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Desperately Seeking Help For Pricing On A Clarity Enhanced Diamond Engagement Ring!!


XstinHz
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Hello! I appreciate all and any advice on this topic.

 

My husband bought an engagement ring for his ex-fiancé some years back and paid $7000+ for it. He bought it in the diamond district in NYC, and to put it nicely, was not educated on the type of diamond he was purchasing. The ring is beautiful and he (and I) would have loved to use it.... if his ex-fiancé had not once worn it.

 

The specs are: 4 prong setting that includes 10 small diamonds on the 14Kt white gold band with clarity enhanced round brilliant center stone weighing 1.32 carats. Clarity- SI - 1; Color: F; Symmetry: Good to Very Good; Polish: Very Good.

 

We also have an EGA appraisal of $10,200 for the diamond and a diamond certificate issued by E.D.G.L.

 

Any ideas on the ACTUAL value of this ring? We brought it to a dealer the other day (minus the paperwork we forgot at home) and he was not at all interested in it and had no idea what to compare it to in order to establish the value of it. This is quite discouraging. :(

 

Thank you for your help!!!

Edited by XstinHz
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If by 'actual value' you mean what can you expect on resale, don't expect much. People don't like to buy 'used' engagement rings for the same reason you don't and CE diamonds are notoriously difficult to sell under even the best of circumstances. If you like the stone but not the ring, have you considered having a jeweler reset the center stone into a brand new ring that's yours and yours alone? I'm not impressed with the deal he got in the first place and I would be very cautious here but perhaps the dealer who sold it to him will take a trade-in for something else.

 

That 'appraisal' is useless. The best I can say for it is to please recycle.

Edited by denverappraiser
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I understand the appraisal is useless and overinflated, and that clarity enhanced diamonds are not easy to re-sell. That is precisely why I am asking for help. Also, I have to respectfully disagree about going back to a company that has previously been deceptive and giving them additional business. I don't see how anyone could stomach rewarding a company like that. I also have no interest in reusing the stone, I don't wear much jewelry besides my wedding ring.

 

By 'actual value' I mean an actual dollar amount. You replied with "not much", and that is not much help. :(

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I can't provide a value on a stone I haven't seen but the dealers around here would probably be offering scrap metal on the mounting, nothing on the small diamonds and craftsmanship, and something like $800-$2500 for the center stone depending on what the grade really is. Some wouldn't buy it at all. That's a big range and narrowing it down involves talking to a real appraiser who's working for YOU to tell you what you've really got and discussing how that will fit into the marketplace you're considering.

 

Pretty much all values are stated in dollars and 'value' is a tricky problem in this business (any business actually). Any statement of value must contain an element of what it's worth to whom, when and under what circumstances. That's why the squishy answer and why I still haven't really answered the question. It sounds like you want to know what YOU can get for it on resale and although there's a gemological component here, there's also a huge component about how good you are at selling things, who you plan to sell to and how. If you can retail it in your own store you'll do a lot better than if you sell it to a dealer for example. Some people are a lot better at this than others and they DO get better prices.

 

I was cringing as I suggested you talk to the seller because I agree, we already know they're a problem. The advantage they have is that they are a dealer in that very ring and the advantage you have is they may have a contractual relationship that you can use to your benefit. The issue is the terms and conditions of the original sale. $1000 is good money but compared to the $7000 paid, that's 'not much'.

 

Depending on where you are, dealers who buy things aren't usually very hard to find and bids are usually free. It might be helpful to go talk to a few.

Edited by denverappraiser
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The "slight" problem here is that out of 4 Cs we only know about one: carat weight. Clarity is undetermined (it would be priced based on its unenhanced clarity, and all we know is that it's going to be at least I1, possibly I2), cut is not graded and colour is not reliably graded (but extremely likely to be below G).

 

I'm surprised Neil has even provided you a value range - I'm usually the one that sticks his neck out, having far less of a professional reputation to maintain, and I would have guessed somewhere around the same range... sorry, but it does need to be seen.

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Neil - Thank you so much for your honesty. The information you provided gives us a starting point to help understand where we need to go from here (and that may be the Salvation Army, lol). It's never fun to learn a lesson the hard way, but you live and learn, right? I think we will cut our losses and definitely stop paying insurance on it.

 

Davidelevi- I spoke with my husband last night asking if he ever had anyone, besides the shop, do an appraisal and he hasn't. So we will definitely be doing that soon.

 

Thanks for your help, I sincerely appreciate it.

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Where are you? I'll try to find a referral to a competent appraiser.

 

The Salvation Army is certainly a worthy group but even THAT needs to start with an appraisal, at least if you intend to claim a deduction on your income taxes. Depending on your tax bracket it's certainly possible that you will come out ahead in the long run with a charitable contribution and you get to support a cause you believe in but it's not as simple a transaction as it seems like it should be unless you aren't concerned with the tax affect (for example if you aren't an American or you have no taxable income).

 

As an interesting side, I had a meeting this last week on this topic with a new charitable organization that's specializing in this very issue. They are planning to collect donations of jewelry, particularly engagement rings, sell them through a web store, and spend the proceeds for charitable purposes. The donor gets a tax deduction, the buyer gets some good kharma and the charities get to advance their missions.

 

http://www.ringaroundthechildren.org/

 

They don't seem to have their sales portal up yet and I have no idea if they have their system in place to receive donations yet but it's an interesting idea.

Edited by denverappraiser
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A note on appraisals. Most appraisals are done for insurance purposes and the definiton of value is what you would reasonably expect it to cost to replace with another one like it at retail, new, locally. I dont' think the appraisal you have correctly answers this question but it's a very different question than the one you're asking here. I bring it up (again) because charitable contribution appraisals use a 3rd definition called 'fair market value'. This is the price you would reasonably expect for the end consumer to buy the item in it's present condition in the usual and customary marketplace. That is to say, how much the charity is going to be expected to sell it for. Make sure your appraiser understands that you are seeking a charitable contribution appraisal. It is NOT the usual question and if you don't tell them they will assume differently.

Edited by denverappraiser
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I think we are going to try to find a loving home for it. We spoke to some of the different jewelers in our area and they seem to agree with your range as well. I know there isn't a huge market, but it is a nice ring and I am sure someone that is on a tigher budget might like it. Heck, my husband's ex liked it at $7,000. ;) We will price it on the lower end of the range ($1000-$1500) and make sure to make it known that it is clarity enhanced and tell them exactly what that means if need be.

 

Thank you again for all of your help!

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CE is an important characteristic and it's often misrepresented, which is why it gets discussed in such a disparaging way, but it's NOT a defect. It really does make certain I1's and I2's look a lot better and if both the buyer and seller are on the same page about what it is and what it's not, I have no problem with them.

 

Best of luck in your sale.

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