Author Topic: value of diamond ring ?  (Read 2296 times)

Offline surfivor

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value of diamond ring ?
« on: September 12, 2012, 11:43:18 PM »
 A friend of mine needs some money. I have her diamond ring for safe keeping and she had said she wanted to use that for collateral. I went to a jeweler in the area. The guy looked at it with a magnifying glass, weighed it, and looked in some charts.

What he said was when it was originally purchased it may have been worth $1500 or $2000, but now it might be worth $400 or $500. He seemed to explain that some of the value of a ring is in setting the diamond and the manufacture of the ring, I forget all the technical jargon he used to explain that. I think he said it was an invisible setting and that maybe that style is not popular anymore, I'm not sure. I told him she seems to claim it is worth $3700 or so. He said it was possible it could have sold for that much when it was new. I guess he said it was also 14k gold. He said he wasn't interested in buying it while saying something about it being an invisible setting. He suggested I get another opinion.

 I guess part of the thing as well is trying to find someone who would buy it if you wanted to sell it.

 What the jeweler told me seemed consistent with a neighbor of mine who said diamond rings can lose the value you paid for them; my mother however didn't understand that, and I am not sure I fully get that either ?

 My mother looked at it and didn't think it looked like an expensive ring because she said the gold part looked cheaper.

 I'm just posting this here to see what others might have to say about this kind of thing.

Offline TexDaddy

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Re: value of diamond ring ?
« Reply #1 on: September 13, 2012, 12:45:42 AM »
Much of the value of a ring of any type is fashion. If a ring design has gone out of style, the value of the ring is reduced to the value of the component parts as scrap.

Depending on the weight of the gold in the ring, the gold currently may be worth in the neighborhood of $90-100 or so.

The value of diamonds depend on so many things such as weight, cut, color, clarity, number of inclusions and the current market.

Retail jewelry carries a tremendous mark up. For a ring one might pay $4000 for, the dealer paid around maybe half that. Investments, they are not.

Do get the second opinion suggested by the dealer you went to. Do not be shocked if the second opinion is close to the first.

Offline Vulcan

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Re: value of diamond ring ?
« Reply #2 on: September 13, 2012, 02:46:00 AM »
Don't ever tell a professional what something is worth, it makes them resent you.

Offline PorcupineKate

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Re: value of diamond ring ?
« Reply #3 on: September 13, 2012, 06:57:46 AM »
I used to be a jeweler and a gemologist.   Some diamonds do continually go up in value.  These tend to cost as much as a new house to begin with.   Large sized very high quality diamonds over 3cts can be resold for more than you paid assuming you got a great price on it.  The mark up (10-20%) on very high quality large diamonds is lower than piece with a lot of little diamonds in it (100 to 200%).  (You can thank the internet for for lowering the mark up on larger diamonds)  Of course if you bought your diamond in the late 70s to early  80s you got hosed.  The mark up on diamonds then was insane.

One reason the Jeweler said the ring wasn't worth as much is the invisible setting.  This style of ring is really difficult to manufacture.  Each of the diamonds has groves cut on the underside of the stone so the stones can be set on rails from the underside.  This is style is lower cost in materials and very high in labor to make.

You can't reset invisible diamonds into a new piece of jewelry due to the groves cut in the diamonds.  This also affects the resale value.  Invisible set diamonds can become loose or fall out if you re size the ring.  Since this style of ring is not as popular as it used to be and a jeweler can't really reuse the parts of it the resale value is even lower.

If this was done by high end manufacture like Cartier or Tiffany & co it would have a much better resale because it would have collector value.

Offline LvsChant

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Re: value of diamond ring ?
« Reply #4 on: September 13, 2012, 08:20:56 AM »
+1 PorcupineKate for sharing that information. I had no idea about that...