Milking the Newspaper Classifieds

Seven days of the week, 365 days of the year, local newspaper carries classified ads, which, among other things, are with reference to sale of jewelry. Some of the people who place these ads in the Classifieds can be classified as totally desperate guys who will take almost anything that sounds reasonable (to them), while the others are those who are not ready to be the least bit reasonable, who think they have, like, forever to sell their stuff and will not take a dime less than what they think is the price they should get. However, the twist in the tale is that neither of these two kinds of people have any idea about anything I have mentioned in GemsNY  blog till now.

Anyway, your job is to find the jackpot and pounce on it before someone else does. Lets get started and see a couple of classifieds

The first thing that strikes as a good buy is the second from the bottom one on the left side. This guy claims he’s got a 2.05 ct, J in color, SI-2 diamond. Now that’s around $6,000 on the dump value table, and he’s selling it for $3,300. So either he’s a fool, or he is sexing up the grades. Even if we say it’s a 2 ct diamond, K in color and I-2 in clarity, it’s worth $4,200 which leaves us a margin of about a thousand dollars. I say it’s worth a try.

Here we have the newspaper cutout again. We will be doing the last one - fourth from top on the right side, the one which goes ‘Must sacrifice….’. Notice that he doesn’t say that the thing cost him $6,800. He just gives the number, so it doesn’t mean s**t to us. He doesn’t even give the grades, but from our table, we can see that his asking price does not hit dump value unless it’s a VS-1, G in color or better. But this one’s a little wise – he says OBO which means ‘or best offer’. So call him up, ask for the grades and if it’s lower than what I said, tell him he is dreaming. Then, from there, proceed according to the way he replies. The important thing to remember here is that this guy might really be desperate, even though he does not show it. So, the worst thing to do is to lose patience, say stupid things and jeopardize your side of the bargain. You never know – he might actually call you back and accept your offer!

So you have an idea or two about who is worth the effort. Now for the effort itself - I will tell you the exact things you need to ask the seller when you call him up. Keep your calculator and the dump value tables by your side when you do that. Here are the questions you must ask the seller -

1. The obvious – is the jewelry still available? If not, next one, please!
2. What are the weight and the color and quality grades of the diamond (if he knows them)? A quick marker – diamonds of clarity I-1 or below or color M or lower are commercial grade and are to be avoided – there are too many of them. You won’t be able to sell them even at dump value.
3. What is the shape of the stone? Apparently, round ones are the most popular, and so, the easiest to sell.
4. Does he have lab certificates for the diamonds? Certifications are given by the Gemological Institute of America (GIA), the European Gem Laboratory (EGL) and the International Gem Institute (IGI) and certified stones happen to be more accurately graded than others.
5. Is the price negotiable? As he speaks, look up the dump value and if his price is above it and not negotiable, don’t waste any more time – go to the next one. If negotiable, offer 20% short of dump and be ready to accept 15% to 10% below dump. Don’t forget to mention that all this is conditional to the appraisal.
6. How old are the diamonds? There are these ‘Old European’ or ‘Old Mine’ cuts that were made in the days when the technology was lousy and cutters sacrificed brilliance and sparkle in favor of weight. So these will be worth less.
7. Now that you have seen the dump charts, make your decision. If the value offered is below dump, you can continue.
8. When is the seller ready to see an appraiser? According to his availability, set up an appointment with an appraiser.

The first conversation is over. Now you go to the appraiser and tell him to appraise every diamond just like I explained previously in my blog post What to expect from a Diamond Appraiser. You need to have:

1. Most importantly - the weight, the color and clarity grades.
2. If the diamond is well proportioned or not.
3. Its Rapaport or wholesale value.
4. The plot of the diamond.

With these in mind, calculate the dump price and offer 10% to 20% less. If he agrees, excellent! Our mission is a success.