Anybody’s Guess

A common occurrence in my shop is the question…

“Hey Rich, how much is my diamond (or ring) worth?All it usually takes is a quick eyeball,

SUBJECT… A recently purchased ladies “Mexican” silver agate ring. 

In a fraction of a second the picture is sent to my analytical brain that compares it to my memory data base of the fifty or sixty million diamonds, stone rings and all kinds of jewelry I’ve seen in my lifetime; calculate the current price of gold or silver, then compute the current economic state…Click, click, whirl, whirl then ding! … Mexican silver ring origin…Cancun, Mexico

Metal… 50% silver, 50 % questionable alloy (cheap metal).

Gemstone …ordinary inexpensive agate… $1.00 a shovel full.

Craftsmanship… Or lack of, mass produced, possibly Thailand or India.

Cost…$15.75 U.S wholesale.

Estimated cost at Mexican souvenir shop…$1,002.90 Mexican Pesos or $50 U.S. Dollars.

“Well, that can’t be right we paid much more than that!” 

Well, I fully expected to hear that, so be… it’s worth what you paid for it, consider it an expensive souvenir memento!

More often than not it’s usually a diamond ring that someone bought from a “friend” in the diamond business now covered in sun tan lotion and gunk from various food groups. It is much harder to “eyeball” so it’s anybody’s guess as to what the value is because it could be a worthless Cubic Zirconia or what appears to be very expensive rock (diamond).

It would be similar to evaluating or appraising an exotic automobile from a block away. Evaluating the value of an important size diamond involves a bit of time, experience, and know-how.

Which, by the way, is why there is generally a charge to perform a diamond appraisal service.

1. Cleaning it is the first step. Then an appraiser must go through what most every person has heard about to evaluate the cost; the famous four C’s… carat, color, clarity and cut.

2. What is the weight of the diamond? 

3. Next the appraiser must establish what the color of the diamond is - how white or not so white?

The Gemological Institute of America Gem Lab, known as G.I.A., scale of color begins at “D” the whitest diamond money can buy and the worse color ends at Z and that is more faint yellow or dark gray (not very desirable).  The most important diamond will come with a G.I.A. appraisal certificate.

4. It is then viewed under a 10X magnified loupe to examine it for its clarity imperfections, inclusions (AKA flaws). If the clarity is poor, like a piece of rock salt, the value of the diamond will be low. The G.I.A. scale will begin at IF internally flawless to I3…comparable to the clarity of the rock salt I before mentioned (again not very desirable). 

5. How well cut is the diamond? Is it perfectly round or square or it is too narrow, skinny, or chunky? Many large antique diamonds have inferior cuts due to the diamond cutting technology that was the norm during the early and late 1800’s. The cut is very important to give the diamond, regardless of the color and clarity, the optimum brilliance and scintillation (sparkle).

6. Other important information - although it is not really a factor in evaluating the diamond with the current market cost - is where and when was it purchased? I often ask this because quite often the current appraised or replacement value can be lower than the purchased price regardless of when it was purchased.  Huh, you ask?

This is where it can get hot and heavy. The simple fact is some folks just pay too much (aka “you got shafted”) for the quality of the diamond they received. A lot depends on the stores profit margin. If you purchased the rock in question at a fancy schmancy jewelry store that began with expensive champagne under crystal chandeliers on Italian marble floors and Turkish rugs; where the salespeople are wearing silk Armani suits and Gucci dresses sporting flawless coiffures and manicures; where the owner, “Roberto”, lives in a thirty room mansion on Naples Bay, and oh, by the way…that’s his new Ferrari parked out front, you can bet he did not acquire all that from giving his diamonds away at near cost!

Buying diamonds for a friend in the business on 52nd Street or on the Islands while on vacation is another red flag for me, because you are surely on your own on that purchase. 

So, no matter what story I hear on how great a deal one got on the diamond, when the diamond dust settles and all the factors are computed in my brain, it comes down to how much it costs you to match or replace the diamond you presented me to evaluate at the present time - the here and now.

It’s funny or sad; it all depends how one looks at it. I can’t count over the years how many “perfect blue-white diamonds!”I look at that aren’t remotely blue, white, or perfect. 

I can’t stress the fact enough the purchase of a large, beautiful diamond can be one of the most expensive purchases you make in your lifetime. You must have total trust in the jeweler; inquire to his integrity, honesty, and fairness before you plunk down the big bucks for that chunk of shiny carbon.

In closing, remember the old adage when asking the worth of something …Be careful what you ask for, you may not like the answer! 

Richard Alan is a designer/goldsmith and a purveyor of fine diamonds for over fifty years; he is the owner of The Harbor Goldsmith of Marco at the Island Plaza as well as island’s “go to jeweler” since 1994. He welcomes your questions and comments about “All That Glitters” www.harborgoldsmith.com, 239.394.9275.