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Found A Nice Rock, Curious About Re-sale Value.


CuriousBuyer
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I have found a pretty nice 1ct stone that is a Very Good Cut, SI1 clarity and H color.

 

It was a "good" deal, so I bought it (but am still within the return policy), getting it appraised soon.

 

Here is my question. Were I to find a better or more interesting stone (or if finances get tangled, etc) in the coming weeks/months how would you suggest I go about selling it with a minimal loss on investment?

 

Suggestions?

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You will be fortunate to get 30 cents on the dollar. This is the typical buy back Diamond Dealers and traders offer on a consumer diamond ring.

 

You might do marginally better at an Auction House like Sothebys or Christies but their cut is high.

 

A new website that has recently sprung up might be the best option for you. It's called...

 

I do, Now I dont

 

Google it and see if this venue is an option.

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It depends to a large extent on who you are selling to, how good you are at the whole sales process and how ‘good’ your deal was in the first place.

 

Direct sale to consumers generally yields prices that can go as high or higher than what you see advertised here and can be as low as about 2/3 of those. The key to maximizing this is finding the right consumer. The dealers go through an enormous amount of trouble and expense to do this. It often involves advertising, travel, credit risk and networking and not everyone equally skilled at these things. If you travel in the right circles, have the right personality and have the right taste there can be a profit to be made here. On the other hand, sometimes you beat your head against the wall for months without making a sale.

 

Consignment through a dealer is a way of making a direct sale to a retail consumer but with professional assistance. For decent goods, the prices go up but the dealer commissions bring the net to you about the same or a bit lower. The difference will be in your selection of partners and how good they are at doing these things. Some stores are better at selling than others and not every store is good at selling every type of merchandise. It’s a bit of a chore to shop for one there are lots of dealers who are anxious to do this because you’re absorbing their inventory costs leaving them with very little investment or risk and a decent profit if they make a sale.

 

Direct sale to dealers is the fastest and easiest approach but it also yields the least money. Figure something like ½ to 2/3 of the prices here.

 

There’s two important things to notice about the purchase price as well. If you look up a particular set of parameters here you’ll find a range of pricing on stones that are superficially similar. Naturally, people doing the above math would like to compare with the most expensive stone they can find on the list. This may or may not be appropriate and it will depend on what you bought but, in almost all cases, it’s not. The other thing is that the dealers here are pretty competitive. Most people pay higher prices than these and approximately everybody thinks they got a ‘good’ deal. That's why I'm using the advertisements here as a benchmark rather than the your purchase price. There’s certainly nothing wrong with paying a premium for the value added by a particular dealer but it’s unusual to see it back on resale.

 

Most folks see all of this both surprising and pretty bad news and the dealers, of course, know this. Many will offer a trade-in type program on certain of the stones they sell as an incentive to encourage you to shop with them. This becomes part of the premium you pay for a particular store and one of the reasons why you might choose one over another despite their lack of rock bottom prices.

 

Neil

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