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Is That A Good Purchase?


dimka78
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1.  Is the setting deliberately two-tone, or are they trying to confuse you with the amount of platinum you received?

2.  The report of authenticity seems to be by Gemological Science International.  Are you comfortable with that?

3.  Although princess cuts are usually deep, this stone faces up much smaller than most one-carats.

4.  Good/good on polish and symmetry are usually below the ratings we like on GIA stones, but there is no documentation for how "GSI" comes up with these ratings.  Same with the claimed color being "I".

 

Neil is right that you'll need an independent appraisal if you want to contest this certificate.  However, if the place you bought the ring from has a clear open return policy, you might just want to take advantage of that instead, then buy from a source than uses a more reputable grading entity.

 

It seems you are having misgivings about what you bought but are unsure about how to proceed.  In a case like that, return the ring if you can for a full refund.  If you are only given store credit toward another purchase, and this wasn't clear to you before you made the purchase, see if your credit card company can help resolve this.  I'm guessing, but it seems you think you have been trapped, but you don't know if it's the quality of what you bought -- probably -- or some other trick.

 

I VS-2's on the Diamond finder here in the .97-1.02 size range run from $1800 - $5400, including both GIA (good) and EGL (not so good) grading reports with, all polishes and finishes.  A 14K ring could be anywhere from $200-800.  Conceivably, you paid $6500 for $2000 worth of diamond and ring... or you could have wound up at the better end of the spectrum.

Edited by jginnane
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1.  Is the setting deliberately two-tone, or are they trying to confuse you with the amount of platinum you received?

2.  The report of authenticity seems to be by Gemological Science International.  Are you comfortable with that?

3.  Although princess cuts are usually deep, this stone faces up much smaller than most one-carats.

4.  Good/good on polish and symmetry are usually below the ratings we like on GIA stones, but there is no documentation for how "GSI" comes up with these ratings.  Same with the claimed color being "I".

 

Neil is right that you'll need an independent appraisal if you want to contest this certificate.  However, if the place you bought the ring from has a clear open return policy, you might just want to take advantage of that instead, then buy from a source than uses a more reputable grading entity.

 

It seems you are having misgivings about what you bought but are unsure about how to proceed.  In a case like that, return the ring if you can for a full refund.  If you are only given store credit toward another purchase, and this wasn't clear to you before you made the purchase, see if your credit card company can help resolve this.  I'm guessing, but it seems you think you have been trapped, but you don't know if it's the quality of what you bought -- probably -- or some other trick.

The setting is white gold, platinum used only for inside Leo small stone. About certificate, is there any difference between them?

I can return this ring for 60 days.

I like the ring but not sure if its worth the money i payed and if its going to have a value with time

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About certificate, is there any difference between them?

Latest post on the subject I can find; same story repeated all over the forum, if you search for "EGL" or "GSI": http://www.diamondreview.com/forum/topic/9499-royal-star-diamonds-85-facet

 

if its going to have a value with time

Very unlikely. Then again, the same could be said of most other new pieces of jewellery. Edited by davidelevi
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I can return this ring for 60 days.

 

 About certificate, is there any difference between them?

 

I like the ring but not sure if its worth the money i payed and if its going to have a value with time

 

It's unlikely any ring will appreciate in value from what you paid.  However, that's a different question from whether you received fair value for your money.

 

Do a little research on this "GSI" versus GIA, which is essentially the gold standard among grading entities.  Or, read some older comments in this forum.

 

But to be 100% comfortable with your decision, go with Neil's suggestion (of an independent appraisal).  That appraiser will estimate for you what the color and clarity are by GIA standards.  (He wouldn't be able to give a complete review without dismounting the stone.)  The appraiser will tell you what the ring is worth in the market, what the replacement value would be for insurance purposes, and answer other questions.

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I can return this ring for 60 days.

 

 About certificate, is there any difference between them?

 

I like the ring but not sure if its worth the money i payed and if its going to have a value with time

 

It's unlikely any ring will appreciate in value from what you paid.  However, that's a different question from whether you received fair value for your money.

 

Do a little research on this "GSI" versus GIA, which is essentially the gold standard among grading entities.  Or, read some older comments in this forum.

 

But to be 100% comfortable with your decision, go with Neil's suggestion (of an independent appraisal).  That appraiser will estimate for you what the color and clarity are by GIA standards.  (He wouldn't be able to give a complete review without dismounting the stone.)  The appraiser will tell you what the ring is worth in the market, what the replacement value would be for insurance purposes, and answer other questions.

 

Thank you....but now im afraid to buy any diamonds....

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So any diamond will loose value?

Over the short term, yes. At the very least, you'll be "out" by the amount of any tax paid and and any profit made by the retailer (which BTw is likely to be higher for a non-traditional, branded cut than on a traditional stone). Over the long term, you are in the hands of the market and the global economy, but if you are looking for an investment (or even just a store of value), I'd pick something other than a diamond.
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Thank you....but now im afraid to buy any diamonds....

Whether that's sensible rather depends on your motivation for buying this one in the first place. As a symbol of love, devotion and dedication (and Money for Nothing, to continue with Dire Straits and cynicism) it's a pretty good one. As a store of value it's not the worst; most collectibles do much worse. As an investment, unless you have millions to spend, it's not a good one.
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Thank you....but now im afraid to buy any diamonds....

Whether that's sensible rather depends on your motivation for buying this one in the first place. As a symbol of love, devotion and dedication (and Money for Nothing, to continue with Dire Straits and cynicism) it's a pretty good one. As a store of value it's not the worst; most collectibles do much worse. As an investment, unless you have millions to spend, it's not a good one.

 

Of course its a symbol of love, thats was the reason to buy it. Just hope i payed reasoned price, not double or triple.

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No way of telling without inspecting the diamond and the ring.

 

Probably not triple - but you could easily have paid double the price of a "normal" 0.99 I/VS2 princess cut. Then again, you are getting a Leo and not a traditionally cut diamond - which makes little difference in terms of resale, but it does look different, and if you (your to-be-fiancée) prefer it, then why not?

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No way of telling without inspecting the diamond and the ring.

 

Probably not triple - but you could easily have paid double the price of a "normal" 0.99 I/VS2 princess cut. Then again, you are getting a Leo and not a traditionally cut diamond - which makes little difference in terms of resale, but it does look different, and if you (your to-be-fiancée) prefer it, then why not?

She still doesnt know about it, thats why im trying to find a perfect stone for the money

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Diamonds are not bank accounts.  Assuming you’re not a diamond dealer, and maybe even if you are, you will not be able to sell them for the amount you paid, much less for MORE than what you paid.  That’s not so much a feature of diamonds as it is a feature of the retail marketplace.  You’re buying at retail and you’ll be selling at below wholesale.  Do not go into this deal expecting to ever see your money again.
 

That’s not the same as saying don’t buy them.  The reason to buy diamonds is because chicks dig ‘em, and you want her to be happy.  They do hold up pretty well and she gets to look at it and be reminded that she’s loved every day for the rest of her life.  It’s the same reason you buy nice clothes, cars, electronics and most everything else you spend your money on.

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Diamonds are not bank accounts.  Assuming you’re not a diamond dealer, and maybe even if you are, you will not be able to sell them for the amount you paid, much less for MORE than what you paid.  That’s not so much a feature of diamonds as it is a feature of the retail marketplace.  You’re buying at retail and you’ll be selling at below wholesale.  Do not go into this deal expecting to ever see your money again.

 

That’s not the same as saying don’t buy them.  The reason to buy diamonds is because chicks dig ‘em, and you want her to be happy.  They do hold up pretty well and she gets to look at it and be reminded that she’s loved every day for the rest of her life.  It’s the same reason you buy nice clothes, cars, electronics and most everything else you spend your money on.

I always thought thats the diamonds hold their value

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I think you are confusing two, possibly three issues:

 

1) Is this the right diamond?

2) Did I pay a fair price for it?

3) Will it hold value?

 

To 1), only you can answer with any certainty. I can tell you that I would not have bought that diamond, never mind at the premium price you paid but at no price whatever. You are not me, and that doesn't make you wrong or me right.

 

To 2), the only way of knowing is to get a qualified, independent professional to see the stone. Being that it's a Leo, and they are sold exclusively through Jared and other Sterling Corp. outlets, you probably won't find another one for much cheaper, but that's different from saying it's "fair value". How much of a Rolls-Royce price is the Rolls-Royce brand?

 

To 3), you got the same answer from 3 people: it won't hold value in the sense of you being able to resell it today for what you paid yesterday. It will hold value in the sense that it's going to be a lot easier to resell than (say) an exclusive designer dress, for which you could pay well more than $6500 and get far less than you would for the diamond. When you resell, your price is going to be determined by the current market price of diamonds (which can go down as well as up), and you will never be able to claim retail store prices as a private seller.

Edited by davidelevi
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They do, sort of, and they’re better than most of what you buy.  But if you buy a diamond and immediately resell it, most people lose between 25-50%.  The range has to do with what you buy (some things are easier to sell than others), how good a shopper you are, and how skilled a seller you are.  None of these are gemological properties. 

The bright side is that, beyond that initial hit, diamonds generally don’t depreciate.  A 10 year old diamonds is usually just as beautiful as the day it was new.  Over time, inflation can overtake all of this.  

As grim as it sounds, try that test with clothing, food, electronics, booze, Chinese plastic doodads or just about anything else you can buy and you'll find it's even worse.  

Edited by denverappraiser
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Upgrades can be screwy deals and the details are important.  Mostly they have to do with a contractual relationship with the seller and the bite has to do with the pricing on the next one.  Normally the deal is that you get 100% of the cash you paid as a credit against a new item that costs at least double.  That is to say, pay $6000 and they’re give you a credit of $6000 against a $12,000 one later.  THAT one can be traded in for one at $24k and so on. 
 

I’ll make up some numbers as an example:
Imagine you buy a stone X for $5,000 with an upgrade policy.  Further imagine you could buy that same stone for $3000 from a no-refunds joint.  Further, imagine you’ll get $2000 in the open market if you try and sell it (today).   Lastly, assume that the $10,000 one, we’ll call it stone Y, could be had for $6000 from the ‘generic’ source.

What to do?  If you buy the $5000 one and trade it in, you end up with stone Y and you’ve paid $10,000 out of pocket for it.  Reasonable enough, right?

Look at the other path.  If you bought the $3000 one, sold it and took your lumps for $2k, and then bought the next one for $6k, you’ll still end up with stone Y but you’re only out of pocket $7k.  Even if you KEEP the first one, you're only out $9k.  

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A good place to look for comps is the ‘diamond finder’ utility at the top of the page.  That’s a database full of offers to sell diamonds from a dozen or so aggressive dealers
.
Here, for example is a GIA graded  0.96/I VS1.  That’s a few points smaller than your leo and it's a better lab and a better clarity but it otherwise looks fairly similar.  We don't know anything about the cutting on either one (which is a big deal by the way).  It’s $2938.  A setting like that is about $400 at the discounters and they’ll size and set it for ‘free’ if you buy both the stone and the mounting together.  $3,400 out the door.  

 

That's about half your price.  Don't take that as evidence that either your's is a ripoff or that that one is a bargain.  That's going to depend on information that's not present, like the cutting and things like how much you value the trade in program or the local storefront.   I bring it up because you CAN get at least superficially similar specs for a significantly lower price. 
 

http://www.b2cjewels.com/dd-5125821-0.96-carat-Princess-diamond-I-color-VS2-Clarity.aspx?sku=5125821&utm_source=diamondreview.com&utm_medium=referral&utm_campaign=diamondreview.com

Edited by denverappraiser
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Thank you all for the help.

By value i meant, that after a few years, when im going to upgrade the stone, i will get same money for it ( for the stone only )

If you can cope with a long and sometimes a bit confused thread on this topic, a couple of years ago we went through exactly this scenario - funnily enough involving a Leo 0.98 I-colour princess cut - here: http://www.diamondreview.com/forum/topic/7188-helpadvice-on-my-upgraded-leo-diamond
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