South Africa. The De Beers monopoly of 102 years has come to a close with the company's privatization. The new consortium held by the Oppenheimer family, Anglo America, plc (mining conglomerate) and Debswana (De Beers/Botswana joint-venture) will now compete in an ever-changing marketplace. First up is a plan to select those sightholders who can better market De Beers diamonds as a consumer brand, changing the traditional distribution channels.
The prospect of deals with producers (like Russia) and maintenance of stable rough pricing will be challenges facing the new company as well as their control of two-thirds of the world's diamond production.
China. With the new Chinese dominance of the cultured pearl market, the pricing of pearls has become trickier. Since the loss of native Japanese farm production, the Chinese have not only picked up the slack, but are producing huge quantities that now rival the original Japanese Akoya product. In fact, it is the same oyster being used in Chinese waters under the direction of Japanese experts. The pearls are grown at considerably less cost, then shipped to Japan for final processing where it becomes arguable who is the producing country.
So now, China is producing not only an assortment of freshwater pearls - from baroque to round, but saltwater pearls of all qualities, driving prices down as large quantities flood the market.
Saturday, September 1, 2001
A Case for the consistent appraisal - or "What would GIA Do?"
I am getting really tired of seeing "certified" diamonds and pre-sell appraisals that don't stack up to the long established standards of the Gemological Institute of America (GIA). Appraisers who advertise their Graduate Gemologists (G.G.) credentials should follow the rules they were taught, whether appraising for the manufacturer, jeweler or consumer.
Ideally, an appraisal is prepared for the owner of the jewelry, with accurate grading and a realistic value for insurance purposes. Nowadays though, jewelers - both traditional and internet, are relying more and more upon appraisals prepared in the interest of selling the item appraised.
These "pre-sale" appraisals are everywhere, even on modestly priced articles and are often supplied by the manufacturers. Don't get me wrong, I think up-front representation is great, (we started doing similar preliminary reports twenty years ago) but what I am seeing are reports which are more "jeweler friendly" than gemologically accurate. And the values attached tend to be consistently generous (at least compared to the values we follow).
Loose diamonds, too
The sale of loose diamonds on the other hand, usually involves no value - just grading, and that is where some very blatant misrepresentations have come into play.
Unfortunately, obtaining a pre-certified diamond doesn't guarantee you are getting what the paperwork says. We do a fair amount of appraisals involving verification of pre-existing reports where we check for authenticity and accuracy.
We have uncovered many instances of inaccurate grading if not downright fraud from world-recognized laboratories as well as look-alike "labs" offering bad reports on rice paper.
The remedy is to always have your purchase verified during the appraisal process. We examine the previous document and if discrepancies are found, point them out. In the case of GIA and AGS verification, we will reference the document on our appraisal.
In the event of significant discrepancies you do have recourse. Since the jeweler owes you the quality they represented (even if they didn't do the lab report) they must make good on your purchase. If you like the article but find it was misrepresented, you may elect to re-negotiate the sales price.
Either way, you don't have to live with a misinformed purchase. Jewelry is supposed to make you happy, isn't it?
Ideally, an appraisal is prepared for the owner of the jewelry, with accurate grading and a realistic value for insurance purposes. Nowadays though, jewelers - both traditional and internet, are relying more and more upon appraisals prepared in the interest of selling the item appraised.
These "pre-sale" appraisals are everywhere, even on modestly priced articles and are often supplied by the manufacturers. Don't get me wrong, I think up-front representation is great, (we started doing similar preliminary reports twenty years ago) but what I am seeing are reports which are more "jeweler friendly" than gemologically accurate. And the values attached tend to be consistently generous (at least compared to the values we follow).
Loose diamonds, too
The sale of loose diamonds on the other hand, usually involves no value - just grading, and that is where some very blatant misrepresentations have come into play.
Unfortunately, obtaining a pre-certified diamond doesn't guarantee you are getting what the paperwork says. We do a fair amount of appraisals involving verification of pre-existing reports where we check for authenticity and accuracy.
We have uncovered many instances of inaccurate grading if not downright fraud from world-recognized laboratories as well as look-alike "labs" offering bad reports on rice paper.
The remedy is to always have your purchase verified during the appraisal process. We examine the previous document and if discrepancies are found, point them out. In the case of GIA and AGS verification, we will reference the document on our appraisal.
In the event of significant discrepancies you do have recourse. Since the jeweler owes you the quality they represented (even if they didn't do the lab report) they must make good on your purchase. If you like the article but find it was misrepresented, you may elect to re-negotiate the sales price.
Either way, you don't have to live with a misinformed purchase. Jewelry is supposed to make you happy, isn't it?
Internet bargain or scam?
Yes. The problem is you don't know which until you check them out. We have had some very happy clients who purchased over the internet - and some very upset ones.
In one instance, the client received an appraisal which failed to clearly state that they were buying a clarity-enhanced (fracture-filled) diamond, and the value stated was three times higher than what was paid. The NGL appraisal placed the retail value close to what was paid with prominent disclosure of the enhancement process. On the other hand, we have verified many great purchases, especially when GIA or AGS was the certifying lab and everything checked out.
We have also seen a lot of misleading colored stone transactions on-line. The biggest area seems to be in the emerald market, where stones too light to pass as emerald are being sold as "Colombian emerald". True, they may be Colombian in origin, but cannot be gemologially classified as emerald if not at least medium-light in tone. On the other hand, many colored stones bought on-line price out significantly more than their transaction price - but remember, price is not the most important factor anyway. The best advice is to obtain a guaranteed refund if not satisfied.
In one instance, the client received an appraisal which failed to clearly state that they were buying a clarity-enhanced (fracture-filled) diamond, and the value stated was three times higher than what was paid. The NGL appraisal placed the retail value close to what was paid with prominent disclosure of the enhancement process. On the other hand, we have verified many great purchases, especially when GIA or AGS was the certifying lab and everything checked out.
We have also seen a lot of misleading colored stone transactions on-line. The biggest area seems to be in the emerald market, where stones too light to pass as emerald are being sold as "Colombian emerald". True, they may be Colombian in origin, but cannot be gemologially classified as emerald if not at least medium-light in tone. On the other hand, many colored stones bought on-line price out significantly more than their transaction price - but remember, price is not the most important factor anyway. The best advice is to obtain a guaranteed refund if not satisfied.
Bogus Diamond Certifiates
In the past several months we have seen a definite increase in the amount of false diamond certifications. The most typical scenario is where the client has papers stating an "E" color grade on a diamond that we grade as an H or I. This is far beyond the realm for professional disagreement. Since the transaction prices tend to reflect the true grade of the diamond, it's obvious that the dealers aren't selling below their cost, just utilizing false documents to help make a sale.
One recognized lab out of Israel, is a re-occurring culprit in the above story, but others with names that only look familiar are cranking out official looking certificates that bear little resemblance to the diamond described. Since some of these certificates often look like GIA documentation, we have been working with them to investigate further.
One recognized lab out of Israel, is a re-occurring culprit in the above story, but others with names that only look familiar are cranking out official looking certificates that bear little resemblance to the diamond described. Since some of these certificates often look like GIA documentation, we have been working with them to investigate further.
Appraising for Estates
Estate appraising follows the same descriptive format as for an insurance appraisal, with the vital exception in the value referenced. With tax implications and possible heir distributions, an estate value varies radically from the retail value and is dependent upon a number of factors.
When appraising estates, a fair market value is used which considers the secondary markets available for the article, its condition and marketability. There is no standard correlation between retail and fair market. One item may auction at a much higher value than an item that appears similar because of its vintage or manufacturer. An article may only have scrap value because of condition. These important factors take an expert in estate appraising to determine, especially in the case of vintage/antique markets, watches and colored gemstones.
Upon your needs and the instructions of your attorney, we can advise you on what should be appraised and give full documentation that will hold up for the Probate Court and Internal Revenue Service. An NGL appraisal should also negate the need for two appraisals when parties are in conflict. We use the same legal parameters regardless of client, so there is no such thing as "high" and "low" appraisals.
When appraising estates, a fair market value is used which considers the secondary markets available for the article, its condition and marketability. There is no standard correlation between retail and fair market. One item may auction at a much higher value than an item that appears similar because of its vintage or manufacturer. An article may only have scrap value because of condition. These important factors take an expert in estate appraising to determine, especially in the case of vintage/antique markets, watches and colored gemstones.
Upon your needs and the instructions of your attorney, we can advise you on what should be appraised and give full documentation that will hold up for the Probate Court and Internal Revenue Service. An NGL appraisal should also negate the need for two appraisals when parties are in conflict. We use the same legal parameters regardless of client, so there is no such thing as "high" and "low" appraisals.
