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Selling Diamond But Dealers Set Up Low Price


Aujesuis
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We have IGI certified diamond, (GIA doesn't appraise stones for private citizens where we live, and GIA staff said that IGI lab is most reliable amongst all others)

 

 

So, after it was done - we "consulted" Rapaport tables & the price per carat of the diamond of that size, color & clarity is 17.794 dollars per carat.

 

 

What would be the best price to ask for it?

Or - how much lower than that we should ask in order to:

a) do sell

b ) avoid to be "robbed" at the same time

?

 

Thanks much for any suggestions posted!!

Edited by Aujesuis
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GIA doesn't appraise stones full stop. And I'm not sure that an appraisal from IGI (or anyone else) is very useful, unless you have a clear conversation with them about what you want the diamond to be appraised for - if you don't tell them anything, people will assume that it's for insurance replacement purposes.

 

IMHO, a GIA grading report would have been considerably more useful than an IGI appraisal in establishing what you have and in selling it, whether to a trader or a private buyer.

 

The Rapaport value, on the other hand, is totally useless. It's an average of trade asking prices for similarly graded diamonds - any specific stone (and indeed even the same stone in two different deals, say cash payment or on memo) can be sold for considerably above or below the average depending on its individual characteristics. It's a bit like getting a "trade price guide" for a second hand car based on brand, model and year. Different mileage, condition, options and colour will make a significant difference to how much you can get for it (or you expect to pay).

 

Without knowing a lot more details than a rap price, it's impossible to even guess at what you could get for it.

 

You can use the Diamond Finder to get competitive online retail prices for comparable diamonds (but make sure they are comparable: an IGI grade is NOT comparable to a GIA grade; a 0.95 diamond is NOT comparable to a 1.00). Depending on what channel you use (sale to a dealer, consignment, eBay or direct sale), how desirable your stone is and how good you are at marketing and selling, you can expect to see anywhere between 30 and 70% of the retail price.

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Maybe I expressed wrongly: we made "diamond report" with IGI, which has lab in our country, and can "investigate" the stone locally, without sending it to USA.

IGI does not make appraisals of the price, they told us that in the Lab and it says so in the report, too.

 

From what we learned, HRD & IGI & GIA grades are comparable - by the price they achieve - only GIA has "more stones reported" than IGI.

(On the contrary - EGL & AGL get nearly half price for the same grade compared to grades from HRD, IGI & GIA).

 

 

Moreover, we learned that IGI is even more strict with their "cut grade" than GIA.

 

Nevertheless - we're close to one of the biggest diamond exchange in the world, and what worries us is our negotiating skills with the dealers there ;-)

 

Anyways 30% of Rapaport price is certainly out of the question, because no matter the cut & stuff - big stone will always stay big and clear one will stay clear and no additional "temporary" treatment is on it to fill the cracks & hide the impurities, otherwise IGI wouldn't even issue any report. (we were warned about that part too when we handed them the stone).

 

60%+ of the Rap. price would be acceptable, thank you very much for the info!!!

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IGI and GIA grades are definitely not comparable - you will notice this when it comes to sell. And IGI is equally definitely not "stricter" on their cut grading than GIA, though they will issue a "Hearts and Arrows" cut grade whereas GIA will not.

 

The range I mentioned above on prices has nothing to do with clarity enhancement or the cut quality - Rap prices are for untreated stones anyway, and they are IRRELEVANT to any specific deal. A stone with superb cut will trade significantly above Rap, and one with issues such as fluorescence, poor finish or proportions will trade at a significant discount. I'm talking +/-50%, not a small amount.

 

Cut is certainly going to affect the price, and in a very significant way, but on the fair retail price for the stone, selling as a consumer you will still only receive somewhere between 30 and 70%. The range is dictated by to whom you sell and at what conditions: you will NOT get 60% of retail price if you want cash in hand at a dealer. Nobody forces you to sell at any price, but 30% of retail is the type of offer you will get for that type of sale.

 

In any case, good luck.

Edited by davidelevi
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yes, I noticed that, tyvm :-)

anyhow, Rap is good to help us make some orientation...

along with prices on the web (which are lower then in jewelry stores)...

 

We have to set up "our price", for 30% is not good starting point...

 

Much better if we start from somewhere higher than we expect to get...

As you said - it's all about negotiations & marketing ;)

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We’re missing quite a bit of information. I suspect deliberately. The issue of sales has to do both with what you have and the market conditions. Rather few buyers are interested in what IGI thinks it’s ‘worth’, especially dealers, and especially as and out-of-context number so we get down to what they said it is. You haven’t provided ANY of that. That’s fine, we don’t need to know, but it’s an important piece of any sale and a report from IGI may or may not impress your potential buyers. That's for them to decide.

 

Grading is not the only piece and it may not even the biggest piec. Who are you going to sell to and in what market? Again, we haven’t got a clue. What Rapaport SAYS they are describing is New York dealer asking prices for well cut GIA graded stones. Even that’s questionable but asking isn’t the same as getting, you aren’t in New York, and you aren’t a dealer.

 

With a lot of customers and a lot of goods, 50% of Rap is impossible and 30% is hard. In the hands of the right person and with the right item, full Rap is possible. You're asking where you belong on this scale. I haven't a clue.

 

This is like asking us what you’ll be able to get for your car compared to the blue book price. It depends on condition, location, your marketing skills, fashion and a litany of other things. Hearing that somebody once asked $20,000 in another country for one that was sort of like it tells you very little.

 

By the way, this sort of advice is SUPPOSED to be what your appraiser provides. They’ve seen the stone, they’re aware of the local market conditions, and they can consult with you about your marketing plans. It sounds like you didn’t tell THEM the relevant facts either. They should have asked but, as Davide points out, they can and probably did make some assumptions about ‘insurance replacement value’. That’s pretty typical but it sounds like it doesn’t apply to your situation. Asking Rap, or Rap-30%, or Rap-60% is certainly an option for setting prices and who knows, you might even get it. It's not like diamonds are perishable and it doesn't hurt to try.

Edited by denverappraiser
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30% offer I got from the dealer who took the stone out of my ring so I can take it to the lab.

Meaning he did not have insurances the stone has not been treated to fill cracks & hide impurities etc.

 

Since IGI does not issue reports for stones that are "temporarily treated", and they did issue me one - now the situation is a bit different.

 

I haven't come back to the 1st dealer yet, but the dealers I met afterwards asked me about "my price", and that's when I get in trouble...

Because I simply don't know how to set that up...

So = thanks to all that are answering me, your advice is really helpful...

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OK, you've got a baseline. I presume the 30% is a firm offer. Go back to him with the IGI and see if that convinces him to bid higher. Then show it around to a few other stores and see if they'll offer more. If they insist on you giving a first price that they then negotiate from, 60% of Rap is as good as any as a place to start. At least around here it wouldn't matter. They'll bid whatever they want to bid and they just ask this question to see if your expectations are reasonable. A lot of people think their stuff will bring WAY more than it does (like five or ten times).

Edited by denverappraiser
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Largely for the benefit of others that may read this thread wondering what to do with a diamond they want to sell, and broadening the conversation to other gemstones:

 

Detecting clarity enhancement (Yehuda/glass filling) is not hard, particularly on a loose diamond. The inclusion will be visible from the side and/or the back. From that point of view, a grading report that is stating that the stone is not enhanced is nice for a consumer, but to a pro it is not adding much.

 

With a ruby or sapphire, flux healing is much harder to detect, and certain types of polymer filling for emerald and jade are very hard to detect without a whole set of lab equipment. From that point of view, a report from a good lab will help. With a diamond, colour origin is difficult to determine sometimes, but clarity enhancement isn't.

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