Mounting an Emerald Without Damage

[benjaminpendleton]

I''''m in the process of selling an emerald; from what I understand, there is the potential for an emerald to be damaged by the jeweler during the mounting process. Will the jeweler expect more money from the customer than normal since it''''s an emerald? Will the jeweler want a bigger fee since it''''s not their stone? Is there insurance that the jeweler carries in case of such events? Can the customer buy insurance for the setting process? In the end, how much extra will it cost the customer to bring in their own emerald? I want to be very up-front about any extra potential costs to them. Thanks for your help!

 

[denverappraiser]

Emeralds are usually fancy shapes, meaning not round, they’re often fairly large and they are often set into difficult mountings. For this reason, yes they tend to cost more to set than a typical diamond job.

Many stores will included the setting fee as part of the purchase price when you buy a stone from them and this would not apply for a stone that you supply from elsewhere.

Most jewelers won’t accept breakage risk on an emerald anyway so no, there isn’t an extra charge for the liability associated with it. No, there is not insurance available to them for this.

Yes, you can buy insurance as a consumer. Contact jewelers mutual or do a search for discussions about them here on the forum. In most markets the cost is 1-2% of the declared value.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[benjaminpendleton]

Thanks very much, Mr. Beaty, I''ve appreciated reading your postings on other subjects and very much appreciate your help on this one. The emerald I''m selling is a 1.96 carat Panjshiri, "step cut in very good shape." I assume that means emerald cut ( I bought it in Afghanistan and also assume it was cut in Pakistan or India and brought back into Afghanistan for sale; and yes, I had it appraised by David Atlas to make sure that I got the real goods! Appraised wholesale value $4000. You independent appraisers are great!). Does the fact that it''s an emerald cut make any difference on the cost of the setting? What will their jeweler tell them when they walk through the door?

 

[denverappraiser]

Assuming that military duty is what took you to Afganistan, thank you for your service.

How difficult it is to set a stone depends on both the mounting and the stone and what the jeweler will tell you depends on the jeweler. In general, step cuts are more difficult to set than rounds and the variety of choices for length/width ratio means that the prong placement has a few more issues for them to consider. The jeweler should tell you first if your plan will work at all, what he/she will charge and how long it will take to do the job. I would expect them to specifically disavow any liability for breakage on the stone and I would expect them to inspect the stone while you’re still there and report to you about any current damage or areas that they think are especially risky.

Have you got a buyer lined up? If so, talk to them about exactly what they want and let them contract for it so that they can buy the insurance. If not, why are you setting it? In most consumer resale markets you will do better with a loose stone anyway. ‘Wholesale’ may not be the relevant market for your situation but I’m sure Dave or his staff has supplied you with good council on what you can expect to realize on resale.

Breakage risk on emeralds is considerably higher than for diamonds. You’re smart to be worrying about this in advance.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[benjaminpendleton]

Thanks again, Mr. Beaty, for the great practical advice, it''s a really big help. You''re doing everyone a valuable service.
FYI, I did serve in the military, but my initial time in Afghanistan was as a photographer, during the Russian occupation in 1983 and also while the Afghan Communists were still holding on in 1991. During my second visit, I met a very sincere young man while traveling into northern Afghanistan. I found out fairly recently that he was Ahmad Shah Massoud''s brother-in-law and had that he had eventually become the head of the Panjshiri emerald business. I went to visit him again this past winter and had a great time; he really is an amazing, gracious man. I bought an emerald, partly to try to pay him back for his kindness and partly to see how I would do. According to the appraised wholesale and retail value, I did OK (of course, selling it might be another thing altogether...but I''m hopeful...). I''m actually heading back in a couple of weeks, partly to scope out the situation further but mostly just to visit.
Well... while on the subject... although this emerald is already spoken for... IS there a potential market out there for Panjshiri emeralds, especially in the New York, Philadelphia, D.C. areas? Or Denver maybe??? In English (translated from jeweler-speak by David Atlas) I ended up with a 1.96 carat, "step cut in very good shape", "great color"ed (slight hint of yellow), "average clarity," presumed slight to moderately enhanced emerald most suitable for mounting on a ring, appraised for $4,000 wholesale, $8,000 retail (Mr. Atlas was a REAL pleasure to work with by the way; and, yes, he did give me the jeweler-speak version on my certificate of appraisal). Can a know-nothing like me with a great source on my one side and a great appraiser on the other survive, or will I be eaten alive? Should I be more wary of the Russians, the Afghan Communists and the Taliban or my friendly neighborhood jeweler?

 

[chrono]

Date: 10/16/2007 7:14:58 PM
Author:benjaminpendleton
I''m in the process of selling an emerald; from what I understand, there is the potential for an emerald to be damaged by the jeweler during the mounting process. Yes, that is correct. Will the jeweler expect more money from the customer than normal since it''s an emerald? I don''t know with 100% certainty, but it isn''t likely that they will charge more. Most have a standard setting fee. Will the jeweler want a bigger fee since it''s not their stone? Some jewellers will set stones that they didn''t procure and some will not. It is up to the individual jewellers. If the jeweller accepts the work, the rate should be their standard rate. Is there insurance that the jeweler carries in case of such events? The jeweller usually does not guarantee no damages to your stone during the setting process. It is up to the customer to absorb that risk unless the stone is procured from the same jeweller. Most jewellers have that clearly written in their setting policies. Can the customer buy insurance for the setting process? Yes, it is up to the customer to insure the gemstone themselves. There are insurance companies that will insure loose stones - most likely Chubb or Jewelers Mutual. In the end, how much extra will it cost the customer to bring in their own emerald? Just the cost of your insurance. I want to be very up-front about any extra potential costs to them. Thanks for your help!

Ben,
My answers are in magenta.