Need advice with pawn shop loose 2.12 carat princess cut

[ewa8949]

My fiance suggested that I post here to get advice. A close friend of mine has a client of his who owns a pawn shop that has loose diamonds. There is some trust since my friend knows this family and it is a third generation with 3 stores. His client found us a really nice 2.12 carat diamond that a local independent appraiser of gemologists said was worth $28,000 but it was the pawn shop who provided the report. The diamond looked beautiful and only had one very tiny inclusion that you could see if you looked carefully with the jewelers loop. The pawn shop is asking for $10,000 for this which seems like a very good deal and includes a basic 18k white gold setting. We asked about a GIA report and he said he could send it off but it would cost us $500. There is no laser etching of numbers on the diamond.

Here is what the appraisal report from the pawn says.

Shape and Cut: Princess Modified brilliant cut
Measurements: 7.30 x 6.93 x 5.19mm (approximate)
Weight: 2 .12 cts (actual ; stone weighted loose)
Proportions: Very Good
Depth 74.9%
Table: 74%
Girdle: Medium to Thick, Polished
Culet: Closed
Finish
Polish: Good
Symmetery: Very Good
Clarity: VS-2
Color:
Fluorescence: Faint Blue (lw)

The preparer of the document had GG/ICGA as his credentials so I am not sure how relevant that is to the report.

What are people's opinion of this? Should I pay the $500 to get a GIA report? Is this a good value? My fiance is really excited about it and wants to be sure.

What other things or documentation should we ask for or ask about?

On a different note has anyone ever worried about a bait and switch where a different diamond is put in the ring? I am not sure how to really know if the same diamond was added.

 

[MarionC]

I am a novice and I'm sure others with more experience will comment, but you can look up GIA fees on their website. $500 seems like a lot, even if you get it laser engraved.[?] This sounds like a diamond worth pursuing further if you like it. Perhaps you could negotiate more on price.
If you look at it under a scope and map the inclusions you will know that diamond and they cannot switch it. If you send it to GIA they will engrave the girdle.
What color is it?

 

[dk168]

The shop is charging for a service, not just for sending the diamond to GIA for appraisal and have the certificate number engraved, and that should include packaging and insurance etc. while the diamond is away on appraisal.

The questions I would be asking are these:

* Who is responsible for the diamond while it is being sent away to be appraised? (It should be the shop as they still own the diamond unless it is sold to a buyer)
* Who is paying for the 500 USD required to have it appraised? (see below) (I expect buyer to pick up the cost IF the stone is to be purchased)
* Would the asking price still holds if the diamond comes back as better? (If they intend to ask for more, than I would walk)
* Would the asking price be reduced if the diamond comes back as worse? (If they reduce the price then I may still buy it)
* Can the potential buyer walk away if he/she is not satisfied with the appraisal and final asking price if changed? (If they say no, and insist the buyer to pay for the appraisal upfront, then I would walk away now)

These are ones I can think of so far.

Personally I would rather pay the extra 500 USD in order to have it appraised and engraved, than to risk the diamond coming back as lesser quality than originally informed.

Not sure if the above is realistic, however, for the money involved, I'd like to have my cake and eat it.

DK

P.S. Not sure how pawn shops operate where the OP lives, however, in the UK, pawn shops tend not to lend more than 20% of the value of the goods pledged with them. When they sell the goods that have not been redeemed, they would need to recoup that money back and to make a profit. Therefore, pawn shops can have good bargains at times.

 

[ewa8949]

Wow thanks for the quick and fast reply. After discussing with my fiance we decided to get this diamond and forgo paying $500 for a GIA report. She called the original appraiser in downtown and he could even remember the diamond from the report in 2012. She felt good enough about report and what she saw that she thinks she this is the diamond for her.

She called GIA and it was $60 in insurance each way for shipping plus the report would cost $169. They have a rush service that is double the price and that comes much closer to the $500 the pawn shop owner said. The GIA report would take almost 2 months because they said they have a huge backlog right now.

This shop has been in business for 3 generations and my friend knows the owner so I think this is a very good deal.

We also decided to not bother with laser engraving as well. The pawn shop will map the diamond for us so I feel good enough about that. I have not read these forums to see what people's thoughts are on laser engraving but my gut instinct thinks to skip that.

I think that $10,000 USD is a fair price for a 2.12 cart princess cut from a pawnshop given how the appraisal report went.