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Diamond And Sapphire Ring For Sale


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#1 cyow5

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Posted 06 September 2013 - 04:14 AM

For sale is a high quality, gorgeous custom ring. Details such as the stone quality are included in the photo of the original insurance appraisal, but the summary is a 0.97 carat diamond, two AA quality sapphires, and set in 14k white gold. This ring was professionally valued at nearly $10,000, so the price of $5,500 is as absolutely low as I can go. 

 

I will be willing to sell the diamond alone, but I would prefer not to. Either way, I will entertain offers. Please email me at cjyow5@gmail.com

 

Thank you!

 

-Caleb

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Edited by cyow5, 06 September 2013 - 04:18 AM.

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#2 cyow5

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Posted 11 September 2013 - 03:30 PM

Thank you! 

 

Personally, I am more for the understated engagement rings rather than the more contemporary, "blingy" rings. However, I seem to be swimming against the current with this and am having a very hard time selling it. To the more experienced on here, am I asking too much, or is just a matter of finding the person whom this ring appeals to? I've had a few jewelers tell me that it can sell for $6,000+ but none of them are willing to buy it and sell it themselves. It was on consignment for over a year at one jeweler, but it never moved (I'm not sure exactly what he was asking - I just knew what my cut would be). 

 

Thoughts? Help?



#3 davidelevi

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Posted 12 September 2013 - 12:39 AM

Caleb - apologies for the unkindness below. This post will be deleted as soon as you ask me to on the forum or via a PM or email (my email address is in my signature at the bottom of every one of my posts).

 

It's possibly both, and some more to boot.

 

1) Price: the most expensive 0.9x H/SI2 princess cut listed on the Diamond Finder here is less than $4,000. A similar looking setting on Blue Nile is about $1100.

 

http://www.bluenile....hite-gold_42412

http://www.diamondre...GIA=1&fLabAGS=1

 

Put the two together, and you end up with a bill below $5000 for a new item... and neither the diamond nor the setting is the cheapest of their kind.

 

You could put together a ring that costs less than $3000 and whose description reads fundamentally the same as yours. I'm not saying it's as nice - but if I read two ads with the same description, and one is "new for $2800" and the other is "second hand for $6000", which one am I going to be more interested in?

 

2) Marketing: you are using two basic props for your sale here: a single photo from which one can barely make up the shape of the sapphires (are they hearts? ovals? pears?) and the diamond is relegated to near invisibility. The second prop is a poor quality scan of an appraisal by an unknown jeweller quoting an unrealistic replacement value (see above) and providing no information beyond the bare minimum (what does "sapphire of AA quality" mean? Are they treated? Natural? Who is calling the diamond H/SI2? The jeweller? GIA? EGL-Israel?).

 

You are selling in a market where professional sellers can provide buyers with facilities such as free shipping, guarantees, return periods, professionally taken photos and videos, financing, independent lab reports on the quality of stones, ... It's understandable that you as a private individual cannot provide any of those, but then your advantage has to be somewhere else; it's usually price (see above again), or - if you are good at selling - at least document your piece properly and jazz it up with quite a few good quality photos.

 

Trying consignment is not a bad idea, but you need to make sure that the consignor is realistic; offering you to retail at a high price is not a sign that they can get that price. You would be much better off choosing a consignor that has a proven history of shifting stuff, even though your take may be lower.

 

3) There is a fashion aspect too, and at the moment 3-stone rings aren't particularly popular. Add to this that selling a second-hand engagement ring is never an easy task. For some reason, a new ring is shiny and blingy, a 100 year old ring is romantic, but a 2 year old ring is neither.

 

In summary:

 

1) Understand what you have. Get a proper appraisal for the purpose of resale. This is not a public document; it's for you to decide what you have and what is a reasonable value/price to ask when selling in different ways.

 

2) Decide whether you need further documentation to help with the marketing and selling (lab reports). The appraiser can help you decide that, and assist with the logistics if required. If you are going the direct 

 

3) Set your selling strategy and channels: pawn shops aren't necessarily a bad choice, depending on what the appraiser tells you.


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#4 cyow5

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Posted 18 September 2013 - 09:35 AM

Hi Davide,

While a little more tact would be appreciated, I agree with everything you are saying. My expectation with the price is that it is going to challenged by a potential buyer, then we will settle on a lower price. If I started at that price, there would be no room for negotiation. As this is not a professional sell, everything I have seen online of the sort is negotiable. Secondly, $3,800 is very close to the price I have been told the diamond is worth, so I am aware that I over-spent with the setting. Significantly.

Since I am fully aware of the situation I am in, the intent of my question was to ask the experts the best way I can get out of it. What is a better price? Is there a better way to sell it? Should I simply hold my price until the right buyer comes along or drop the price to raise demand?

#5 denverappraiser

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Posted 18 September 2013 - 10:07 AM

Most jewelers are pretty good about saccharine coating things and Davide is doing you a favor by being so blunt. 

 

I’m going presume that you were the client who hired that appraiser.  Ask them these questions.  When you hired them, did you tell them that your questions had to do with resale?  Out of curiosity, why did you pick that particular appraiser?  Is this who told you that what the stone is 'worth' is very close to $3800?

 

Your price is high.  That’s ok, you can charge whatever you want and you’re correct that you can more easily come down than go up but there’s a tradeoff.  If the potential buyer never bothers to contact you because the price is high, you never get the opportunity to negotiate.  You lose a customer that MIGHT have been willing to meet your price but you’ll never know because you never heard from them.  The reality is that the vast majority of buyers who see this sort of thing will just move on to the next rather than to try and deal with the seller. You’ve got about 10 seconds of their attention while they read your ad before they click away, never to return.

 

What we have here is a 0.97ct H SI2 princess based on an unsigned claim by an unidentified jeweler.  Sorry, that’s weak and there's nothing about your ad that suggests better.  People will assume the worst, and the worst here is pretty bad.    

 

As with Davide, I’ll be happy to delete my comments later so I’m not cluttering up your ad but, given the above spec I would expect it to sell as a private party deal for significantly than what you see the bottom layer of EGL stones going for at the professional dealers.  You can look up the prices yourself.  I think the ‘premium’ for the fact that it’s mounted already and includes the sapphires on the side isn’t likely to bring you much extra but you never know.  Within the limits of the above comments, it doesn't hurt to try.  Nearly every client who buys a second hand ring like this is taking it apart and making something else. You can ask whatever you want but don’t be surprised if what you hear is silence or offers that you deem to be serious lowballs. 


Edited by denverappraiser, 18 September 2013 - 10:09 AM.

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#6 davidelevi

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Posted 18 September 2013 - 10:18 AM

1) Logic tells you that this is not the right price; it has been on sale at this level for over a year, and you have had nary an inquiry.

 

2) $3800 is the HIGHEST price... you are competing with these people, and have far less to offer. To begin with, the $3800 stone carries a credible lab report attesting to its colour and clarity.

 

3) In my experience, it is extremely unlikely you will get any interest until you get in a price region that is competitive (i.e. as a private seller of a used item, well below the median of the "new", comparable professional offers). The fact that you are prepared to bargain is irrelevant if people don't want to begin the bargaining process. Given my realistic estimate of what you may get for the ring, ask yourself whether you'd expect to be able to bargain someone down by 50 or 75%... or whether you'd simply skip.

 

4) Very practically, the best private sellers realise prices of 70-80% of the equivalent retail price for "as new" items (e.g. the engagement never happened because she said "no"). Let's assume you are one of them, and your ring is "as new". The median price for EGL/IGI/no lab -graded 0.9x H/SI2 princesses is around $2500. A setting much like yours is $1000 or so. Total, $3500; times 80% = $2800. This is your top reasonable selling price. If you are good at selling and bargaining, the item is new and the diamond is a reasonable quality you may get pretty close. if your diamond is below average (poor cut, visible inclusions, visibly tinged) or the ring is not new, take a further cut.

 

5) Once again, bear in mind that at the low end of the price scale, you are competing against $1400 stones and $700 settings... so if you are looking for a relatively quick way out, you may need to price at $1500 or below.

 

I know it sucks compared to what you were told or may have expected, but it's the truth. I have no vested interest in getting you to undersell or otherwise.

 

As above I will delete this upon your request (though since it took a week to respond you may be better off re-starting with a clean ad - this is now a little too "famous", with over 100 views).


Edited by davidelevi, 18 September 2013 - 10:21 AM.

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#7 cyow5

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Posted 18 September 2013 - 10:35 AM

Thanks Neil and Davide,

The value of around $3800 came both from the appraiser and another jeweler from a different region and no connections between the two. The original seller was the same jeweler that did the appraisal and had the ring on consignment for about a year. His suggestion from the beginning was Craigslist since eBay is saturated with sellers. In my mind, Craigslist would be better suited for rings a quarter the price, but I had taken his advice and gotten nothing but spam. Amazon required me to be a licensed retailer or something along those lines. In the car enthusiast world, forums are great for this sort of thing, so I figured I would give it a shot here.

Would a price of $4,500 be more appropriate or still too high? Are there better avenues I should be trying?

Thanks for the input. I appreciate blunt answers even though they sink my ad ;)

#8 cyow5

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Posted 18 September 2013 - 10:37 AM

Davide,

I just now saw your second post. Disregard my last one,

Thanks

#9 denverappraiser

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Posted 18 September 2013 - 11:06 AM

Since I am fully aware of the situation I am in, the intent of my question was to ask the experts the best way I can get out of it. What is a better price? Is there a better way to sell it? Should I simply hold my price until the right buyer comes along or drop the price to raise demand?

 

In the usual scenario, private sellers have 3 basic paths.

 

#1 Direct retail.  This means means things like this sort of advertising, craigslist, ebay, friends and coworkers, friends-of-friends, etc.  You're selling to the next consumer without an intermediary.

 

#2 Sales to dealers.  This includes professional buyers, the spinning sign people on the street corner, jewelers, pawnshops, etc.

 

#3 Consignment through dealers.  This can range from websites like idonowidont.com jewelsbyericagrace.com to jewelry or antique stores to high end auction houses. 

 

There’s no one answer that fits all and navigating this is supposed to be part of the advice you’re getting from your appraiser.  Did you ask?  Did they advise you?  What did they say?  The top money usually comes from either direct retail or consignment and the fastest sales and the least risk usually come from sales to dealers but even that rule can vary quite a bit depending on the details of your situation.  Most people are balancing risk, effort, You’ve apparently chosen a path (direct retail using an appraisal report and a photograph as an advertisement) and that’s your option but given your questions and you choices I sort of wonder if either you got solid advice on your available options. 


Edited by denverappraiser, 18 September 2013 - 11:07 AM.

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#10 denverappraiser

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Posted 18 September 2013 - 11:15 AM

A GIA graded 0.97/H/SI2 with decent cutting goes for about $4000 retail from a price competitive sort of dealer.  Within a few points of the size there are more than a dozen of them advertised in the database here. 

 

A GIA graded 0.97/I/I-1, a single notch down in color and clarity, will bring about 2/3 of that. 

It goes down steeply from there.

 

GIA grading costs about $100 plus shipping (and 8 weeks).

 

Buyers from private parties will expect a discount.  How much of a discount is negotiable.  Risk, meaning the unknown of what the grade really is, means a further discount.


Edited by denverappraiser, 18 September 2013 - 08:56 PM.

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#11 davidelevi

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Posted 18 September 2013 - 01:09 PM

Don't worry about sinking this ad - you are better off re-starting from a different footing anyway, and asking Hermann (the administrator) to delete the whole thread, but in the meantime get your sales strategy sorted by using the discussion here...


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