looks like everybody is OK with it: vendors, most customers, and insurance companies).

If I'm not mistaken EGL uses some software to evaluate appraisal value and the pricing they use might be set up higher than in the real world.

Do your own price comparison on similar diamonds or get it appraised with independent appraiser. There are also a few thorough discussions on this board about appraisal process (you can find some in FAQ).

See also regarding over-inflated appraisals: Diamonds: Is there such a thing as 'a deal' (watch video) and JEWELRY AT HALF-PRICE? WELL, KIND OF

 

[Modified Brilliant]

Dave is right on....

It''s like the Outback Steakhouse except No Rules, Just Wrong.

The more things change in this industry..the more things stay the same.

The phrases "guaranteed to appraise for double" and "50% off the regular ticketed price" are meaningless and
always will be.

www.metrojewelryappraisers.com