When Diamonds Aren't Forever
Here are tips for auctioning off your gems
Do you have an old diamond ring you'd like to sell, or
some jewelry you've inherited that you'd like to
auction?
Increasingly, auctions--whether held in traditional
auction houses or online--are ways to easily reach an
audience of buyers.
But before you visit an auctioneer, there are several
steps that you should take to determine the value of
your diamond.
First, your item must be assessed by an appraiser.
That person will have the complex job of determining
the ring's value based not only on the 4Cs (the color,
clarity, cut, and carat weight) but also on the quality
of the workmanship. The appraiser can also
determine if it was made by a prominent maker, like
Tiffany & Co., for example.
"Only a trained eye can distinguish the difference in
stones once they are in settings, so an appraisal
accompanying a piece is an added incentive for the
buyer," says Joanna Brannock, a contributing editor
for jewelry at BiddersEdge.com
(www.biddersedge.com), an online portal to more
than 200 auction sites. Based on market value and
the condition of the stones, your diamonds may
appreciate or depreciate over time due to whether or
not the jewelry has been damaged, its rarity, or if it
has remained in its original condition.
After you have determined the value of your stone,
you must decide what medium you will use to sell it.
Christie's and Sotheby's are well-known auction
houses, however affected by the recent scandals
surrounding them.
"Usually with auctioneers, you can expect non-estate
pieces to get between a quarter to one-half of the
retail price it sold for when it was new," says James
V. Jolliff, executive director of the National Association
of Jewelry Appraisers (410-897-0889) in Annapolis,
Maryland.
Second, decide what type of audience you are looking
for. Would you like a mass audience, or do you
possess a unique piece of jewelry that you only want
to be considered by serious collectors?
If you are going to use online auction sites such as
eBay or Yahoo!, find out how pieces similar to yours
are listed and if the site receives a portion of the
sale. Although eBay allows you to register for free, it
charges 25 cents to $2 to list your diamond, and once
it is sold, their commission is about 5%, depending on
the final closing price.
"Make sure you are very descriptive in listing your
diamond, provide very good images, and be honest
about what you have," instructs Shira Levine, senior
manager of jewelry and gemstones for San Jose,
California-based eBay.
Before you auction your diamond, be sure that the
auction house has a means to "rate" the seller for
potential buyers, something both eBay and Yahoo!
have. "We have a feedback rating system where
buyers and sellers are given a point every time they
get positive feedback," explains Levine. Also, make
certain there are protection mechanisms, such as
insurance and escrow services, on the site. There
should also be a variety of payment systems, such as
Billpoint, an electronic payment service that eBay
makes available, which allows sellers to accept credit
cards or electronic checks, or PayPal.
"The important thing to remember is to educate and
inform yourself. Ask questions until you are
completely satisfied," advises Brannock.
CUT
More than any other quality, cut determines the fire
and brilliance of a diamond.
COLOR
A stone's beauty and value usually increase
dramatically the more colorless it is. The spectrum
ranges from light yellow, "Z," to totally colorless, "D."
CLARITY
It is possible to find some imperfections in almost
every diamond --inclusions--that affect a diamond's
value. Clarity grades range from "I" (imperfect) to
"FL" (flawless).
CARAT
Carat is the standard measure of a diamond's weight.
But size alone is almost meaningless unless you
consider cut, clarity, and color.
Appraisal Associations
* American Gem Society 8881 West Sahara Ave. Las
Vegas, NV 89117 702-255-6500; fax: 702-255-7420
www.ags.org
* American Society of Appraisers 555 Herndon
Parkway, Suite 125 Herndon, VA 20170
703-478-2228 or 800-272-8258 fax: 703-742-8471;
www.appraisers.org
* Appraisers Association of America Inc. 386 Park Ave.
So., Suite 2000 New York, NY 10016 212-889-5404;
fax: 212-889-5503 www.appraisersassoc.org
* International Society of Appraisers 16040
Christensen Rd., Suite 102 Seattle, WA 98188-2929
888-472-4732 or 206-241-0359 fax: 206-241-0436;
www.isa-appraisers.org
COPYRIGHT 2000 Earl G. Graves Publishing Co., Inc.
COPYRIGHT 2000 Gale Group
