We encourage jewelry buyers to be suspicious of drastic price reductions ("50% OFF!" some stores advertise) and of appraisal documents, supplied by the seller, which "prove" the piece is worth more than the sale price. Usually such jewelry is worth about what it's selling for
I totally agree with this! I also want to add that 'certs' are not appraisals and in-house appraisals done by non-GGs are usually worthless sales tools.
DH & I have been shopping for a new diamond ring to upgrade my existing one. (I did find one - pics to follow once I have it back from being sized)
While shopping we noticed the appraised value of the rings are often significantly more than the actual selling price.
How can they sell for so much less? Are they trying to mislead the consumer with the appraised value and make us think we're getting this great deal when we're really not?
I'd love some insight!
What you should really be scared of is how much less they RESELL for if you go to sell them in the future. DH just talked to a man who tried to sell a 2+ carat, VS1, H color stone in the diamond district and they offered him $3-$4k for it.
When it comes to jewelry, there are 2 types of appraisals - an appraisal for insurance purposes and an appraisal for resale value. An appraisal for insurance purchases will be considerably more than one for resale value. The insurance appraisal is approximately how much it would cost you to buy the piece of jewelry again, at retail prices. The resale value is how much you personally would get for the diamond if trying to sell it to an individual or sell it to a jewelry reseller. Diamonds are not a good investment in terms of resale value, unless being used to trade up for another purchase at the same store you're buying a new item at, as the jewelry store is making money off you with new purchase you're making.
I know! Some lucky girl is going to get a great rock and the guy made out like a bandit. I considered getting it, but I'm not the biggest fan of emerald cuts and it was smaller than what I would prefer at this point.