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Cin Su

Reselling market for high jewelry

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Have my eyes on these expensive fancy color diamond jewelry by a well known designer, it is close to 900k USD, i know, expensive, and it costs like one third of the price or half if i were to buy without designer name

Has anybody bought and sold anything like that in similar price range? i.e. wore it for a few year.... Did you lose money or gain?

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Some thoughts here:

1. In the selling price there are elements that are simply "non recoverable": the retailer profit, the retailer overhead charges and any tax element.

2. The work of some designers has appreciated quite consistently over the last 15-20 years, but it is a very restricted number of names. Even the "grand names" like Cartier or Van Cleef have gone so commercial in recent years that you definitely cannot resell things for a profit or even on an even keel in the short term.

3. The piece itself. Is the selling point exceptional design? Or rare stones? Or something else?

In general my view would be that in the short term (less than 15-20 years) you would be losing money; in the longer term you may continue to do so, or you may make money depending on what the market does. If you bought gold jewellery 15 years ago, you'd be nicely in the money just reselling it as scrap.


Davide - Specialised Consumer Information and Assistance,
Diamonds by Lauren (http://www.diamondsbylauren.com)
davide@diamondsbylauren.com

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I work in this space fairly often so I think it’s fair to say that yes, I have experience in it even though I don’t have the budget.

For starters, almost always there’s an issue of who says it’s worth $900k?  This gets fuzzed OFTEN.  Did it sell at retail new for this? To you? Did some appraiser say it and then sold it on a discount website for ‘pennies on the dollar’? The difference is obviously important and there are others in between. 

Let's assume, just for discussion's sake, that you bought it new for $900k and now want to resellet.  Yes, you will almost certainly lose money on this deal.  The normal way such things change hands is either in high-end specialty stores or at auction.  Presumably, you are neither of these so you’re going to pay a commission.  Expect 15-40% of the sales price after you add up all of the various premiums and fees. Then there’s the problem of new vs. used.  Diamonds don’t change so much but the designer premium most definitely does.  A used Cartier piece, for example, normally goes for quite a bit less than a similar new one at the store (and that's before we get into the commission question).

This is a VERY specialized marketplace.  Million-dollar pieces trade a few dozen times per year, worldwide, and the customers, quite reasonably are extremely picky.  They have plenty of choices.  It can sometimes be very difficult to find a buyer and it can take years, which is why people are willing to pay those commissions. If you’re selling to a dealer where they are now taking the risks, expect your realized price to drop drastically. 

Not to sound self-serving, but if your $900k number is anything like realistic, I recommend professional assistance.  There are decisions here with 6-digit ramifications and anonymous opinions online is not a good way to make them.

Edited by denverappraiser

Neil Beaty

GG(GIA) ICGA(AGS) NAJA

 

There's never a crowd when you go that extra mile.

Professional Appraisals in Denver

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Let’s assume another scenario.  You bought it used and cheap from some outlet like a pawn shop or auction and are hoping to make a killing. 

There's nothing fundamentally wrong with this, but usually, it doesn’t work out for the above reasons and more. Fakes are plentiful in that market but, assuming it’s real, there’s almost certainly issues with the piece.  That’s why it’s in a pawn shop in the first place. If they could have sold it at Christie's for the big money, normally that’s what they would have done and even if someone pawned it, that’s what the pawnshop owner would have done.  It never would have made it to the case with the $1,000 price tag in the first place.

That leaves venues like garage and estate sales where the seller doesn’t know what they have.  The owner died and the heirs are dumb.  It's in the $1/each bin.  It happens, but not nearly as much as people think.  As with the above, seek out professional assistance if you think this is the case. Authentication is the first hurdle and it can be a doozy.

 

Edited by denverappraiser

Neil Beaty

GG(GIA) ICGA(AGS) NAJA

 

There's never a crowd when you go that extra mile.

Professional Appraisals in Denver

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On 11/12/2019 at 5:52 AM, davidelevi said:

yes 1 part understood, tax can be easily avoided though, the brand premium is very high, i thought it also sell at the same premium being sold, but not to the same extent.... definitely not short term, will loose a lot of money.. can be made to exceptional design and rarestone, i think designer pieces are better bought as vintage, the high jewelries are way too expensive for what it is

i probably will just get a good stone for now, dont want to wait that long 

 

On 11/12/2019 at 5:52 AM, davidelevi said:

 

Some thoughts here:

1. In the selling price there are elements that are simply "non recoverable": the retailer profit, the retailer overhead charges and any tax element.

2. The work of some designers has appreciated quite consistently over the last 15-20 years, but it is a very restricted number of names. Even the "grand names" like Cartier or Van Cleef have gone so commercial in recent years that you definitely cannot resell things for a profit or even on an even keel in the short term.

3. The piece itself. Is the selling point exceptional design? Or rare stones? Or something else?

In general my view would be that in the short term (less than 15-20 years) you would be losing money; in the longer term you may continue to do so, or you may make money depending on what the market does. If you bought gold jewellery 15 years ago, you'd be nicely in the money just reselling it as scrap.

 

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On 11/12/2019 at 11:29 AM, denverappraiser said:

how can i find professional assistance? 

 

 

On 11/12/2019 at 11:29 AM, denverappraiser said:

I work in this space fairly often so I think it’s fair to say that yes, I have experience in it even though I don’t have the budget.

For starters, almost always there’s an issue of who says it’s worth $900k?  This gets fuzzed OFTEN.  Did it sell at retail new for this? To you? Did some appraiser say it and then sold it on a discount website for ‘pennies on the dollar’? The difference is obviously important and there are others in between. 

Let's assume, just for discussion's sake, that you bought it new for $900k and now want to resellet.  Yes, you will almost certainly lose money on this deal.  The normal way such things change hands is either in high-end specialty stores or at auction.  Presumably, you are neither of these so you’re going to pay a commission.  Expect 15-40% of the sales price after you add up all of the various premiums and fees. Then there’s the problem of new vs. used.  Diamonds don’t change so much but the designer premium most definitely does.  A used Cartier piece, for example, normally goes for quite a bit less than a similar new one at the store (and that's before we get into the commission question).

This is a VERY specialized marketplace.  Million-dollar pieces trade a few dozen times per year, worldwide, and the customers, quite reasonably are extremely picky.  They have plenty of choices.  It can sometimes be very difficult to find a buyer and it can take years, which is why people are willing to pay those commissions. If you’re selling to a dealer where they are now taking the risks, expect your realized price to drop drastically. 

Not to sound self-serving, but if your $900k number is anything like realistic, I recommend professional assistance.  There are decisions here with 6-digit ramifications and anonymous opinions online is not a good way to make them.

 

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1
23 hours ago, Cin Su said:

how can i find professional assistance? 

Look for a professional appraisal.

Where are you?  Where is the merchandise?

Who did the authentication?  Assuming that you were the client for the authentication, start by talking to them. If not, be very nervous about this topic.  You're talking about betting half a million dollars on this topic alone. 

Bear in mind that you're not seeing an insurance document and 'appraisals' supplied by the seller don't count for much.  Hire your own. 

You describe your situation as 'having your eyes on'.  Can you elaborate?  Have you actually seen the item(s) or is this some online sales platform?  Is $900k the selling price or something else?


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

 

There's never a crowd when you go that extra mile.

Professional Appraisals in Denver

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I would NOT start looking for an appraiser at a jewelry store.  

Some good resources (assuming you're in the US)

www.najaappraisers.com National Association of Jewelry Appraisers

www.ags.org American Gem Society

www.appraisers.org American Society of Appraisers

 


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

 

There's never a crowd when you go that extra mile.

Professional Appraisals in Denver

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