Well, that diamond ring at 50 percent off can still give the jeweler a 100 percent profit. And those earrings at $2,500 may have cost the jeweler only a grand.
So the ring you bought 10 years ago may have cost the jeweler $2,000 to $2,500. Meanwhile, that $8,200 appraisal has as much value as an Elvis on velvet. And I suspect that the jeweler probably would give you an appraisal for $9,000 if you asked for it.
The jeweler who offered you $1,450 for the ring might wholesale the piece or list it for sale in his inventory at a significantly higher price. Be mindful that when we pilgrims purchase jewelry, we always pay retail and that when we must sell, we always sell well below wholesale.
There is no published pricing manual for diamonds as there is for, say, stamps.
The phrase “a diamond is forever” is a clever campaign by De Beers, subtly discouraging you from selling your stone and encouraging you to pass it on as an heirloom. This frequently repeated mantra has succeeded in keeping many diamonds off the market.
Can you imagine what would happen to the price of diamonds if just 10 percent of the public that bought diamonds during the past 20 years decided to sell them this year? The market wouldn't be able to handle the onslaught; prices would collapse; and De Beers might be out of business.
When you decide to sell your ring, take it to three different jewelers. I guarantee that you will receive three widely different prices. And don't be surprised if $1,450 is the highest offer you get.
Please address your financial questions to Malcolm Berko, P.O. Box 8303, Largo, FL 33775, or email him at email@example.com.