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randyg45

Diamond Appreciation

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Hi. New here, hope this is the right forum....

 

My mom just called, said she wants to sell a diamond ring. She has an appraisal from... wait for it... 30 years ago. She wants me to sell it on eBay and is resistant to getting a new appraisal. (As you know, we sometimes become more eccentric with age rolleyes.gif ) 1.3 carats, round, VS2, appraised at 8k, which I am assuming was full bore retail. I do not (yet) know who made the appraisal....

 

Anyway, can someone tell me in the most general way how much diamonds have appreciated since 1980?? Any information would be greatly appreciated. TIA

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It's not a matter of appreciation. Depending on grading accuracy and paperwork included, along with her (or your) skills at selling things on ebay, a reported 1.30/round/VS2 of unknown color and cut will go for somewhere between $1500 - $6000. THAT'S why it's worth her trouble and money to get a more current appraisal and possibly why it's worth getting better documentation in terms of a GIA lab grading as well. A sensible buyer will require the lab, and a sensible seller will require the appraisal.

 

Even if it's reasonably correct, the retail replacement value conclusion from 1980 is irrelevant. Frankly, so is the author of a report that old.

 

I'm pretty eccentric. Worse things could happen, but why is she reisistant to professional assistance?

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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Really the only best way to get an accurate idea of what the ring is worth is to have it re-appraised. No way around it. Find an independent appraiser in your area. Then, if you want, you can potentially roll the cost of the appraisal into the asking price for the ring. Just remember, though, selling a used piece of jewelery is never going to fetch the same price that a store can command for essentially the identical thing, brand new.

 

Good luck :)


Diamonds Graduate, Pearls Graduate, AJP GIA

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Would it surprise you if I told you that the diamond has probably depreciated?

 

The late '70s/early '80s were characterised by a speculative bubble in diamonds; in addition, the retail margins have decreased considerably since then, thanks to greater competition and the appearance of internet-based retailing.

 

For starters, assuming the appraisal is roughly correct as to colour and clarity, you can use the Diamond Finder on this site to get competitive retail prices for similar diamonds - bear in mind that:

 

1. These are dealer-to-consumer prices. Consumer-to-consumer will be 30 to 50% lower, or possibly less, depending on the extent of documentation you have and the desirability of the stone (what colour is it, by the way?)

 

2. With diamonds, apparently small details can have very large effects on price. In particular cut has a significant impact on the beauty of the diamond, and correspondingly on its price. At the moment, you have little to no information on that, and cutting skills/tolerances have improved enormously in 30 years. Don't set your expectations too high.

 

If you can post a scan of the appraisal (erasing your name and address), we may be able to point you at closer comparables than simply based on the information you have given so far. In particular, other than the colour, it would be good to know the proportions and angles of the cut, whether it has fluorescence (and if so what colour and strength) and what the finish (polish and simmetry) is like.


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

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Is this diamond certified? if so, would you post it?

Hi. New here, hope this is the right forum....

 

My mom just called, said she wants to sell a diamond ring. She has an appraisal from... wait for it... 30 years ago. She wants me to sell it on eBay and is resistant to getting a new appraisal. (As you know, we sometimes become more eccentric with age rolleyes.gif ) 1.3 carats, round, VS2, appraised at 8k, which I am assuming was full bore retail. I do not (yet) know who made the appraisal....

 

Anyway, can someone tell me in the most general way how much diamonds have appreciated since 1980?? Any information would be greatly appreciated. TIA

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I think you mean "certifiable", Davide ;)

 

I don't think the diamond has papers, as the original poster wasn't even sure of the Color.


Diamonds Graduate, Pearls Graduate, AJP GIA

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Two people divided by a common language...

 

BTW, interesting tidbit: first attested use of certified, 1611. First attested use of certifiable, 1846.

 

To the OP: sorry for the threadjack.


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

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Although they've been offering the service since the 50's, 'certificates' have really only been a significant part of the jewelry industry since the mid 80's and they've only been a dominating factor in diamonds since the 90's. As you point out, GIA certifies nothing, not diamonds, not gemologists, not even their own employees. That said, the documents commonly known as 'certs'(GIA calls them diamond quality reports) haven't been around from time immemorial as many people assume. In 1980 it would have been decidedly unusual to have one. As they say, that was then and this is now. GIA makes close to $90,000,000 a year from this business. That's some serious non-profits!! That's roughly 10 times what they take in from tuition as a college. (according to the IRS and their public form 990 that they have to submit in order to keep thier 'non profit' status. 2009 is the most recently available filing)


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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For those who want to wade through it and who have the patience for IRS type paperwork, it's actually a pretty interesting document.

 

http://www.guidestar.org/FinDocuments//2009/953/797/2009-953797687-0697ff45-9.pdf


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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The point is, for the most part, that diamonds do appreciate as history has proven, although most people do not buy diamonds as an investment.

If you buy a diamond for $5000 that the dealer tells you is 'worth' $10,000, you hold it for 5 years and then sell it for $2,500, has it appreciated? What if the dealer tells you that similar things are now 'worth' $15,000? Some would call that a 50% gain, and in some definitions of value so would I, but for most of us and under most circumstances that's a 50% LOSS.

 

This concept is important with any investment but it seems especially true for diamonds. Perhaps it's just because people are expecting something different. The big variables in the above scenario are:

 

How well did you buy in the first place?

What did they mean by 'value' when they said $10k?

What did they mean by value when they said $15k?

What are the holding and transactions costs?

How well did you sell at the end?

 

NONE of these things are gemological properties but they are absolutely what drives the the 'investment' question.

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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