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Show . January 27, 1983 Newsprint Page 3 Roper Gets Ripped-of- f on Diamonds Learns $3,000 Lesson Vance Roper doesn't keep his newly bought diamonds in a safe place anymore. Before, when they were worth $3,000, 1 used to be real cautious with them. Now that they're only worth $300, I'm not, Roper said. Roper bought the two diamonds from a diamond broker out of Miami, Fla., International Diamond Group, which has a reputation around the nation with diamond salesmen for marking up the price of the diamonds. They operate on a mark-u- p greater than Zales, which has what 1 consider a high mark-u- p even for retail," said a diamond broker from Denver, Stan McWhinnie. But at the time Roper bought the two diamonds both .28 carats, white color (H) and almost flawless (VVS 2) he believed the salesman to be honest and the price to be reasonable. I could learn a lot from the salesman. He really made me feel good, and that I could trust him," Roper said. They would overcome any objection I had. They are just great sales people. But I paid way too much. And I consider myself a savvy person when it comes to investments." And in the end, Ropert investment turned out to be not too sound. Calvin Adams of Adams House of Jewelry told him the two stones were worth too high." about $500 Roper paid about And not only does Roper want to learn from his experience, but $3,000 for them. too Thats way much, he also hopes that everyone will McWhinnie said after being told learn from his experience. what the Miami firm was selling There nothing I can do about their diamonds for. You could this rip-o- ff except to warn people ." buy a decent half carat for that about these types of would make And so Roper decided to tell, you price one that is a his if diamond Even the money. story to the Basin. And his D" color (the most brilliant story begins when he filled out diamond color), $1,500 is too much of a mark-u- p for a 28 point diamond. You wouldn't even be able to cover your investment." I McWhinnie said that the retail price of a 28 point diamond with VVS 2 clarity and near colorless rip-offs- would be around $850. But I sell them generally about half of the retail price," McWhinnie said. Therefore, Roper couldve bought the two diamonds for about $850, instead of the marked-u- p price of $3,000. I had been warned through the media to beware of buying investments over the telephone, and I was warned not to invest money I dont have. But it was my fault," Roper said. Right now I could no more take a $2,500 loss than to have my house burn down." But Roper has taken a positive outlook of the situation. If I use this experience, learn from it and donl do it again, the price of the experience would not have been realize the profits when diamonds go up in the next couple of months.' But he didn't ask for the order right then on the first call, which made me think he was telling the truth," Roper said. He called Roper up a few days later and talked to him some more about them. Roper said that he expressed his reservations to the he'd do that," Roper said. Then the salesman called Roper about an hour later and said American Express had accepted the purchase. Theyre really good about making you feel good. He said on that call, You must really have good credit." And when Roper received the diamonds, he kept them hidden could learn a lot from the salesman. He really made me feel good, and that I could trust him. investment. He was a good salesman, and I could learn a lot from him, said Roper, who owns his own cleaning service. It was about two months after he received the diamonds that Roper decided to take them to a jeweler to find out how much they are really worth. As soon as I walked into Adams House of Jewelry, Mr. Adams knew I had been ripped off when he saw the case," Roper said. He told me they were only worth $500, but I might as well not sell them. Maybe in ten years theyd be worth $3,000. But in the meantime youll get more value from it if you put it into a nice ring. So thats what Im going to do." some cards from Success Unlimited magazine saying he was interested in hearing from investment companies. I would get information on silver, real estate, gold, copper and diamonds." He received a call from this diamond company who offered him what they said was a good deal. They said De Beers has been holding on to a bunch of diamonds which is raising the value of diamonds because the supply isnt there. They said they are selling them for the price six months ago. They said, Youll salesman, but the salesman calmed his fears. He said they couldn't keep the business if they werenl offering the diamonds at a good price, and I trusted him. So I said OK and he said he would call American Express and put it on my card. Then he calls back a little while later and says, 1 want to know now if youve got cold feet. If youre going to regret it or if its going to put you out, then well cancel the deal. Thats another reason why I thought the deal wasn't a bad thing. If the guy just wanted to take my money, I didn't think from everyone, saving them for a wedding ring when he gets married. He never suspected that his $3,000 investment was actually only worth $500. In fact, Roper said that they called him once more about a month later, asking him if he wanted to invest any more into the booming" diamond market. I asked him if he wanted me to go into debt to buy some more diamonds. And he said, No sir. You should never borrow money for this. You should exercise sound investment strategy, and shouldn't go into debt for any But there is one thing Roper wished he would have done. I shouldve listened to the feeling I had. When you dont do what the spirit says to do, or do what the spirit tells you not to do, then you regret it later, Roper said. And McWhinnie says before anyone is going to invest big bucks into diamonds, they should first check with another broker or dealer. Its a wise thing to check with a good establishment to make sure that its legitimate." Roper agrees. Im not jilted on diamonds. 111 just buy wiser now." |
