Yikes! I Got JACKED! My Appraisal Says so. DAMS4E4

by Admin

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First in the News

  1. Reuters reports
    • Manufacturers who cut and polish diamonds have found themselves caught between giant mining companies charging high prices for rough stones, and big retail chains that demand gems at low margins to keep sales moving.
    • “Have you ever heard of a 20-year-old standing outside a store all night to buy jewellery?” Ernest Blom, president of the World Federation of Diamond Bourses, asked delegates at an industry conference at a Tel Aviv luxury hotel.
    • No major deposits have been discovered in about two decades. The miners say they are investing heavily to keep supplies coming.

What this means for you!

  • Prices dropping is some areas (reported by rappaport)
    • Rounds 1-1.49ct
      • G SI1
      • However in  SI2 all G and under in colors have dropped.
      • Want a K – M VVS to SI2 dropped here too (I know not many of you)
      • D IF to VVS2
      • EF IF
    • Rounds 1.5 – 1.99
      • Main Areas
        • I-M IF to SI2
        • FG SI2
        • D IF-VVS1
        • E IF
    • Rounds 2-2.99
      • SI2 all G and under in colors have dropped.
      • D IF-VVS1
      • E IF
    • Rounds 3-3.99
      • KLM VS to SI2

 

This means go get your deals! With the reduction of rough coming in – You will see an eventual turn around and I believe what could be a sharp increase in price.

Though DeBeers only handles 33% of the worlds mining production they have dropped their rough prices to polishers in India. This is only a small bandaid on the polishing industry.

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You may contact me through the speak pipe app to the right or call me at 803-792-1326 if you have questions or suggestions! How is the show doing? What do you think??

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Yikes! I got JACKED my appraiser says so?

Ok Ive been in California for a couple of months and being a Native who’s worked in the jewelry trade (in just about every capacity) gives me the awareness of many jewelers on the West Coast. So this has led to me visiting and staying in some of these stores for a day or longer! Wow! Lucky guy that I am!

Having been an appraiser in my past life has helped with a certain awareness of valuation that you don’t receive with gemological diplomas and training. Appraising is an art unto itself and though you strive for being unbiased, bias always creeps in. This is why many organizations suggest using an independent appraiser. The industry is fractured and most are grandfathered into the practice which is where a problem may arise between consumer and jeweler and appraiser. An appraiser should not act on the best interest of anyone and statements on an appraisal should arise as factual and indifferent to the individual and the seller. Of course we are human beings and I like you don’t like engaging with automatons so bias creeps in. Our feelings get involved and this is great but only when it affects value in a positive way (not higher or lower, were talking about defendable statements of value).

So here is the situation – I was spending time with a jeweler recently and she is a member of the American Gem Society. The American Gem Society (AGS) is the parent of the American Gem Society Laboratory(AGSL). I’ve spoken about the AGSL and there creation and use of the ASET for performance grading in other shows. This jeweler has been in the business for over 30 years and shes been a wholesale manufacturer, a trade repair shop and a full blown guild store during this time. Her knowledge is unmatched by any recent graduate or plain old jewelry / diamond salesperson out there! She is skillful at customer engagement and I overheard this in action!

A client called called about an item that she was going to pick up from being left for appraisal. She inquired about the value on the appraisal and the appraiser verbally disclosed the value assigned on the document. At this point the appraiser begins explaining the reason for the valuation, apparently a number much lower than the client had expected.

 

The problem occurs when the seller described the final sales price as “wholesale” and that most people pay about double that price. The appraiser then goes on to defend the method and mode of valuation (like kind, common market) which is very close to the final selling price (which was taxed at retail).

 

Rules

  1. Never believe a store that says you are buying at “Wholesale”
  2. If your appraisal for insurance matches or is very close to your purchase price – it probably is accurate.
  3. Always ask questions with your appraiser.
  4. Always ask questions with your jeweler.
  5. Never expect someone to give you a dollar for 50 cents.
    1. If you do then expect to be disappointed.

 

If you have any questions you may call me at 803-792-1326.

 

Do you have a different opinion? Do you have any advice? Do you disagree? Let me know! I would love to hear from you!

 

J.  Christopher Guritz

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