Selling over the internet

[amevang]

This might be the stupidest question you''ve ever seen here but I can''t resist asking. What do you think of selling a loose diamond over the internet? You''ve seen the ad''s; "Send us your diamond and we''ll send you a quote, if you don''t like the price we''ll send the diamond back". I''ve asked for quotes based on the GIA report I have but I don''t dare send the diamond to anyone.

I''m not so sure on the price I should expect but the first offer I got was laughable. $1700. on this.

GIA report 1996

cut: radiant
weight: 1.01 carats
depth: 62.3%
table: 71%
girdle: thin to medium
culet: none
polish: good
symmetry: good
clarity: vs2
color: F
flourescence: none

Am I crazy to even consider? I live in New Mexico where there are no diamond buyers that I can find and I don''t want to put out a classified ad for fear of attracking crazy people.

Any suggestions?

Thanks so much. BTY this is the greatest site for getting just the facts.

 

[neatfreak]

I think those things are pretty sleezy...but at the same time, selling a diamond won't net you nearly what you paid for it...so if the company is legit $1700 isn't a horrible offer I hate to say it...

You can buy a new 1 carat F VS2 radiant for $5k or less (and most of them are quite a bit less) so $1700 isn't too bad...

 

[denverappraiser]

Direct selling diamonds is remarkably difficult and it does involve dealing with a certain amount of creeps and wierdos and it does involve a certain amount of risk. Both of these can be solved by paying someone else to deal it but, as you observe, the dealers want to be paid. It is often best to use a consignment type dealer who works on a commission, especially if you live in an area where local sales are unlikely. There are several online that are often recommended here as well as some with retail operations in bigger marketplaces.

The upside of this is the obvious higher prices. The downside is twofold. First is the schedule. You don’t get your money until it sells and this may be a while. That’s just the way it goes. The other is the exposure to the dealer. You are effectively business partners with the dealer and you need to be concerned if they are reasonably displaying things, if they are paying their bills etc.

It''s worth noting that ''selling over the Internet'' isn''t really what''s happening. It''s still just a deal between 2 or possibly 3 people and the strength or weaknesses have to do with the people involved. The Internet is just a place to advertise and a means of communication.

Direct advertising of the style of ebay or craigslist works to an extent but there are some risks to both the buyer and seller this way that tend to make for logistical difficulties that either make the deal undoable or tend to drive the prices down. There are also hybrids of the two where you do your own advertising and promotion and use a 3rd party appraiser and what amounts to an escrow service when the deal comes along to protect both your interests and those of your buyer. You ARE going to need to trust somebody whether it''s a jeweler, an appraiser, a broker or someone else. Choose your players and this gets a lot easier.

If you go with a dealer, and depending the marketing strategy you choose, you may want to ‘update’ that 1996 GIA.

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

 

[amevang]

Thanks so much Neil but I''m so inexperienced there are many things I still don''t understand.

First, I''m not sure what you mean by "dealer"?

Second, could you point me toward a post or topic that recommends a reputable "dealer".

Third, out of curiosity, I don''t understand how one could invest in diamonds without being in the business if the sell/buy prices are so far apart and diamond prices are so subjective. The analogy is that one cannot invest in stock unless you are already an expert in stocks.

Fourth, I''m also new to forums so I''m not sure if I can ask this question here but I received an offer based on the GIA report of 2500 - 3000 from this company. SSJewels.com How do I check them out?

Thanks again and I apologize if I''m asking repeat questions.

Annette

 

[denverappraiser]

I don’t recommend specific dealers because I think it’s a conflict of interest for appraisers to be doing that but I’m sure others will come along who will. I use the word ‘dealer’ and a more generic version of ‘jeweler’. Really it’s the same thing but people tend to thing of ‘jeweler’ as merchants who include things like watches and giftware and who have a retail storefront somewhere. There’s nothing wrong with that but there are also lots of perfectly good merchants that don’t quite look like that any more. Try using the search box for threads containing the word ‘consignment’.

To check out a company that you're considering doing business with, start with their local BBB. Asking here about them (like you just did) is often a good way to fish for reviews from their prior customers although sometimes it helps to start a new thread with their name in the title. Google their name, the names of their principals and their phone number and see what turns up. Well established companies usually have a trail that’s easy to find although do be careful about multiple companies with similar names. Obviously you want to be sure you’re looking at the right guys. A bad record is of course a problem but I would also consider no history at all to be a problem as well.

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

 

[oldminer]

Whe jewelers and appraisers say "Invest in diamonds", we are really saying "Spend your money for a diamond." It is a choice to buy a diamond, not an obligation. Do not expect to make money or even break even, ever.

In the financial world, "Investment" means placing your money in the control of someone else, with some variable degree of risk attached, in order to hopefully come away at a future time with more money or a continuiing income stream. This simply is not what jewelry or gems is all about. Of course, there are rare exceptions, but don''t forget there is very high risk or low probability of finding such an exception.

I have bought diamonds and made money on nearly all of them over a 40+ year period. I bought low and sold high in theory, but the reality was that I bought in a competitive way and sold to make some profit without taking years to get the capital back and working again. Turnover at small profits is much more effective than waiting until the bitter end for top dollar without good turnover. That''s reality.

Diamond buyers exist all over the place. I am sure there are places in Albuquerque and Las Cruces that pay immediately for diamonds. They buy low and sell for a profit to people they have relationships with. They may put some purchased diamonds into their inventory, too. The long cycle back to the consumer begins with the purchase from a consumer who is finished with the diamond.

You can always try to sell to another consumer first. Get a fresh appraisal, for current retail value, and post it on-line, like a Craigslist. Ask less and see who happens to respond to the ad. Make a deal knowing how much better you are doing than what a professional diamond buyer might have offered.

Also, don''t fall for the tactic of a surprisingly high bid by a professional diamond "buyer". They may be giving you a tempting amount verbally to lure you into sending the diamond for a look-see. Once they have it, they will give you a dose of reality and most folks cave in at that point and say, "send me the check". Many dealers will phrase their "offer" to you in the form of a question: Would you take $3,000 for this diamond? They are NOT offering $3K, they are asking to determine if you have any concept of the value or any desire to really sell. You should NOT reply "yes", but return their question with your own question, "Are you offering me $3,000 for this diamond?" They will just about faint at that point and you may be on the way to a reasonable offer. You are the sole judge of what is reasonable, but above this level you won''t sell the diamond to a pro.

There are thousands of tricky things buyers do to sellers. It isn''t a way one street. It takes two to make a deal, but you gotta get street smart......The buyers are already there.

 

[DLFB]

As a person who's been selling/buying online for a long time (and if you're thinking about on selling it privately ONLINE to anonymous buyers):

1. Research on the going/market price of your diamond

2. Deal safely especially on receiving the payment part. It's never a good idea to send money online but if you've done your homework you're fine. I do not recommend PAYPAL at all, but rather a wire transfer. Other methods you can tell the buyers are Money Orders,Checks or Western Union *if they're willing to

3. Keep all documentation including Emails

4. INSURE YOUR DIAMOND WHEN SHIPPING and have a TRACKING NUMBER+SIGNATURE CONFIRMATION

 

[honey22]

Ditto neat - that''s probably a better offer. You will not get anywhere near what you paid for it, nor the appraised price unfortunately. I would take the money and run.