15 replies to this topic

[sellingadiamond]

Hello all and thanks for a great Forum.I have an approx 1 carat stone informally called "very very nice" by a few local jewelers that I wish to sell.I am sending it to GIA for "Diamond grading report",report # inscribed on girdle, and "Sealing".
I have read the forum faq's and other threads. It seems most talk about retailing it via Ebay, etc.Havent seen any disscussion re selling to a dealer and best way to do so. I assume the GIA'ing and sealing makes it more of a sight unseen sellable commodity like.I am understanding that once i get the GIA report back, a dealer can look it up on the Rappaport sheet and make an offer over phone contingent on final exam.On the average, what % difference will i relize retail$ vs wholesaling in this situation?? Thank you for the help.Am I making the correct choice of GIA services with object being to sell the stone?

[denverappraiser]

I don’t know any dealers who would be willing to buy a sealed stone that they can’t inspect so I have doubts that this portion of the service is going to do you any good. Why are you having it sealed?

Prices paid as a function of the Rapaport list will vary quite a bit depending both on what you have and who you are selling to and I wouldn’t describe the Rap numbers as ‘wholesale’ in any case. 25% - 50% of the Rap listed prices is fairly typical on a consumer resale. Occasionally you can get more, occasionally you’ll get less.

GIA grading is well regarded and certainly makes the process easier. Whether you will get enough of a premium to justify the GIA costs as well as shipping and such will depend on what you have, who the dealer is, and what your patience level is like as well as your time pressures, cash flow and similar outside forces. With stones over a few thousand dollars it’s usually worth the trouble if you’ve got the time and can afford it.

Neil

[diamondsbylauren]

Does GIA even do that? I've never seen or heard of that.
Neil's answer was spot on- sealing, in general makes no sense at all.
I can;t imagine a dealer buying a stone sealed in plastic....

IN terms of what you can expect- I'd say about 30% of retail pricing, based on the internet.
If you can find a private individual who wants it, you could do a lot better- maybe 75% of prices you see online.....

Edited by diamondsbylauren, 06 May 2010 - 10:12 AM.

[sellingadiamond]

Does GIA even do that? I've never seen or heard of that.
Neil's answer was spot on- sealing, in general makes no sense at all.
I can;t imagine a dealer buying a stone sealed in plastic....

IN terms of what you can expect- I'd say about 30% of retail pricing, based on the internet.
If you can find a private individual who wants it, you could do a lot better- maybe 75% of prices you see online.....

Regarding the sealing - In the "Collector coin" world there are a few companies such as GIA . They grade the coins and seal them. These are then traded sight unseen based on the grading, and sold pending final opening of seal and final exam. The deal is made baswed on the grading, but then at the end contingent on a final exam. I would have thought it would be similiar in diamonds. Thanks for your reply.Sellingadiamond

[diamondsbylauren]

I'd think a coin could be better examined in a sealed container- plus coins are a more "known" item.
A 1925 Indian head penny in mint condition ( for example) is far more consistent in value from one to the next- compared to 1.00 G/SI1 RBC diamonds.....

[denverappraiser]

It’s also a lot easier for improper care to result in damage to a coin and the packaging serves as protection. Not too long ago, Collectors Universe, the largest coin grading outfit in the world by far, made a bet that they could move from coins to diamonds and gems and take out GIA as the market leader. They invested millions of dollars in buying and promoting GCAL, AGL and Gemprint. The whole thing proved to be a terrible plan and they sold off the parts last year after losing a fortune and then some. Personally I'm amazed that it's as successful as it is with coins, comics and sports cards (also Collectors Universe dominated fields) but the diamond business is it’s own little microcosm and GIA rules the roost. I don't think they've faced anything like it in any other field.

Neil

[davidelevi]

I suspect the answer lies in David's observation. A coin is (save rare and valuable errors - which are anyway known and categorised) like any other coin of that type, and so is a comic and a sports card. The production processes they go through ensure that. For diamonds, almost the opposite is true, and the production process has far less control over the final product than typical "collector items". This makes the market much less liquid, and expertise much more valuable (can't buy "by the book" - or the rap) - hence the need for detailed examination and the large transaction costs.

[sellingadiamond]

Ok guys, so if the sealing with the grade is not good, how do I market this thing to best offer if they are not within easy driving distance???

I suspect the answer lies in David's observation. A coin is (save rare and valuable errors - which are anyway known and categorised) like any other coin of that type, and so is a comic and a sports card. The production processes they go through ensure that. For diamonds, almost the opposite is true, and the production process has far less control over the final product than typical "collector items". This makes the market much less liquid, and expertise much more valuable (can't buy "by the book" - or the rap) - hence the need for detailed examination and the large transaction costs.

[denverappraiser]

‘Best’ is a tricky question. For most consumers, you have 3 basic approaches to selling:

You can retail it directly to another end user. This can be to friends, friends of friends, ebay, craigslist, hobnobbing at the bar or whatever. This is where the top dollars come from but how well it works depends on things like who you’re friends with, how good you are at writing advertisements, your tolerance for creeps and wierdos, etc. This is also where the highest risks happen and people routinely waste a lot of time, money and aggravation chasing the highest possible price without actually getting it. ASKING top dollar is not the same as GETTING it after all.

You can sell to a professional dealer who will then be reselling it to his/her clients. This tends to be the fastest and easiest approach but it also usually yields the least money. Potential buyers advertise in the newspaper, yellow pages, Internet, signs about town and just about everywhere else. Shop them against one another and see who offers the best deal.

Consignment. If you’ve got the right item, you may be able to make a consignment deal with a dealer where they show it to their clients and you get paid as soon as they sell it. This usually pays more than an outright sale to a dealer but you sometimes have to wait and you have to care how things are progressing (are they properly displaying things, are they paying their bills, are they even still in business). Most stand alone and Internet jewelers that sell 'estate' jewelry have a consignment program and those that do are usually thrilled to talk to you about it.

None of these approaches will be the best for all sellers or under all circumstances. As you read the above you probably had a voice in the back of your head shouting ‘hell no’ to at least one of those and listening to that voice is one way to narrow down what will work well for YOU.

Neil

[diamondsbylauren]

Good advice by Neil.
I'd add that getting the GIA report is a good idea.
It will make it far easier for you to shop the diamond to dealers.
I'd expect them to have to examine it in person to make a valid offer, but you can save time by first emailing a report to see if they are even interested.
Also very useful if you're taking the private sale route.

Also you can post the specs here, and get opinions on value.

Edited by diamondsbylauren, 07 May 2010 - 02:59 PM.

[Jack7000]

One of the unspoken issues you face is supply and demand. Due to economic conditions, a lot of retailers are overstocked with small resale diamonds; 0.75ct-1.25ct round stones. Every retail jeweler with a brain has spent the last 24 months buying jewelry from the ‘street’ and breaking it down for gold and stones. These diamonds are now sitting in inventory with nowhere to go which drives down the price for the next diamond that comes through the door. I second the others – selling wholesale will net 30-40% of retail but finding a retail customer for a loose stone is also no cakewalk. Get the GIA report, cross your fingers, and be prepared for disappointment.

Good luck.

[barry]

Yes indeed, send it to GIA and have it laser inscribed but not sealed.

Check out and consider using the website www.idonowidont.com to broker your diamond to retail customers.

I believe they work on a 15% commission and you will realize a higher return.

Good Luck!

Edited by barry, 09 May 2010 - 12:10 PM.

[denverappraiser]

Yes indeed, send it to GIA and have it laser inscribed but not sealed.

Check out and consider using the website www.idonowidont.com to broker your diamond to retail customers.

I believe they work on a 15% commission and you will realize a higher return.

Good Luck!

I have heard mixed reviews on the IDNID people. Actually, not so mixed. I've not met anyone who has advertised something there that actually ended in a sale. 15% is a reasonable enough commission and it’s fairly easy to list things there so I suppose that' goes on the plus side. It’s hard to tell how much of this is because of sellers asking unreasonable prices, how much has to do with writing a good advertisement, both of which are common problems, but in my opinion these are some of the things that consignee in a consignment sale is supposed to be helping with. Instead, they seem to have a vested interest in sellers failing to make a deal and then buying it themselves at an unpublished discount. There’s no way to check their stats and see how many of the 470 rings currently listed end up with a sale, how long the sellers have been relisting them etc. A low commission means nothing if it doesn’t result in a sale. When I look at the ads, I’m not generally very impressed and, although I’m not the target market, I think there are other consignment options that are going to work a little harder for their money and that work may produce better results. I may be all wet here, surely they have some satisfied consignment customers out there and it costs nothing but time to give it a try but I'm not convinced.

Neil

Edited by denverappraiser, 09 May 2010 - 02:52 PM.

[barry]

Neil;

Would you list the other consignment options for this Poster you allude to.

[denverappraiser]

I did, several posts ago. Nearly every jeweler or website that sells ‘estate’ jewelry has a consignment option available for sellers of the right sorts of items. In my town alone there’s got to be 20 such dealers that I can think of, and Denver isn’t exactly a jewelry Mecca. Which one is the 'best' for any particular customer will depend on a lot of options and there is no single correct answer.

At least a couple of the dealer participants here do consignments for example.

Neil

[barry]

Thanks, Neil.