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Resale Value Of 8ct Diamond Pendant


osiris2600
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Hello everyone. I have the option to buy a 8ct diamond pendant. I will obviously sell it because there is no way I could afford to keep and it and I have NO use for an 8ct diamond :P . My question is, what do you think I could sell it for and what would be the best venue to sell such an item.

 

I know it is hard to tell without knowing the grading and color but if I could get a general idea of the resale value then thats beter then nothing.

Edited by osiris2600
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It'll range from zero to hundreds of thousands of dollars depending on details that you haven't provided and that you've stated but that you may not be confident about (that it's a diamond at all and that it weighs 8 cts.) Start by getting it appraised, in person, by an appraiser hired by you, not by the seller.

 

If that's not one of your choices, pass on the deal.

 

Neil

 

 

ETA: Your picture got edited out and it makes it difficult to follow this thread without seeing what we're talking about. In the interest of clarity, here it is.

post-109418-1211028142_thumb.jpg

Edited by denverappraiser
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Come on Neil- be specific.

All right, if you won't I will!

 

It's worth exactly anywhere between $10, and $75,000 :P

 

Seriously- it's completely impossible to even begin to guess at a value.

One thing that's not too tough to guess about is if this sounds like a good deal.

 

No, it does not.

unless you are involved in the jewelry business, you will never be able to re-coup anywhere near a retail price when you sell.

It's likely that the seller would have already tried selling to a store, or pawn ship,and gotten an idea what they might have offered.

if you pay what that type of operation offers, you'll be way on the short end of the stick- again- they have the abilioty to sell at retail prices, you do not.......

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It'll range from zero to hundreds of thousands of dollars depending on details that you haven't provided and that you've stated but that you may not be confident about (that it's a diamond at all and that it weighs 8 cts.) Start by getting it appraised, in person, by an appraiser hired by you, not by the seller.

 

If that's not one of your choices, pass on the deal.

 

Neil

 

It is going up for auction.. I talked to the auctioneer and he told me that the jewelry is of top quality. The ownere has other jewelry that she paid hundreds of thousands of dollars for. There was another item that she bought and paid 750k for. Ironically enough, the auctioneer did not know the details of the grading and color. I've seen the other items for sale and it's clear that this is not a person that a.) bought fake items b.) bought cheap quality items.

 

I'd understand that it is hard to give an assesment however I think it's safe to assume that it is actually a diamond :P .

Edited by osiris2600
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To quote the brave Sir Robin, “RUN AWAYâ€.

 

I do a decent amount of work for auction houses and one thing I can assure you of. If they are doing a good job for their client (meaning the seller), they know precisely what they have and what the best market to sell it into is. Mostly, they don’t discuss everything they know but it’s a serious mistake to assume that they aren’t doing their due diligence just because they play dumb with the buyers.

 

If they won’t provide you better information than that and won’t allow you and/or your expert to inspect it, assume it’s a fake and bid accordingly.

 

Neil

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To quote the brave Sir Robin, “RUN AWAYâ€.

 

I do a decent amount of work for auction houses and one thing I can assure you of. If they are doing a good job for their client (meaning the seller), they know precisely what they have and what the best market to sell it into is. Mostly, they don’t discuss everything they know but it’s a serious mistake to assume that they aren’t doing their due diligence just because they play dumb with the buyers.

 

If they won’t provide you better information than that and won’t allow you and/or your expert to inspect it, assume it’s a fake and bid accordingly.

 

Neil

 

Thanks for the advice and help. He did ask me if I was local and suggested I come take a look at it. However I am out of state and it is going up tomorrow so I will not have a chance to see it for myself. However I do have a family member in the area and I may tell him to go take a look at the items and perhaps some documentation. I don't know if the owner has passed away or what have you but their house is going up for auction as well.

 

Thanks again for your help and I apologize for my ignorance. I was just doing my usual surfing and saw these items and was wondering if it was worth pursuing.

Edited by osiris2600
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You're welcome!

 

Oh, wait, you apparently did not like my advice...sorry!

 

Lol. I was thanking both of you :P . Ok heres another question and it has a little more info. The watch at this link http://www.thewatchery.com/Piaget-Watch-10104.htm is going up for auction, same owner as the 8ct pendant.

 

If I were to purchase this watch how much do you think I could sell it for and do you (or anyone) recommend Ebay for such an item.

Edited by osiris2600
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Thanks O!!

Of course, the same advice applies.

 

Although it certainly IS possible to buy certain items on eBay, re-list them for more, and take a profit- it's not a common scenario.

When it comes to fine diamonds and jewelry it is NON EXISTANT- never happen......

 

No I was going to purchase the watch from the auction. The auction was not Ebay. The starting bid is far less then half the retail price of the watch. From your response you may have thought that I was going to buy the item on ebay then resell it. Thats not the case. I was going to purchase the item from an estate auction and possibly put it on ebay.

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We're still in the same ballpark.

If you do not have an ongoing jewelry concern, I would strongly advise against investing to try and turn items.

This is true if you buy on eBay, or at an auction house.....

 

Ok I get it, your advice is the same regarding turning a profit on jewelry. I guess I'm having a hard time understanding why it would be hart to turn a profit on an item that retails for around 50k (the watch) if I purchase it at around 20k (assuming that the item is 100% authentic/legit). I'm aware that selling jewelry is somewhat of a "niche" market. However doesn't the adage "buy for a dollar sell for two" still apply?

 

What am I missing?

Edited by osiris2600
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If the item has value, there are thousands of pawn shops and jewelry stores that would beat you to the punch.

These business thrive on doing exactly that. They know how much to offer.

The liklihood of someone not involved in the jewelry business being able to "swoop in" and buy a diamond , or expensive peice of jewelry, then re-sell for a profit are just about nil.

 

Remember, if Tiffany's is selling an item for $5000, you would have a very tough time getting even $2000 for the exact same item- even if the item was still in the blue box AND you had a receipt.

 

There are so many advantages a top notch seller can offer that you can not. That makes whatever they are selling worth exponentially more than if Joe Shmoe is selling it- not to equate you with Joe Schmoe, but these are the facts.......

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What am I missing?

 

The job of an estate liquidator is to assist an estate manager, usually an heir who doesn’t have much experience at this sort of thing, in reasonably quickly selling the things they don’t want. They collect a commission of anywhere from 15%-30% of the proceeds for this and the process takes anywhere from a few weeks to a year or so depending on the item(s) involved. It’s a valuable service and the good auction houses work hard and earn their pay.

 

There are a few key elements to the auction business that you seem to be missing:

 

1) The auction house is a consignment sales company that works for the seller, not the buyer.

 

2) They are commission salespeople. The higher the price, the higher their pay.

 

3) THEY choose which items go to which marketplace and when. This is not done randomly, it’s not done the same way for every item owned by a particular client or from a particular lot.

 

4) They are under no obligation to sell every item at the same event or even through the same venue. They can and do sell through other auction houses, retail stores, ebay, directly to dealers and any other approach that they think will bring them the best value for their clients (and consequently for themselves).

 

5) They set the starting bid, the reserve bid, the ‘presale estimate’ the ‘retail’ prices et.al. in order to maximize the return for the seller. The fact this is being presented at a regional live auction with NO relevant information is not an accident.

 

6) They usually are not under a great deal of time pressure to make a particular deal although the whole auction show is orchestrated to make it feel that way and to put YOU under time pressure.

 

7) They are under no obligation to tell you what they know and it is often in their best interest to conceal their hand. They employ some very savvy people who do this full time and they can and do hire experts to assist with specialty items (like expensive jewelry). I do it regularly. I get to inspect things at my leisure, in my lab and using my full armament of equipment. The buyers get to look at things with a loupe, in a hurry and under bad warehouse lighting. Darned right that gives the house an advantage.

 

Again, just in case you didn’t get it from the above. They are highly skilled and experienced people working on behalf of the seller and they control 100% of the information that you’ve seen thus far. Read the terms and conditions carefully and remember in whom you’ve put your trust. There are some top shelf people in the auction business but there are plenty of sharks as well and remember, YOU ARE NOT THE CLIENT.

 

Neil

Edited by denverappraiser
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So it went for $140,000 (plus a 10% buyers premium). Osiris, was that you?

 

Neil

 

Sorry for the late response Neil, but no that sure as hell wasn't me :P. I didn't even get a chance to see how much it went for becuase I was not home to watch the online auction. Did you see how much the other items went for?

 

p.s. Thanks for the advice that you gave.

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Sorry for the late response Neil, but no that sure as hell wasn't me :). I didn't even get a chance to see how much it went for becuase I was not home to watch the online auction. Did you see how much the other items went for?

 

p.s. Thanks for the advice that you gave.

 

I didn't follow the whole auction. I just looked at that one because you had expressed interest and we were discussing it.

 

Neil

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I guess I should have mentioned that the items were from Steve Harvey's ex wife lol. Which would verify there "authenticity" to some degree.

 

That authenticates nothing of the kind. For starters, an auction containing many items from a particular source in no way guarantees that ALL items are from that source. More importantly, just because Ms. Harvey can afford an expensive diamond if she wants in no way guarantees that ALL or even any of her jewelry is expensive.

 

So what do you think about the item going for 140k?

 

Somebody knew more than we did, which is no surprise. By the way, it may not have actually 'sold', it may have been an insider type arrangement with a reserve bid. This is quite common and this too is something that we aren't privy to. We also don't know if the 'buyer' actually paid their bill or just had a twitch in their arm. One thing is for sure, there is NO WAY either that bid or the bids by whoever was going against them that drove it up to that level were done based on the sparse information presented online. Was it a good deal? I have no idea. I still don't have anything like sufficient information. I will go out on a limb and say that based on the fact that at least two informed people were apparently willing to pay 6 figures for it, it probably really is a diamond.

 

Neil

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I'd say it was likely a pretty high quality piece.

Likely the buyer examined the stone and had knowledge which allowed them to feel comfortable bidding such an amount.

 

Often there is something of a shell game going on with these auctions. I notice that the seller is a living trust, which is a complicated bit of tax accounting that muddles ownership. I'm going to guess that Ms. Harvey is elderly and both the trust and this auction are part of her estate planning but, of course, there are lots of other scenerios that this might be part of. The cleanest way to distribute assets from a trust without running afoul of the revenuers is through public auction. If the plan is to have an insider (like one of her heirs) buy it at the auction, it pays off in the end to use less famous auction houses and lame-ass descriptions.

 

Neil

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I'd say it was likely a pretty high quality piece.

Likely the buyer examined the stone and had knowledge which allowed them to feel comfortable bidding such an amount.

 

Often there is something of a shell game going on with these auctions. I notice that the seller is a living trust, which is a complicated bit of tax accounting that muddles ownership. I'm going to guess that Ms. Harvey is elderly and both the trust and this auction are part of her estate planning but, of course, there are lots of other scenerios that this might be part of. The cleanest way to distribute assets from a trust without running afoul of the revenuers is through public auction. If the plan is to have an insider (like one of her heirs) buy it at the auction, it pays off in the end to use less famous auction houses and lame-ass descriptions.

 

Neil

 

 

Really good info. Thanks a lot.

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