What is the Value of my Diamond
What is The Truth About Jewelry Appraisal?
How much is my diamond worth? GIA, EGL, or AGS etc. certificate reports do NOT include the dollar value; they are Certified Reports stating the diamonds specifications. People look to their jewelry appraisal for the value of the diamond without realizing that appraisals are mostly done for insurance purposes. The truth is you can NOT sell your diamond for the face value of an appraisal. The question is why?
How to Understand an Appraisal
Most “insurance appraisals” give values approximately 100% above retail value in the jewelry industry; It should be obvious that these appraisals are inflated. They do not reflect the true value of the diamond.
It is not uncommon for the appraisal to be double the selling price of the diamond. As the buyer you would think what a bargain? But is it? Why do they do that? Who is benefiting from issuing high appraisal values?
Think about it for a moment. The insurance company is charging you a higher premium than what is needed because they can replace the diamond at half the appraised cost. The Jewelry looks like a hero; after all he is giving you an amazing discount.
But that is not where it ends. There are five people between the mining company and the you the end user who buy and sell and make a mark up on diamonds..
- The Diamond Mines – such as DeBeers
- The Diamond Cutters – That is who we are
- The Market Buyer
- The Diamond Wholesaler
- The Diamond Broker / Dealer
- The Jewelry Store – like you see in the Malls
- The End User – which is you
The Net result is that an appraisal does NOT represent the actual value of your diamond. Most people are shocked to find out just how little their return on this investment is. Pawn shops will rip you off. Not only do they give you next to nothing for your diamond but charge rental if you should decide to sell it on consignment.
The way that we do business is to ask you to get your highest price from multiple reputable jewelers and then come to us. We will guarantee their price as “our cash buy out” but recommend that you sell it on consignment through us without a monthly rental fee. This is how you can maximize the resale return on your investment. It takes a little longer but it is well worth the extra dollars in your pocket.