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| Gems & Jewelry |
A Fresh Market for Stale Stones
Jill Newman
01/01/2004
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The sale of a family’s jewels is most often prompted by crisis and decline—a failing marriage or death—in the popular imagination. But these dreary circumstances serve less frequently as the cause of liquidation than do changes in lifestyle and taste, insists Chris Del Gatto, CEO of SellJewelry, whose budding company has all but devoured the market for privately held estate and previously owned fine jewelry across the country and internationally.
 "Our clients typically do not need the money," he says. "But a pair of earrings worth $50,000 that no one wears nor wants is a nonperforming asset, and a potential liability."
Clients have flocked to SellJewelry’s discreet offices in New York and Chi-cago or to one of its 30 retail affiliates for a variety of reasons—yet almost invariably with jewels and watches clandestinely tucked in their handbags or briefcases. When a couple reaches new heights of financial success, for instance, oftentimes they choose to upgrade an engagement ring as a visible symbol of their new stature. One woman recently brought her 6-carat diamond engagement ring to SellJewelry before purchasing a higher-profile 20-carat diamond ring. Another New York client sold a 26-carat fancy intense canary diamond, worth more than $500,000 at retail, because she thought it was too big. "Her husband had given her the ring as an anniversary gift, but she wasn’t comfortable wearing such a large diamond," Del Gatto explains. "She had been keeping it in the bank vault."
Interestingly, women are more inclined to leave their unworn valuables in a jewelry box, safe or a bank vault for a few years—even decades—rather than sell them to estate dealers or local retailers. Not only do many fear that they will not receive full value for these pieces, but they also worry that selling them through a trusted local jeweler will lead to speculation about their financial or marital status. On the other hand, if they approach an auction house with important jewelry assets, they will incur considerable commission fees, which can reach as much as 30 percent of the sale price. Even if their jewelry does not sell, owners are still responsible for paying charges.
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