From Australia but want to buy diamond from USA

[darkness13]

HI Everyone,

This is the first post I have ever written, reading all of the threads on PS is just so helpful and there are so many knowledgeable people on here I was hoping someone might be able to help me.

I want to buy a diamond and have it set in the US and have found a ring designer, Victor Canera, in LA that I love! Buying from the US makes sense as the diamonds are so much more price competitive over there, however I have a few concerns.

1). I think I will have to pay customs tax when the ring enters Australia which is 13%, if this is the case it will add a substantial amount onto the cost and will therefore be pointless me ordering from the US to receive a competitive price - any else been through this process from Australia? Would be great to hear others experiences...

2). This is less of an issue, but, I do have some concern about never seeing the diamond myself before we outlay a big sum of money. I'm looking at buying a 2.5-3.5 carat stone so I'm worried that I will be less then impressed when I see it in person. I understand there are independent bodies like GIA who can verify its authenticity and specs but I still wonder if that's enough. I have been onto James Allens site and they have great detailed pictures of their diamonds which are helpful for someone me who lives OS. Anyone else bought diamonds internationally and not seen them in person until they are paid for and delivered? ?

Any comments, help, advice would be so greatly appreciated.

Thanks for taking the time to read this fellow PSers.

Renee.

 

[justginger]

Hi Renee,

The apprehension you're feeling is completely normal -- everyone who makes a big international purchase, sight unseen, goes through it. One thing I would recommend is using the services of an experienced appraiser to be your 'middle man.' You can purchase the center stone, have it sent to someone like Neil Beaty, and for a pretty reasonable price he can analyze the stone for you. He can produce a Sarin, ASET, whatever, and provide a reasonable (not inflated!) true retail value of the stone so you can judge if you've purchased it for a fair price. Having looked at a great number of diamonds over his career, he can also provide an honest, informed opinion on whether the stone is 'pretty' (for lack of a better way of putting it). I used him when I bought my 4.65ct antique cushion and the reassurance he gave me was excellent.

Have you looked around at stones of this size here in Australia? I mean, there's no doubt that if you go with an ideal cut stone from a reputable vendor in the States, it WILL be prettier than anything you've seen in the chain stores here, no doubt.

Your figures are a bit off -- Oz and the US have the AUSFTA, so purchases made in the States are exempt from the normal 5% import duty, and only liable for the 10% GST (plus 'handling' fees) when entering the country. So that saves you 3% from your estimates. Plus the 10% that you are paying in GST isn't going to come close to negating the savings you'll get by buying overseas. I don't know if you've actually shopped around here, but prices are exorbitant. Honestly. I don't feel it's unreasonable to suggest that you'll pay double here, for a lower quality product (especially in terms of workmanship when you're in the league of VC), than what you'd get from the US. I'm at the point that I flat refuse to buy jewelry in Australia - not even simple pendants. I don't mind slightly higher prices to make up for keeping my business local, but a lot of what happens in jewellery stores here is flat robbery.

Please let us know if you need any help looking for the center stone for your ring. There are a lot of ladies (and men!) here with a great eye and top sleuthing skills.

 

[darkness13]

Thanks so much justginger, I could not agree more re your opinions around stores here in AUS. Yes Ive looked and bought from the main stores here and it really is robbery - gggrrrr.

Im so glad someone else feels my pain

 

[arkieb1]

Hi, I have purchased a few of my items from the US. I agree in part with Ginger, we have a free trade agreement with the US so instead of paying 15% in taxes and duties if you get the vendor to fill in the appropriate AUSFTA declarations you save 5%, but unfortunately there is no way to get out of paying the 10% GST if you get the item mailed to you.

We are also experiencing a double whammy at the moment, because our Aussie dollar just took another nosedive, so by the time you do the currency conversion which will leave you another 10% worse off the total price (currency conversion + GST = 20%). Add 20% of whatever you find that will give you the closest actual costs. Smaller stones here at the moment are probably worth buying in Australia because of our exchange rate, but larger ones and specific items like fancy colour diamonds for example are still cheaper.

I own a couple of Victor's rings I can't recommend him highly enough, lovely guy, wonderful workmanship.

As to trusting online vendors, please buy from a trusted one and if it seems too good to be true it probably is!!!!

 

[darkness13]

Thanks for your response arkieb1, I wonder if I did buy a diamond from here in AUS and posted it over to the US for Victor to set, would I get charged the tax on the entire ring when it enters AUS completed or just what I paid to Victor for the setting?? Would seem pretty wrong if they decided to try and sting me for the entire piece seeing as the diamond was from the US.

I wonder if anyone else has been through this scenario??? If they did try and charge me for the entire piece (diamond included) how would they place an entire value on it?

hmmm.

arkieb1 - can you recommend any good diamond vendors in the states from your experience? I am going in blind.

 

[darkness13]

Justginer,

Just wondering if you or anyone else knows approximately what an appraiser costs? I would have no idea??
Obviously I would need to go to the source for specifics but just after a rough guide if anyone can help...

thanks

 

[James81]

Customs tax is 10% if over $1000. To save on the tax you could buy the diamond and get it set here. You don’t have to pay tax if buying the diamond only.

I recently bought a ring from Blue Nile but kept it under $1000. Was very pleased with the quality. Also agree about the prices here. Good luck!

 

[darkness13]

Hi James 81,

Are you sure? I haven't heard that you don't have to pay any tax at Australian customs if purchase a 'stone only' from the US?

Anyone else bought stone from the US and bought them back?

 

[hmhmhm]

Hi there

If you are thinking of going with Victor for the setting, have you thought about buying the diamond from Victor as well? Victor will take a video of the stones in various lighting to give you an idea of their performance (although, I don't find his videos as well shot and useful as, say, Good Old Gold's).

The problem I had with buying from Australia was buying the stone from one US vendor and sending it to another US vendor for setting. There's no insurance available to non-US residents for the stone, which was problematic for me because I would not risk the stone being uninsured while it is at the setter's.

 

[Daisyoz]

Justginer,

Just wondering if you or anyone else knows approximately what an appraiser costs? I would have no idea??
Obviously I would need to go to the source for specifics but just after a rough guide if anyone can help...

thanks

We paid $66 to have our ring appraised by someone in Melbourne CBD last month. My FI's SIL paid $50 but that was 2 years ago.

It s recommended that you buy the stone and setting in one place. Victor sells his own line of H n A rounds and vintage cushions through his website or can source a stone for you.

 

[darkness13]

Thanks Daisyoz, I was meaning the cost of appraisers in the US, not here in Aus
My risk is buying from over there and not being able to see it in person before I buy so it was suggested by another PS person that I get it appraised independently over there in the US before I purchase to ensure its value and specs etc.

 

[arkieb1]

Trusted vendors like Victor, Brian Gavin, Good Old Gold and so on all sell top performing diamonds. You should have no issues provided you stick to someone with a good reputation.

 

[darkness13]

Trusted vendors like Victor, Brian Gavin, Good Old Gold and so on all sell top performing diamonds. You should have no issues provided you stick to someone with a good reputation.

Thank you

 

[James81]

Sorry, I didn’t explain that very good and actually confused myself lol. Let me clear it up.
With the diamond and setting you’ll pay 5% Customs Duty + 10% GST and an additional ~$50 import fee for anything more than a $1000. If you buy a loose diamond you don’t have to pay the 5% Customs Duty.

 

[justginger]

If I remember correctly, it was extremely cheap to use Neil (relative to the actual cost of the stone). I think it was in the neighborhood of about $100-150? Definitely less than I expected, and the service was worth much more for my peace of mind.

I think buying sight unseen from a reputable vendor may be fine for some. For me, it was not, especially for a purchase of this size. I wanted a third party involved to inspect and ensure that everything was as it was supposed to be before being set in a custom, non-refundable setting.

 

[Vlpet]

Hi Renee,
I purchased a 1.5ct stone and setting from Brian Gavin a few months ago and had it sent to me in Brisbane. The process was very easy. BGD had to fill in some free trade paperwork for customs and as usual customs mucked about for a few days. Like its already been said its GST on the whole purchase including postage costs plus a bit if admin fees.
Quality wise, I found BGD (like many other top suppliers here) to provide an outstanding product and wouldn't hesitate shopping for large jewellery purchases from these players. They insure the the postage via FedEx and delivery was quick. About a week including customs delays.
For the bank wire I used OzForex as they provided the best conversion rate and the transfer was quick. Less than 24 hours.
For local insurance unfortunately we can't use the US suppliers so I went with Q Report who are underwritten by Chubb. I think its about 3% plus an initial book charge.
Good luck as its one very large rock you're looking for