They cause more headaches, disagreements, and misunderstanding than any other aspect of the diamond trade: Diamond appraisals. These ‘official’ documents aren’t worth the discount office paper they’re printed on and serve no practical purpose except to hurt, confuse, and manipulate consumers like you.
BEFORE YOU READ: keep in mind that none of this is your fault. As you’re about to discover, diamond appraisers are master deceivers so consumers can’t be blamed for buying into this system. But once you’ve learned how these guys operate, you’ll put your diamond appraisal through the shredder and never look back.
Diamond appraisals are meaningless to dealers, jewelers, miners, and anyone else who works in the industry. It’s an undisputed fact among diamond pros.
Your diamond is only worth what someone will pay for it and no diamond buyer on the planet can afford to pay Appraisal Prices. Even retail prices (10X-20X wholesale pricing) are nowhere near appraisal prices.
So, if true professionals don’t accept them, why do diamond appraisals exist in the first place? Like so many aspects of the diamond trade, appraisals are just another way to deceive consumers.
That sound melodramatic to you? Keep reading.
The world’s foremost authority on diamonds is the Gemological Institute of America. Many consider GIA the only entity capable of officially grading and certifying diamonds.
In contrast to GIA (an international corporation that uses world-class experts, state of the art technology, and standard-setting techniques) most diamond appraisers invest more in back hair removal than cutting edge grading technologies.
Professional as always, the GIA never assigns diamond value because they know it’s impossible to definitively determine. Less professional and less reputation-concerned companies will price diamonds but, with zero regulation, these guys are more influenced by what they had for lunch than important details like your diamond’s table percentage or its fluorescence.
In other words, diamond appraisals mean nothing because appraisers aren’t bound by any standards (or ethics).
Want a high-dollar appraisal for a less-than-remarkable stone? Just let your appraiser know and they might just throw some extra zeros on there for you. (Seriously, it happens.)
Ever seen a jewelry store ad touting something along the lines of, “Prices so low, we guarantee your diamond will appraise for double?”
What they aren’t telling you is that any diamond purchased from any store will appraise for double its retail price. These clever marketers know appraisal prices are inflated and they’re betting you don’t.
It’s all a big scheme to trick you into thinking you’ve scored a great deal on your $11K .75 carat marquis. That’s why, for jewelry stores, appraisals are just another way to trick you into paying too much for diamonds.
In theory, diamond appraisals do have a purpose: insurance.
Like most people, you probably keep your jewelry protected with an insurance policy. Appraisers are supposed to provide the fair market value of your diamond so that, in the event of theft or loss, your insurance company pays enough to replace it.
But since appraisals are so out of whack, you end up insuring your ring for way more than what’s needed. Basically, you’re driving a Honda Civic while paying the insurance premiums of a Pagani Zonda.
Yet unlike cars, most people never file insurance claims for diamonds. And these policies can last decades. Yup, phony appraisals have you paying thousands in insurance coverage you simply don’t need.
We here at MyDiamondAuction.com encounter this unfortunate reality every day: contrary to popular belief, diamonds are not a safe way to store wealth.
This one gets pretty sinister when you think about it: these professional appraisal companies say your diamond is worth a certain amount knowing full well it will never be worth that amount to anyone. So what happens when hospital bills are due or your house needs repairs and you’re counting on selling that diamond to cover the cost?
It’s devastating for us when a person needs $20,000 and their diamond appraisal says $30,000 but the highest offer for their diamond is $5,000. People are relying on these appraisals— you’re relying on your appraisal value! But it’s a lie.
Savvy investment scammers, or even your local jewelry store, use diamond appraisals to sell you on the idea of diamonds as an investment. But unless you’re a jewelry store with millions of dollars and wholesale connections, you can’t purchase a diamond and resell it at a higher price.
To make money on a diamond investment you’d have to purchase them at wholesale prices. To get wholesale pricing, you’d need to purchase at wholesale volume. After spending millions of dollars on thousands of diamonds, you’d need a retail store, equipment, employees, a jeweler, marketing material, and everything else it takes to operate a successful retail store. And even after all that, you would never sell a single diamond for its appraised value.
As I said before, a diamond is only worth what someone is willing to pay for it. That means there’s one way to reliably determine your diamond’s value: go around the world asking hundreds of professional diamond buyers for their best price.
Don’t laugh! That’s literally the only reliable way to determine your diamond’s ACTUAL value. Lucky for you, there’s an incredibly easy way to get your diamond in front of the world’s highest paying diamond buyers…
MyDiamondAuction.com shows your diamond to hundreds of buyers from around the world, asking each of them to make their best offer. All you do is log into our simple, easy to use website, then watch the offers to roll in. Accept or reject the highest offer and you’re done.
Whether you sell or not, though, MyDiamondAuction.com is the only way to determine your diamond’s real-world resale value. No matter how many time’s your diamond is appraised you’ll never actually know what it’s worth until you list it in the auction.
So, you ready to find out what your diamond is really worth? Submit your diamond to the auction today!