What’s Trust Got to Do With It? A Jewelry Repair Tutorial

It is inevitable, at some point your ring or jewelry will need service.  You’ve heard the stories perpetuated by the media: stone switching, shoddy repairs, and outright loss when people leave their jewelry for repair.  Like most things with the media, reports are exaggerated.  BUT, there are a few things you can do to make sure you don’t get taken advantage of, and make sure you get your jewelry back in one piece.

Here’s what you should know:

1. Choose a reputable jeweler for the repair.  Ask around for a glowing recommendation from friends, family, and people you trust.  If you really don’t know a local jeweler, check out the American Gem Society websitefor a referral.  The AGS is a jewelry non-profit trade organization that was founded to promote high ethical standards among jewelers, and member jewelers have to subscribe to rigorous standards and be tested each year on their knowledge and service.  There are AGS Certified Jewelers in most markets in the US.
2. Insist that they use a Take-In Form, and get your own copy/receipt.  The actual form will vary from jeweler to jeweler, but all should have the same basic information: your contact info; a description of the item; a precise description of the work to be done; an estimate for the cost of the repair; and A REPLACEMENT VALUE FOR THE JEWELRY ITEM that you both agree on.  This information protects all parties.  
3. Get a good faith estimate on the repair work.  Writing “Fix” on the repair envelope does not count as a good repair description.  If your diamond fell out and you need your ring sized, then the description of the work should read something like “reset enclosed clear stone, re-tip 3 prongs, and size up to a size 6+”.  You should get some sort of estimate, even if it’s a ballpark figure, in writing on your receipt.  Or if it’s very elaborate, you can ask that they call you with an exact figure before they proceed with the work.  Most jewelers will do a free estimate, so if you decide not to go ahead, there should be no charge to you (there are exceptions to that, especially if they have to ship it somewhere to get the estimate). 
4. Get a complete description of your jewelry on the Take-In Form.  Don’t be offended if the jeweler uses terms like “1 green square cut center stone with 6 clear accent stones in yellow colored mounting stamped 18k”.  You may know that this is your Aunt Harriet’s heirloom Colombian Emerald ring, but the jeweler doesn’t probably have the time or lab equipment necessary at take-in to determine the exact mineral content of the gems you are leaving.  Experienced professional jewelers usually use general color terms to describe it (if they describe it as an Emerald, and it turns out to be glass, they don’t want to be liable for replacing the essentially worthless glass with a $10,000 emerald).  But the color, size, shape and number of gems should be noted along with metal stamps, engravings, and any other distinguishing marks.
5. Have the jeweler show you specific characteristics of your jewelry so that you can identify it when you get it back.  The jeweler can map out your diamond’s inclusions (or lack of) so that you can both check them when you get it back.  They can show you your sapphire next to one in their showcase to accurately describe the color.  The point is for you to BOTH scrutinize your jewelry so that you know what to look for when you get it back. 
6. Agree on a replacement value.  This is part of the take-in form and a good jeweler will want that filled in.  It limits their liability, too, in case there would be a loss.  Take in an appraisal if you have one, or a receipt.  Even if the value is out of date, it’s a good starting point for the discussion.  If you really have no idea, then they can show you items they have in stock most similar to your jewelry to figure out a value.  Make sure you agree and sign off on it.
7. Trust your gut.  Make sure you feel confortable with the store and salesperson before you walk out of the store.  If something doesn’t feel right, or the jeweler doesn’t follow the above points, take your jewelry and walk away.

I hope this information is useful and helps to put your mind at ease when you leave your precious jewelry for repair!

Comment if you have any other suggestions or horror stories–we can all learn from them!

Example of Jewelry Repair Take In Form

How Do I Sell My Jewelry?

I have been asked this question a number of times in my career, and it always makes my heart squeeze a little.  There are many different scenarios where people might need to sell jewelry.  Maybe the engagement or marriage didn’t work out, sometimes there are financial hardships, or maybe someone inherited Aunt Harriet’s ring and just won’t wear it. 

This scenario exposes a dirty little secret of the jewelry industry–there is no secondary market to speak of.  The jewelers who work so hard to sell you something in happy times aren’t really set up to help you if things don’t work out.  This makes a difficult situation even harder. 

The first thing you should know is that YOU WILL NOT GET BACK WHAT YOU PAID FOR YOUR JEWELRY.  There are a number of reasons for this.  If you sell it to someone in the industry, they can buy it wholesale and are in the business to make a profit.  Jewelers can carry large in-house inventories on memorandum, where they only pay the dealer for it if they sell it.  If they do buy something, they can get 30, 60, 90 day terms to pay for it.  Or they can make a cash purchase for a percentage off the wholesale price.  To buy it from an individual, they have to pay you outright, take a fair amount of risk that the item is what they think it is (mountings can hide a lot of flaws), and hope they can turn it in the future.  If you sell it yourself to an individual, you need to make the price compelling enough for someone to pay you cash instead of financing it through a jeweler.  Keep in mind, too, that you may need to unmount diamonds and gemstones and put them into simple settings that appeal to most people.

In general, there is a direct relationship between the amount of time you are willing to wait and the amount of money you will net for the jewelry.  The faster you want to liquidate, the less you will get for the item.  I have compiled a list of possible options and the impact this makes on how much you will get.  I have listed the following options in the approximate order of least amount of time and effort on the seller’s part to more time/effort, but possibly greater return:

$ Pawn Shop/Jewelry Liquidator:  In general, this is the option of last resort.  You will get–maybe–10 to 20 cents on the dollar for what you originally paid if the item has more value in the labor, such as a cluster ring with a lot of gold.  You may net more if the item has a solitaire diamond at least 1/3 to 1/2 carat.  The pawn shop or liquidator is going to turn it very quickly for a little more than they paid for it (way below market value), which is why the price is so low.  But it’s very fast–in the case of a pawn shop you will walk out with cash/check in hand.  In the case of an on-line liquidator, such as Thingswebuy.com, you contact them on-line, they Fed Ex you a box/package, and they will let you know as soon as they receive it what their offer is.  A company that I have heard of that might be good for more important jewelry items is Circa, they have offices in several major US cities.  Not sure how much they sell, but there is also an entertaining little site called exboyfriendjewelry.com to check out.  Note: I have not personally vetted this or any other on-line liquidator/buyer, so I cannot fully endorse.  Do your homework and proceed with caution.

$$  Consign through a physical jeweler:  This could be through the jeweler you originally purchased it from, or another store in the community.  There should be a written agreement about how long they will have it in the case, the price they will try and get for it, the amount you will net from the sale, and the appraised value if anything should happen to it while in their possession.  This option can take an extremely long time: how motivated is the jeweler to sell your item, versus their own inventory that represents a major capital investment?  But the amount that you net might be closer to what you paid for it, especially if you bought it from that jeweler and they are compassionate about the situation.   

$$$  Sell it yourself:  This option probably makes some people’s palms sweaty.  It is not for the faint of heart, but this is the way you can get closer to your purchase price. 

1. The first possible audience is someone you know who might be interested: friends, family, colleagues, etc.
2. I do not recommend a newspaper ad.  It is expensive, no one reads ads anymore, and it could attract the crazees. 
3. Craigslist.  This is a totally viable option, but probably only if you live somewhere there is an active local site.  Craigslist is easy, it’s free, and it’s local.  If you have paperwork, such as a diamond lab grading report or an appraisal, list as many details from it as you can.  Try to take a good photo, it’s easy to upload.  Price it well–you need to make it enticing to buy it from you versus a jeweler (jewelers offer less risk, return policies, financing, etc.).  If you paid $5,000, price it at $3500 or 4000–it will be a good deal for the buyer and that’s a pretty good price to get back out of it.  If you really want to sell it and be done with it, 1/2 of the price you paid (NOT a fictitious appraisal value) is very compelling.  If you find someone who is interested in seeing it, my recommendation would be to meet at a bank.  It’s a public place, security is all around, you can show the item to the potential buyer (hey, you could even pull it from the safety deposit boxes there if the bank has them, further reducing your security risk), and if the interested party decides to buy it, you can verify their certified check funds before they leave with the jewelry.
4. eBay:  This option is trickier (and worthy of its own blog).  Going through the listing process if you’ve never sold on eBay before is not trivial.  There are listing and selling fees that can add up.  You are also competing against semi-professional dealers with slick offerings.  But you can get your item in front of a large potential audience who is actively looking for jewelry.  There are 2 options for eBay, auctions and Buy It Now.  Auctions are still their bread and butter.  They recommend starting the bidding low with no reserve, but if you really can’t go below a certain price, you can set a reserve price (for instance, you paid $5000 for a solitaire diamond ring, you want to get at least $2500 for it, so you can start the auction at $1000 but set a reserve of $2500).  Definitely go for a longer auction, 7-10 days.  You can also set a Buy It Now price that represents a fair value.  There is a TON of fraud on eBay, so what I recommend is using an escrow service to hold the funds until the buyer has a chance to view the jewelry.  

$$$$ Trade It In:  If you can trade in your jewelry, you will probably get the most value possible for very little exertion on your part.  For instance, if you bought an engagement ring for $5000 and things didn’t work out, maybe you want a Rolex for yourself.  Or perhaps you could hold onto it until you decide to get engaged again, and trade it for a larger, finer diamond.  You might even get the full amount the jewelry is worth if the item you’re trading for is for more money.  Even if you didn’t buy the original item there, if it’s a salable piece, a jeweler has more incentive to do this than the consignment route.  Again, you’re taking some loss in that you are not getting full value back in hand, but that is the reality of the situation. 

Jewelry DOES have lasting value, it can always be reduced to its precious materials and the value measured out.  The unique thing about jewelry is that the emotional significance behind it is harder to calculate.  Only you know what your jewelry is really worth. 

Have you ever had to sell a piece of jewelry?  What was your experience?  Please comment and share your story!

Virtual Purchase: 1 Carat Round Diamond

Several times a month, I am going to do a “virtual purchase” of a piece of jewelry.  I will  articulate a jewelry purchase scenario, and go through the decision-making process of what, how and where I choose to “purchase” the item.

What:  This week I am looking for a 1.00 carat round diamond, loose.  My “customer” wants the nicest quality he can afford, but won’t go below 1.00 carat weight.  I am only going to look at diamonds with an AGS or GIA certificate so there is some confidence that I will get the diamond quality I’m expecting. 

Where: I am going to shop online at Blue Nile, Amazon.com, Diamond.com, and Union Diamond.

(The Gold Standard) Blue Nile:  I go to Blue Nile first.  I do a search for loose diamonds that can be mounted by a specific date (if you are more flexible on date, there are more results), 0.90 to 1.15 carat, Very Good Cut or better, I Color or better, SI2 Clarity or better.  There are 246 diamonds in my search result.  Now it’s time to refine.   I review this primer on diamond quality 4 Cs, so I know that cut is important.  I sort for that and find that only 2 of the 215 diamonds are Very Good Cut, the rest are Ideal or Signature Ideal.

I know that color is also important, so I sort for that next, high to low.  I decide that a D or E color, while beautiful, are much more expensive than the equally gorgeous F and G color, and that VS2 to SI1 clarity seems like a nice range.  So I check the compare boxes next to a few combinations of F and G color, VS2 and SI1 clarity, Very Good, Ideal and Signature Ideal cut, and hit the ”Compare” button at the top of the column.  It opens a new page with the diamonds listed side-by-side in a neat comparison format. 

I remove 3 diamonds right off the bat, due to medium to strong blue Fluorescence.  It doesn’t really affect beauty that much in faint to medium (and may make the diamond more attractively priced), but while it might actually help me out if I were purchasing an I or J (or lower) color, in a premium color diamond, it’s not that desirable.  The diamonds that are left range from $5300 to $8800–kind of a big price spread.  I rule out the 2 highest priced diamonds (over $8000), mainly because there is nothing significantly better about them than the others.  Wearing my Gemologist hat, I scrutinize the numbers for a while.  I ultimately choose a 1.09 ct F, SI1, Signature Ideal for $6783.  What tips me this direction is that it has a 60% depth percentage with a 56% table, so its diameter is going to appear slightly larger than the other top contender at 62% depth/55% table.  The actual diameter measurement is also slightly larger, but I know I’m not sacrificing beauty for that, because it’s a Signature Ideal cut with the certificates to show for it.  It wasn’t the cheapest, but it was right in the middle of the pack ($5300 low to $7600 high).

(The Mighty) Amazon.com: Now that I have a more precise picture of what I’m looking for, I head to Amazon.com (is there anything they don’t sell now?).  As an Amazon.com insider (see here to read more), I know that Amazon tries to be the lowest price in loose diamonds whenever they can.  At Amazon’s site, you can find their loose diamond/Create Your Own Diamond Ring selection on their Jewelry gateway page, or by clicking here. 

I adjust the sliders to find diamonds in the same quality range I used for Blue Nile, with a price cap of $10,000.  I figure out (through trial and error) that Amazon’s slider is not as sensitive as Blue Nile’s so I have to move the slider up to 1.25 ct in order to get diamonds over 1.00.  I get 631 results.  Their compare feature does not have the same level of detail as BN’s–there are no measurements or girdle thickness, you have to click through to the detail page for each stone to find out those details.

I found a great 1.08 F, SI1 ”Ideal” cut (meaning that the table and depth percentages fit into the Ideal range), that looked like a great value at $5775.  But closer inspection revealed that it said “Very Good” under the Polish and Symmetry comments, so it’s not technically the same as the Signature Cut Ideal from Blue Nile.  But if you weren’t so picky about that, it would be a great value.  Since the G, VS2 combination was $1000 more, I stuck with the F, SI1 quality combination.  The final diamond at Amazon that is most comparable to the BN diamond is a 1.07 ct F, SI1, Ideal cut for $6610.  I like the 55% table/61% depth combination, and it’s diameter is 6.6 mm, similar to the BN diameter of 6.7 mm.  If I wanted about the same factors, but was willing to go down in size slightly to 1.00 ct exactly, Amazon had a nice diamond for $5940, but the diameter is slightly smaller at 6.46 mm.   

(Disappointing) Diamond.com:  I couldn’t find a great comp at Diamond.com.  The closest I could find was a 1.03 ct, F, SI1, Ideal cut for $5908.  It is not as large, and had medium blue Fluorescence, which I rejected at the other companies.  The selection was dismal, maybe 4 diamonds that were even close.

(The Darkhorse Surprise) Union Diamond: Union Diamond seems to come up a lot in search engines, so I checked them out, too.  Closest comparable diamond: a very nice 1.06 ct, F, SI1, AGS-certified Ideal cut for $6435.  If it is as nice as the website says, it’s one of the best values I came across, especially if the company could verify if the AGS certificate identifies the diamond as a “000″ Ideal (Ideal proportions, Polish and Symmetry).  The only drawback is that I’m not as familiar with the company, so I can’t give a full endorsement without ordering something.

Final Diamond Virtual Purchase:the 1.07 ct F, SI1, Ideal from Amazon.com.  While any of my top three diamonds (my top pick from BN, Amazon.com and Union) would have been incredibly brilliant, I like the value proposition of the price in the middle ($6435 from Union Diamond, $6610 from Amazon, $6783 from BN), PLUS the safety/reputation of Amazon.com.  If I get some personal experience with Union, or hear from someone who has, then I might go with that option.

Bottom Line:  With certified diamonds, you can–in theory–easily compare all the factors online and then buy something that should be a beautiful diamond.  The reality is that it’s pretty confusing trying to sort through literally hundreds, even thousands of similar diamonds that all have tiny differences that seem to affect value significantly.  It’s important to remember that although it seems like there are so many details to consider, at some point it’s splitting hairs–if you are staying in a quality range of Very Good Cut, I color, SI2 and better, you will end up with a gem with plenty of sparkle.  I chose an Ideal, F color, SI1 as a gorgeous diamond quality with an excellent value proposition.  A lot of people think that a G, VS2 combination is an ideal engagement ring, but most of those diamonds were $1000 or more for that quality combo, and I prefer the higher color–you can’t see the difference in clarity at all from VS2 to SI1.

Of course, if you go to a reputable jeweler in your area, you could compare several qualities and see for yourself if there is a difference worth paying for.

Cellini Asscher Cut Diamond Ring

Santa, I think you forgot this…

Regards,

platinumgirl

PS: I have been VERY good this year

Updated 4/9/2009:  Considering how much traffic this page gets (a LOT), I thought I should get some more information about these rings. 

I spoke to Danielle at the Cellini store in the Hotel Waldorf-Astoria in NYC (Cellini also has a store at 509 Madison Ave).  She said that the images of the rings are representative of what they can do with a diamond from their inventory or your own diamond.  OK, maybe not just ANY stone, the mountings work best with the shapes shown, a square Emerald cut or Oval.  Also, the center stone should be at least 3 carats, in order for the mounting to be proportionate.  It might just be too much metal with a stone smaller than 3 carats (see my post about Asscher cut diamonds here, there are some nice pave settings for diamonds smaller than 3 carats).  The retail for the setting is around $9500 in platinum.  A 3 carat Asscher or Oval shape around G color, VS2 clarity (my choice for best quality combination) will run around $35,000.  Cellini would be happy to help you find the right diamond, of course.  For what it’s worth, Danielle said that as beautiful as the photo is, the rings are really much prettier in person, she recommends trying one on if you’re ever in NYC.  

If you like this style, but you’re interested in a different shape of center diamond, you can check out their Spring 2008 catalog, there is another version on the cover of this catalog that could work for a Cushion or other shape center.  Click here to download.

Here’s a link to Cellini’s website, or call the very lovely Danielle at 212-751-9824.

Wouldn’t it be great to shop at the Jewelry (Un)Store?

If someone I know needed jewelry, here is where I wish I could send them:

It’s a nice store, in a good location.  Not fancy–just comfortable and accessible.  A (non)salesperson greets you in a low-key way and allows you to look around unaccosted.  There are cases of jewelry displayed with TAGS VISIBLE, so you can see prices and details without having to ask for it.  There are easy-to-use computer kiosks where you can see additional items that aren’t physically displayed.  If you want to take a look at something and ask some questions, there are comfortable places to sit and talk with a (non)salesperson.  Maybe they offer you something to drink. 

The (non)salesperson is knowledgeable and friendly, without trying to stick something down your throat.  They tell you what their margins are, and shows you their items versus similar items online, so you know you are getting a good price.  They are absolutely no-pressure in their approach: they know they have great jewelry at great prices, and trust that if you are given honest, transparent information, you will make a great choice.

I wish I could say that a store like this exists.  If it does, I haven’t found it yet.  The Jewelry Industry in particular seems to cling to the old model of making purchasing information as opaque as possible, and they force you to interact with someone. 

Maybe in my spare time, I will open a store like this.