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I found this information on the internet and thought it'd help some of you who find diamond rings and wonder what to do with them. I currently have a 1 ct. Man's diamond ring that I'd like to sell but wary about selling to an individual. Too many scumballs out there who might shoot me for the ring or rob me of it. Rather sell to a dealer as it costs me nothing but I don't want to just give it away either. Figure many of you run into the same problem.
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Selling your jewelry is not one of the easiest tasks, no matter what the item is or what the selling reason is. Here are some points and information that you should keep in your mind when you are selling your diamond and asking for a quote from various places. This information mainly relates to diamonds as they have the most market value. Let's consider a fictitious situation and person, Mr. Badmar Age. After 3 years of married life, he and his wife had an amicable divorce. He is now in possession of the 1 carat round diamond engagement ring and not a clue as to what to do with it. Mr. Badmar Age does not intend to get into any kind if commitment for a long time to come. He digs through all the paperwork and finally finds out that his diamond was an H color, SI 1 Clarity Round Brilliant Cut. He also recovered the stone certificate. The Gemological Institute of America had certified the stone. He also remembered that the stone was cut well, according to the premium cut proportions. Finally the receipt mentioned that he had bought the stone from "Mom & Pop Jewelers" for $ 5,000 and the platinum ring was for $ 500. Now he has some idea about the engagement. Mr. Badmar Age (referred to as Mr. B from now on) starts his quest for selling the diamond and the platinum engagement ring.
Trip to the Original Jeweler.
Mr. B remembers that the jeweler from whom he had bought the ring was very helpful and ponders if he could be of any assistance to him. With that thought in his mind he pays a visit to his old jeweler, "Mom and Pop Jewelers". He meets up with the their main buyer and informs him that he had bought the engagement ring from his store and would like to sell it to them as the marriage broke up. The jeweler verifies that the stone was actually bought from him and proceeds to speak to Mr. B. The jeweler asks Mr. B for the stone's certificate. After verifying the stone with the certificate the jeweler gives Mr. B an offer for $ 2,000. This shocked Mr. B and he left angry from the store thinking that this jeweler was being unfair to him.
Trip to Other Neighborhood Jewelers.
After that bad experience Mr. B. decided to go to various jewelers in the neighborhood to find out other prices. However the offers he was getting were very dismal and no where near to what he had paid for the stone. Finally he made a last stop to another jewelry store, "Reputed and Honest Jewelers". After examining the stone Mr. Reputed, the store gemologist explained to him a few details. The actual conversation between Mr. Reputed (Referred to as Mr. R.) and Mr. B is as follows.
Mr. R: "Mr. B, before I give you an offer on the stone I would like to ask a few questions if you don't mind and explain few things to you. If you have any questions then please feel free to ask me."
Mr. B: "Sure Go Ahead. All I have been hearing are ridiculous prices for my stone and I have no clue why? Moreover, I have a lot of unanswered questions, which I would love to be answered."
Mr. R: "I am sure! I would like to know how much you paid for this ring and where did you buy it from?"
Mr. B: "I bought this stone 4 years ago from Mom and Pop Jewelers for $ 5,500, including the platinum ring. The GIA Gem Trade Laboratory certified it. Did I pay too much for this stone?"
Mr. R: "Not at all! $ 5,500 sounds reasonable for your stone. Do you have the stone certificate with you."
Mr. B: "Yes I do have the certificate with me! I still don't understand why am I getting low quotes for my ring."
Mr. R: "Let me explain! There are a few factors that work against you. You bought the stone at retail prices. Put yourself in the retailer's shoes. How can I, as the retailer, buy the stone from you at the price I would sell the stone for? I have to make profit on the diamond. That directly reduces the price of the stone by a certain percentage. On the other hand, I have a list of suppliers who are ready to supply diamonds to me as and when I require. They supply the stones to me at no obligation to buy. I keep the stones with me in my inventory till it is sold. If it is not sold within a few days then I have the choice of returning it back. With you I do not have that option. Moreover, I am going to pay you the full amount outright, as compared to my suppliers, who give me a few days to pay for the stone. You also have to understand that I am not currently looking for a stone of your specifications. I will be keeping this in my inventory despite my desire. I am not sure when the stone will sell? It can be sold tomorrow or maybe next year. I bear the risk when I am buying it."
Mr. B: "Hmm! Does the shape of the stone effect the pricing? Would I have done better if I would have bought a fancy shaped diamond. And does the diamond certificate help?"
Mr. R: "The shape of the stone effects the price. In your case a round brilliant cut is easier for me to sell then a fancy shape stone like a marquise or a heart shape. There isn't sufficient demand for such fancy shaped diamonds. This further reduces the selling price of the stone. The diamond certificate does help. This way I am sure that I am buying a stone for what it is, rather than speculating on what it will be. All the stones that I sell in my store are all certified. I have to incur the expenditure for certifying the stone. Let's take the example of your stone! It is an H color, SI1 Clarity. Now if I would have bought it uncertified then I have to be as accurate as possible on it while grading it. If I had graded the stone as a VS 2 clarity and H color, then after certification I would have incurred a loss. Moreover, the stone is set in the ring. I have to estimate the actual weight of the stone through various formulae in order to get the closest estimated carat weight. Any deviation on the negative side results in a loss. As a jeweler, I am in a very vulnerable position."
Mr. B: "I understand your situation now. When I had bought the stone, I had an appraisal that said the replacement cost was $ 6,500. What is this value?"
Mr. R: "The appraisal value of $ 6,500 is the replacement cost. It is the value that a jeweler would be able to replace the ring exactly in case of any loss or theft. The appraisal amount once again is at the retail replacement cost. That value has no bearing when you want to sell your ring."
Mr. B: "Oh! I understand. I had been to some pawn shops in the neighboring area and they gave me absolutely rock bottom offers for my ring."
Mr. R: "Pawn shops work in a very different manner. They buy jewelry at very low prices and sell them quickly at again, rock bottom prices. They are more interested in selling the jewelry as soon as possible by making less profit. Pawnshops prefer higher liquidity. They do not like to see a piece of jewelry in their stock for a long period of time. Hence, they are not the best choices when you want maximum value for your diamond."
Mr. B: "You have been talking about selling my diamond and have not mentioned anything about my ring. Why is that so?"
Mr. R: "For me, as the jeweler, the ring holds scrap value. The only thing of value to me is the diamond. I will be selling the metal, platinum or gold, to my metallurgist for scrap value."
Mr. B: "Scrap Value! How much will that be?"
Mr. R: "Scrap value will be the total gram weight of the ring multiplied by the daily metal prices. This usually amounts to very nominal prices when you compare it with what you paid for it."
Mr. B: "OK! Would you suggest selling the ring over the Internet?"
Mr. R: "Yes! That is actually a very good option. There are many Internet Auction Web Sites that allow you to sell your jewelry for a small fee. You have an option of putting a reserve price on your ring below which you will not sell the ring. These auction web sites get millions of visitors every month from all over the world. However it is always a good idea to check and see which web site gets a lot of visitors, their fees, what are your competitors selling their rings for, what benefits you have over them, etc."
Mr. B: "I will definitely try that. Do you have any more suggestions for me?"
Mr. R: "You should consider selling the ring to a private party, like a friend or maybe your cousin. You can recover maximum money you paid for the ring if you sold it to a private party. However, you might not get your entire money. Once again, if you sell your ring to a friend, he will compare your price to a regular jeweler's price. If the price is same as the jewelers then he will prefer to buy it from the jeweler, mainly because of the service and return policy. There are a lot of jewelers who would take the ring back in a few days. However, when your friend buys from you then he is stuck with it, putting him in the same predicament."
Mr. B: "Thank you very much Mr. R. I appreciate all the help that you have given me. I shall try the other options of selling my ring."
Mr. R: "You are welcome. I wish you good luck selling your ring."
*******************************************
Selling your jewelry is not one of the easiest tasks, no matter what the item is or what the selling reason is. Here are some points and information that you should keep in your mind when you are selling your diamond and asking for a quote from various places. This information mainly relates to diamonds as they have the most market value. Let's consider a fictitious situation and person, Mr. Badmar Age. After 3 years of married life, he and his wife had an amicable divorce. He is now in possession of the 1 carat round diamond engagement ring and not a clue as to what to do with it. Mr. Badmar Age does not intend to get into any kind if commitment for a long time to come. He digs through all the paperwork and finally finds out that his diamond was an H color, SI 1 Clarity Round Brilliant Cut. He also recovered the stone certificate. The Gemological Institute of America had certified the stone. He also remembered that the stone was cut well, according to the premium cut proportions. Finally the receipt mentioned that he had bought the stone from "Mom & Pop Jewelers" for $ 5,000 and the platinum ring was for $ 500. Now he has some idea about the engagement. Mr. Badmar Age (referred to as Mr. B from now on) starts his quest for selling the diamond and the platinum engagement ring.
Trip to the Original Jeweler.
Mr. B remembers that the jeweler from whom he had bought the ring was very helpful and ponders if he could be of any assistance to him. With that thought in his mind he pays a visit to his old jeweler, "Mom and Pop Jewelers". He meets up with the their main buyer and informs him that he had bought the engagement ring from his store and would like to sell it to them as the marriage broke up. The jeweler verifies that the stone was actually bought from him and proceeds to speak to Mr. B. The jeweler asks Mr. B for the stone's certificate. After verifying the stone with the certificate the jeweler gives Mr. B an offer for $ 2,000. This shocked Mr. B and he left angry from the store thinking that this jeweler was being unfair to him.
Trip to Other Neighborhood Jewelers.
After that bad experience Mr. B. decided to go to various jewelers in the neighborhood to find out other prices. However the offers he was getting were very dismal and no where near to what he had paid for the stone. Finally he made a last stop to another jewelry store, "Reputed and Honest Jewelers". After examining the stone Mr. Reputed, the store gemologist explained to him a few details. The actual conversation between Mr. Reputed (Referred to as Mr. R.) and Mr. B is as follows.
Mr. R: "Mr. B, before I give you an offer on the stone I would like to ask a few questions if you don't mind and explain few things to you. If you have any questions then please feel free to ask me."
Mr. B: "Sure Go Ahead. All I have been hearing are ridiculous prices for my stone and I have no clue why? Moreover, I have a lot of unanswered questions, which I would love to be answered."
Mr. R: "I am sure! I would like to know how much you paid for this ring and where did you buy it from?"
Mr. B: "I bought this stone 4 years ago from Mom and Pop Jewelers for $ 5,500, including the platinum ring. The GIA Gem Trade Laboratory certified it. Did I pay too much for this stone?"
Mr. R: "Not at all! $ 5,500 sounds reasonable for your stone. Do you have the stone certificate with you."
Mr. B: "Yes I do have the certificate with me! I still don't understand why am I getting low quotes for my ring."
Mr. R: "Let me explain! There are a few factors that work against you. You bought the stone at retail prices. Put yourself in the retailer's shoes. How can I, as the retailer, buy the stone from you at the price I would sell the stone for? I have to make profit on the diamond. That directly reduces the price of the stone by a certain percentage. On the other hand, I have a list of suppliers who are ready to supply diamonds to me as and when I require. They supply the stones to me at no obligation to buy. I keep the stones with me in my inventory till it is sold. If it is not sold within a few days then I have the choice of returning it back. With you I do not have that option. Moreover, I am going to pay you the full amount outright, as compared to my suppliers, who give me a few days to pay for the stone. You also have to understand that I am not currently looking for a stone of your specifications. I will be keeping this in my inventory despite my desire. I am not sure when the stone will sell? It can be sold tomorrow or maybe next year. I bear the risk when I am buying it."
Mr. B: "Hmm! Does the shape of the stone effect the pricing? Would I have done better if I would have bought a fancy shaped diamond. And does the diamond certificate help?"
Mr. R: "The shape of the stone effects the price. In your case a round brilliant cut is easier for me to sell then a fancy shape stone like a marquise or a heart shape. There isn't sufficient demand for such fancy shaped diamonds. This further reduces the selling price of the stone. The diamond certificate does help. This way I am sure that I am buying a stone for what it is, rather than speculating on what it will be. All the stones that I sell in my store are all certified. I have to incur the expenditure for certifying the stone. Let's take the example of your stone! It is an H color, SI1 Clarity. Now if I would have bought it uncertified then I have to be as accurate as possible on it while grading it. If I had graded the stone as a VS 2 clarity and H color, then after certification I would have incurred a loss. Moreover, the stone is set in the ring. I have to estimate the actual weight of the stone through various formulae in order to get the closest estimated carat weight. Any deviation on the negative side results in a loss. As a jeweler, I am in a very vulnerable position."
Mr. B: "I understand your situation now. When I had bought the stone, I had an appraisal that said the replacement cost was $ 6,500. What is this value?"
Mr. R: "The appraisal value of $ 6,500 is the replacement cost. It is the value that a jeweler would be able to replace the ring exactly in case of any loss or theft. The appraisal amount once again is at the retail replacement cost. That value has no bearing when you want to sell your ring."
Mr. B: "Oh! I understand. I had been to some pawn shops in the neighboring area and they gave me absolutely rock bottom offers for my ring."
Mr. R: "Pawn shops work in a very different manner. They buy jewelry at very low prices and sell them quickly at again, rock bottom prices. They are more interested in selling the jewelry as soon as possible by making less profit. Pawnshops prefer higher liquidity. They do not like to see a piece of jewelry in their stock for a long period of time. Hence, they are not the best choices when you want maximum value for your diamond."
Mr. B: "You have been talking about selling my diamond and have not mentioned anything about my ring. Why is that so?"
Mr. R: "For me, as the jeweler, the ring holds scrap value. The only thing of value to me is the diamond. I will be selling the metal, platinum or gold, to my metallurgist for scrap value."
Mr. B: "Scrap Value! How much will that be?"
Mr. R: "Scrap value will be the total gram weight of the ring multiplied by the daily metal prices. This usually amounts to very nominal prices when you compare it with what you paid for it."
Mr. B: "OK! Would you suggest selling the ring over the Internet?"
Mr. R: "Yes! That is actually a very good option. There are many Internet Auction Web Sites that allow you to sell your jewelry for a small fee. You have an option of putting a reserve price on your ring below which you will not sell the ring. These auction web sites get millions of visitors every month from all over the world. However it is always a good idea to check and see which web site gets a lot of visitors, their fees, what are your competitors selling their rings for, what benefits you have over them, etc."
Mr. B: "I will definitely try that. Do you have any more suggestions for me?"
Mr. R: "You should consider selling the ring to a private party, like a friend or maybe your cousin. You can recover maximum money you paid for the ring if you sold it to a private party. However, you might not get your entire money. Once again, if you sell your ring to a friend, he will compare your price to a regular jeweler's price. If the price is same as the jewelers then he will prefer to buy it from the jeweler, mainly because of the service and return policy. There are a lot of jewelers who would take the ring back in a few days. However, when your friend buys from you then he is stuck with it, putting him in the same predicament."
Mr. B: "Thank you very much Mr. R. I appreciate all the help that you have given me. I shall try the other options of selling my ring."
Mr. R: "You are welcome. I wish you good luck selling your ring."
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