11 replies to this topic

[somethingsmells]

I have a 0.99cttw Round H SI1 AGS1906007 AGS0. This diamond is branded hearts for eternity. I am a laymen that unfortunately has no need for this diamond. I am being told by a broker that I need to pay $200 to get a GIA cert. That it will make the diamond more marketable. He is offering to sell it on consignment for me. He is offering $3326 minus $200 for GIA certification (I am assuming this includes s&i both ways). This AGS cert is from 2000. Any input would be appreciated. I read everything I could find in your forums regarding AGS and GIA and nothing led me to believe GIA would make the diamond more marketable. Which brings me to my final problem. Why should I care if it does make it more marketable? I will receive $3126 no matter what he sells it for. He wants a 90 day exclusive agreement and I need help.

[denverappraiser]

You should care what makes it marketable because it's a consignment deal and if he can’t sell it, you will have wasted 90 days and will still have a stone that you don’t want. Presumably you will only get paid if he actually makes a sale, right? Depending on how badly you need the money, this might be an important concern but at the very least it's an annoyance.

By all means shop him around. $3,126 is a relatively reasonable offer if you can actually get it but if he sits on it for 90 days and then gives it back unsold, or even worse charges you $200 and then gives it back you won’t have gained much. An important question when you enter into a consignment deal is what you think of this dealer's sales ability and consequently what you think the odds are that the deal you want will actually happen. You may find better bids elsewhere but remember that the best deal is from a dealer who can actually make the deal, not necessarily the one who quotes the highest price.

AGS changed the rules in 2005 for what makes a stone eligible for the AGS0 cut grade and this does make stones with pre-2005 reports marginally more difficult to sell but I wouldn’t think it would be enough of a problem in most markets to justify regrading it. Maybe. I suppose it depends on what his plans are for marketing it. There also is something of a consumer bias towards ‘new’ stones and he may be interested in a 2008 dated report and some dealers will send in everything older than a year or so for this reason.

That's a pretty popular set of specs. You might consider posting it in the free classified advertising section of this site and see what sorts of nibbles you get.

By the way, a GIA exam on a 0.99ct. costs $78 plus shipping.

http://www.gia.edu/gemtradelab/31548/fees....diamond_grading

Neil

Edited by denverappraiser, 11 March 2008 - 07:09 AM.

[barry]

Diamonds are not produce and don't spoil with time.

GIA recommends verification and updating of lab reports that are 10 years+ old.

I would agree that you should have the update done by GIA as the GIA name is better known by consumers world-wide and has a more recognizable strong "Brand" name among consumers and dealers.

In your case, it would be a good idea to invest the money and update the lab report as a new Cut Grade system has been introduced by GIA as of 1/1/06 and AGS has updated their Cut grade system as well. This update will help you make the sale as any prospective buyer will probably ask you to pick up the cost for updating and re-verification. Be proactive and do it now.

Good Luck.

Edited by barry, 09 March 2008 - 05:53 PM.

[jan]

An AGS lab report is just as good as a GIA lab report in my opinion. If I was selling a stone of that quality it would probably sell for more about $4700 range. Especially if it is an ideal hearts and arrows diamond.

[denverappraiser]

jan, on Monday, Mar 10 2008, 01:20 PM, said:

An AGS lab report is just as good as a GIA lab report in my opinion. If I was selling a stone of that quality it would probably sell for more about $4700 range. Especially if it is an ideal hearts and arrows diamond.

Jan,

Do y'all do consignment deals with private sellers? If so, how much of that $4,700 would you typically expect go to the seller?

Neil

[somethingsmells]

Thank you all for your prompt responses. I expect the broker to make a fair profit on the work he is doing. I love capitalism and from my research it is very difficult for a layman like me to get anywhere close to the real value of this diamond. I was suspicious when AFTER he received the diamond he first tried to lower his original offer by $200 and charge me $200 to get the GIA certificate. I refused the lower offer and he immediately agreed to go back to original offer if I paid for the certificate. I told him I would need to research his suggestions which brought me to this great site. I spent a couple of hours reading the faq's and forum post's trying to find my answer before I posted this thread. FYI the broker I am dealing with is a reputable broker who has been in business since 1969 has no complaints with BBB.org, ripoffreport.com or thesqueakywheel.com. I think I am realizing that the broker that sold me this diamond was A GREAT salesman. He sold me on AGS and I bought it hook, line and sinker. I realize that I bought this diamond before GIA got into the IDEAL cut grading business. I bought the stone for $4000 in 2001 and it is truly an amazing stone. My wife received so many compliments on its brilliance, people noticed it across a room. I am not in a hurry for the money I have had this stone sitting in my nightstand for a couple of years. I tend to be analytical with important decisions and it has served me well. At this point I am leaning toward splitting his $200 fee with him (GIA charges $89). Worst case scenario he does not sell it and I get it back with a new GIA lab report. I am still open for opinions. He is closed today and I plan on calling him tomorrow evening. Any more advice? Anyone else want to buy it? I have not signed a contract as of yet. Typically I would never consider changing brokers at this point but he new well before I spent $30 to send him this diamond that it had a 2000 AGS lab report and never mentioned any of this before. Thanks again for your help!

[jan]

denverappraiser, on Monday, Mar 10 2008, 12:41 PM, said:

jan, on Monday, Mar 10 2008, 01:20 PM, said:

An AGS lab report is just as good as a GIA lab report in my opinion. If I was selling a stone of that quality it would probably sell for more about $4700 range. Especially if it is an ideal hearts and arrows diamond.

Jan,

Do y'all do consignment deals with private sellers? If so, how much of that $4,700 would you typically expect go to the seller?

Neil

We charge a 15% broker fee when we sell on consignment. We generally do that for our clients so they don't take a loss.
A stone of that quality I wouldn't mind selling for the poster here though if they need help. At the $4700 price he would get $3995 in return.

Edited by jan, 11 March 2008 - 06:43 AM.

[denverappraiser]

Jan,

That's very reasonable. Generous even. Do you think it would be more 'marketable' in in your store for it to have an updated report?

Neil

[jan]

In store lots of shoppers don't really care about the date on the lab report. Online however they get more particular. So an updated report can make it more marketable in various marketplaces. We reach both marketplaces of online and in store.

[somethingsmells]

Ok...
Part 2.

I decided I was uncomfortable with the process and called to get my diamond returned and now the broker is offering me $3100 cash paid today, no cosignment. I feel this is fair but just wanted to get your expert opinions!!!

[denverappraiser]

I suppose it depends on how much you like your broker. Jan’s got an offer on the table for an extra 28%. As I said a few posts ago, you do need to assess what you feel about the comparative credibility of both dealers and there’s something to be said for $3100 in hand vs. $3995 promised but that’s a considerable difference if you’re not jonesing for the money right away. Diamond Brokers of Florida (Jan’s company) is a large and well established outfit. They should be easy to research to see if others have been happy doing business with them. Personally, if I was the seller here I would probably be Googling DBOF and making a phone call to Jan to figure out the details.

Neil

[somethingsmells]

I spoke to Jan and I think I now understand why the other Broker wanted a GIA lab report (I knew something smelled bad). My diamond is actually a .999 ctw triple ideal. Jan felt that GIA would more than likely call this 1.0 ctw which would significantly increase the value. I have decided to try my luck with Diamond Brokers of Florida. I will keep everyone posted.