Jump to content

Help with loose diamond trade


alcar
 Share

Recommended Posts

Hi, I have a stone given to me from a family member, it was appraised by a reputable jeweler here by my mother over a year ago, when he had no idea I'd want to trade for a different shape. He wrote down a year ago: 2.73 carat, SI2, "I" color, appraise between $17-20K. It's a traditional cut and my girlfriend has said she wants princess. So I went to him about a possible trade and he came back with the following: trade it for a 2 carat princess, VS1, "I" color. This trade he said would result in me coming out of pocket for $6K, saying we could trade it "retail for retail" or "wholesale for wholesale". Just perusing bluenile and other sites, I found the price ranges for the 2.73 ring I have as being anywhere b/w $12-18K retail, and the princess with the same characterisitics b/w $11-17K. Does the $6K out of pocket seem a little high given what he has told me? And what questions should I ask him, etc to make sure I get the best deal without offending him. Thanks

Link to comment
Share on other sites

It sounds to me like you’ve already answered your own question. Obviously, the dealer is in this to make a profit and there’s nothing wrong with that but if he’s claiming this to be a straight across swap of retail for retail or wholesale for wholesale, this is not what’s being offered. I recommend using an appraiser who isn’t part of the transaction. The conflict of interest here is considerable and tiny differences can have a tremendous affect on the merits of the deal.

 

You might want to check your research. A correctly graded 2.73 SI-2/I round brilliant for $12k is a pretty tough call and a 2 carat VS-2/I princess for that same budget is pretty easy. I think this trade is costing you more than $6k.

 

Neil

Link to comment
Share on other sites

Hi, let me ask you a follow up please. I spoke to the jeweler I'm dealing with and explained that it seemed I was getting paid wholesale on the stone I have, and paying retail for a new one. He seemed confused and called his diamond guy who basically didn't give him an answer, just said "if he gives me this stone and I give him that one, the difference is this." However, he is in touch with another guy that said he would buy the stone without a trade for around the same price the guy was implying with his trade. Is this normal protocol? Meaning, is it usually a trade as in wholesale for wholesale where the guy would make money on selling the stone I trade at retail, or is it where they buy mine at wholesale and sell to me at retail, and essentially make the difference in whole/retail on both stones? It just doesn't seem right that someone would pay the same price for just the stone as another that's willing to trade.

Link to comment
Share on other sites

“It seemed I was getting paid wholesale on the stone I have, and paying retail for a new one.”

 

Correct. Actually, you’re getting less than what would customarilly be called 'wholesale' on the one you’re selling. Yes, it’s pretty common and it's not entirely unreasonable. You have two transactions, a sale and a purchase. They are making money on both ends. That’s ok in concept, but I’ll bet you can do better on both deals if you work at it, especially if you're doing both deals with the same people and at the same time. Assuming the grading on the 2.73 is correct and the cutting is at least decent, this is a pretty easy stone for them to sell and make some more profit on the next deal as well. If you’re serious about selling, get a GIA report on the 2.73. It’ll cost you a couple of hundred dollars but you’ll get your money back several times over in the ease of selling for a stone this large. You'll have to get someone to take it out of the mounting and instructions on how to submit it for an exam are at www.gia.edu

 

 

Neil

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

×
  • Create New...