Appraiser 4 Jewelry

This is a story about a lady who, while on a cruise, purchased a ring (a gold ring containing a Tanzanite, and two side diamonds) from a "port-o-call" jewelry retailer. The lady purchased the ring, even after enduring the archaic two-time discount game (think about the last time you visited a car dealer). She was told she had a "30 day guarantee" within which the piece could be returned for credit if it did not meet the quality of, or appraise to, the seller's declarations.

The DeBeers virtual reality drama continues...

My apology for taking six months to produce Part Two. You should now have an understanding that diamonds are basically a "controlled substance".
So here, I feel a fast overview of the distribution architecture of the diamond industry, from the mine to the ultimate consumer is probably next in order.
Accounting just for DeBeers, rough diamonds are mined from its several sources in and about South Africa. The uncut diamonds are cleaned and separated, and sent off to the Diamond Trading Company (DTC), a wholly owned subsidiary of DeBeers located in London. There the diamonds are sorted for quality, size and color. DeBeers "allows" an exclusive, hand-picked list of buyers called sightholders; who are invited to London a few times per year, and given the opportunity to purchase "lots". or "boxes" of gem-grade rough diamonds. The prices are set by DeBeers, and a sightholder may either accept or reject the lot they are offered.

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The "Diamond" and the Cartel that invented it, and still drives it, is by commercial reckoning now 120 years old. The DeBeers organization (founded 1888) has far exceeded the average life of any other cartel. Diamonds have been integral to the American consuming public for nearly 100 years (who hasn't heard "A diamond is Forever"?) and yet, remains one of the most intriguing, and narrowly understood phenomenon in the annals of modern business.

There is no shortage of information on the subject, and modern diamond industry is more public and vital than ever. DeBeers has had its portion of public exposure: scathing media reports of "the South African monopoly", rumors of involvement in sectarian violence in several African countries, strong accusations over "blood" or "conflict" diamonds, ad-nauseum. Yet, the questions I am most frequently asked are "What is the real value of diamonds?; if they aren't rare, why are they so expensive?; what is the truth about the cartel?, why do they cost so much, but are worth nothing when I want to sell them?".

Meanwhile, the distribution and retail segments of the diamond business are so engaged in a contest (or maybe more like a rabid dog fight) to be more recognizable than the other, the average consumer is now awash in a virtual ocean of sales hype, name branding, technology and confusion. Yikes!

My goal is to present the diamond industry from a different perspective (my perspective); the perspective of a professional appraiser, market observer; not a professional seller. I plan to cover all pertinent topics from the beginning, to present day; in a series of installments, and do it in some loose dispensational order. QE

Recently we received some items for identification and appraisal, among which was this old copper-nickel coin; official looking, and identical in most ways to a 19th C. penny; dated, but without monetary denomination. Obviously not quite US coinage. Here’s a bit of history we hope you find entertaining.

A significant portion of Elliott Appraisers' assignments involves clients, who at the request of their insurance carriers, bring their fine jewelry for scheduled property additions and updates. Frequently, clients bring old or earlier documentation for some of the items.
Of special interest, and the focus of my comment, are those replacement value documents made between the years 1980 - 1983.

Upon delivery and review of the new document, the response of the client is often predictable. You will likely agree that the value differences in gold, diamonds and colored stones between 1981 and 2005 are probably remarkable; and your thinking will be right. But I'll bet what you think is not what is... Inevitably, clients ask two broad questions; "what happened", and "why?" So I offer the following (also hopefully informative, entertaining and politically incorrect) distillation of what and why.

Have had questions, both from private clients and attorneys; evaluation and valuation.
As with other connected misnomers; the difference is subtle, but important (but first: let me not forget to tell you a story). In a recent submission for yet another personal property theory course; my professor, for whom I have much respect (a PhD. X 2.5, at least); corrected grammer in my paper with incorrect grammer!! I will not elaborate further, except to communicate the following, to eliminate confusion:

You can reach us by phone, fax or email: 
Quenton Elliott Jr. 

713.530.9919 (office)
713-337-0919 (fax) 

or via email: quenton@appraiser4jewelry.com

ELLIOTT APPRAISERS, LLC
Independent Valuation of Personal Property • Gems and Fine Jewelry • Consultants

FOCUS

The Valuation of Gems and Fine Jewelry:
A highly specialized practice within the discipline of personal property appraisal. We have 30 years tenure in the Gemological and Valuation sciences; and have built valuable relationships among the numerous and varied sources, distribution networks, markets and marketing levels of the jewelry industry.

We offer our clients a unique scope, depth and level of experience in the gems and jewlery industry. We first determine how Elliott Appraisers may best meet your particular need. We provide complete and comprehensive market-specific ananyses and reports, designed to satisfy both your needs and requirements; whether for insurance, estate/probate, financial, division/dissolution, civil court proceedings, comparison, or for personal or business consultation.
Among the most frequently subjects encountered:
• diamonds, colored gems
• contemporary jewelry and watches
• vintage and collectible jewelry
• custom jewelry design and fabrication

GUIDE

QUENTON ELLIOTT, JR, GRADUATE GEMOLOGIST (GIA, in-residence 1976):
Established Elliott Appraisers in 1998 as an independent, professional appraisal practice dedicated to the valuation of gemstones, fine jewelry, and selected decorative arts.

Elliott Appraisers, LLC was formed in 2003, and is completely independent of any other company doing business under the name Elliott.

Quenton, Jr has been engaged in the fine jewelry industry since 1976. He was for over 25 years (divided into 2 "tours"), a second-generation managing member of a family-owned, custom jewelry manufacturing firm; bisected by 2 years as a salon manager-buyer with a high profile national jewelry salon. Throughout - Quenton remained involved in the discipline of gems and jewelry valuation, and is a perpetual student and observer of world markets, commerce, and trade developments.

PROFESSIONAL

• Graduate Gemologist Diploma - In Residence (G.G.) - The Gemological Institute of America (1976)

• Certified Insurance Appraiser (C.I.A.) - The Jewelry Insurance Appraisal Institute (1998)
• Speaker / commentator to private and industry groups
• Web-log writer, industry pundit
• Expert Witness: testimony, private advisory and mediation

General Areas Covered
• Replacement Valuation - for Comparable Insurance Coverage Underwriting;
• Fair Market Valuation - for Estate, Taxation, or Distribution;
• Marketable Cash Valuation - for Trade, or Prospective Sale of Personal Jewelry;
• Damage Assessment Valuation - for Insurance and Capital Loss;
• Forensic Gemological Analyses Pursuant to Resolution of Legal Issues.

Elliott Appraisers, L.L.C. maintains modern onsite and mobile laboratories for the inspection, identification or analysis of diamonds, colored gems, metals, fine jewelry, and selected decorative arts. Utilizing a wide array of gemological, trade, supply and industry research, associates of Elliott Appraisers remain abreast of:
• Technical advancements in gemology;
• Changes in gemstone treatment and enhancement;
• Marketing, pricing and consumer trends involving diamonds, colored gemstones, precious metals and fine jewelry.
Documents provided by Elliott Appraisers, L.L.C. have been widely accepted by major insurance companies, recognized auction houses, estate, probate and civil attorneys.

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Black’s Law Dictionary defines an appraisal as “a valuation or an estimation of value of property by disinterested persons of suitable qualifications” and “the process of ascertaining a value of an asset or liability that involves expert opinion rather than explicit market transactions.”

This is a question I am regularly asked in regard to appraisal language. Price is frequently confused with value (and abused; especially in the hype-rich arena of retail jewelry, where one is often used to justify the other). While price and value are nearly always used in close proximity, they are really two different things. I follow with terms, and three examples.