Question on trading two diamonds in for one larger

[Kay 0]

Hi- I have a 1 carot great quality diamond I've owned 23 years and received another recently from a family member. Does anyone have advice on switching them both in for a larger one? Curious if money is typically lost on the value.  I have the certificates.

 

Thank you for your thoughts !

[davidelevi 598]

3 hours ago, Kay said:

Curious if money is typically lost on the value.

It depends on a lot of factors. Key points to consider:

1. What do you mean by 'value'. Do you have appraised values for the stones? If so, based on what market? 'Retail replacement values' are almost always hopeless overestimates of what retail prices actually are, never mind a resale situation, and a 20+ year old appraisal is irrelevant today. Note that an appraisal is not the same as a lab report on the diamonds.

2. What you actually have. 'Great quality' is not a description that anyone can use to even provide a clue - and in diamonds like in most other things there are fashions as well as absolutes.

3. What you intend to buy. Same observation above applies - 'a larger one' is too vague.

4. The circumstances of the deal - are you in a hurry to get the deal done, is the vendor in a hurry to get cash in? Are the goods you want in stock or do they have to be procured? Would you be happy to pay more upfront for the new stone and receive a larger amount when your stones are resold?

4 hours ago, Kay said:

Does anyone have advice on switching them both in for a larger one?

Start by clarifying (to yourself at least) the details of points 1, 2 and 3 above.

If the money involved is not trivial, consider hiring an independent appraiser to provide you an unbiased opinion of what you have, what is its value in a transaction like the one you are considering and whether - for example - having new lab reports issued would be beneficial (if, for example, one of your diamonds is graded FL or IF clarity, but it has been worn, or if your lab reports have been issued by a not-particularly-reliable lab). This will cost you (in the US or in Western Europe) a couple of hundred dollars or equivalent, but it may save you many times that, not to mention frustration and disappointment.

Only once these things are clear should you start your search for another party to deal with.

[denverappraiser 491]

To add to what Davide said above, fundamentally it's three transactions. Two sales and one buy.  There's not much of a gain in doing them all at the same place beyond that it might be less paperwork and you only have to search for one merchant. You won't be saving by bundling this. There are plenty of people who will be happy to be involved in any step of this or all of them but there are going to be three negotiations as well. Whether or not you'll get your price and how much you will need to pay for the new one will depend largely on the answers to the above.  

Edited January 5 by denverappraiser