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Author Topic: Opal Pricing  (Read 3265 times)

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Jennjenn

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Opal Pricing
« on: October 10, 2016, 03:05:23 PM »

I'm wondering if anyone can point me in the right direction on getting current opal pricing for finished cabochons / rough opal?  We just had a very generous amount of opals donated to our lapidary program at our College from an Estate.  I need to do an inventory and give her a tax receipt but I have no idea on pricing and the tax receipt should reflect the current pricing.

Can anyone help me?  The majority of opals are the standard sort - white with flash, then there are some Lightning Ridge as well.  Some of the Lightning Ridge rough is quite crazed as it has not been kept in water so I'm unsure if it's worth anything?  I personally have little to no experience working with Opals so I'm really unsure of what we have is worth anything or not.

Anyways, I'm hoping someone might be able to help.

Much appreciated!

Jennifer
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Phishisgroovin

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Re: Opal Pricing
« Reply #1 on: October 10, 2016, 08:19:10 PM »

water and opal is just a gimmick, it does nothing but hide flaws in my opinion.
Not sure how to price it though. sorry
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Neural

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Re: Opal Pricing
« Reply #2 on: October 11, 2016, 01:13:27 AM »

While I strongly suggest multiple sources of research, to *really* dig into things, check out "Opal Identification & Value" by Paul B. Downing.

Even still, opals are a rough item to price due to their nature. 
Every single opal is unique.  What you hold in your hand  is one of a kind in the universe.  None before, nor after, will ever have that fire pattern, or that cut, etc.
Because of this, things can get very subjective.  Where one person might pass it over, another person would be willing to pay well.
One opal I can think of in particular was sold many years back, when I was just starting out.  It was a black opal that had almost no flash, until you looked at it in the sunlight.  Then, out of the darkness, at certain angles, it would light up with amazing fire.   Very acute angle visibility with opal fire is not very desirable in  many cases, but, if I had the money, I'd pay quite a bit to have that opal.  Because it means something *to me*.

To start out, however, as you mentioned that some are crazed, get someone with a good eye, a loupe, and a soft white light source to "candle" every last one of them.  Sort out the ones that are crazed, figure out which of them have cracks, and set aside all the ones that are in good condition.
Crazed and cracked opals are rarely worth anything.  Some cracked opals, if large enough, can be re-cut into smaller stones that will have value, but you have to question why they cracked in the first place.
Once you have all the "good" opals set aside, sort them by general color.  Black, white, and crystal (clear).  Obviously there are many variants of each, so just do a quick sort of the obvious ones for start.
Next, simulate sunlight (or use actual sunlight), and look them over for their fire.  Again, sort them out, but this time base it on how "bright" they are.  Again, this is somewhat subjective, but if you have a bunch of them, some will be clearly brighter than others.
Lastly, weigh them and keep track of their weight.  and if it's not too much trouble, measure them for their size.

At this point, you're going to be ready to make some decisions on price.  You have a few options. 
One: obtain the book I listed above and spend a week studying it, then research other sources on the internet to confirm for yourself if you trust what Mr. Downing has to say.  Once you are more knowledgeable about opal, you'll be ready to make some guesses.
Two: Gather up the best and the brightest of the opals, and take them to a GIA certified appraiser and let them give you a value.  However, the cost of the appraisal could easily outweigh the value on the opals.
Three: Take a couple pictures (different angles) of the opals, and post them here and let us lesser qualified people take a stab at pricing them.

Out of these three methods, option 2 is the best option for nailing down a price, and a good appraiser will probably offer documentation that can be used for insurance purposes.

All of this, of course, depends on how much time you have to deal with the opals.  If it is not something you are willing to invest some time into, you won't be able to get the value out of them, and while it is unlikely, you might lose out on a real gem.

Rough opal, like cut opal, has varying levels of quality too, but nailing down a value isn't as easy because they have so much potch in the way at times.

If all else fails, just send everything to me, and I'll hoard them like I do the rest of my opals. :D
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Jennjenn

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Re: Opal Pricing
« Reply #3 on: October 11, 2016, 04:17:28 PM »

Thank you for your very thoughtful and detailed response.  I will get the book and start from there.  Thanks!
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charles

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Re: Opal Pricing
« Reply #4 on: October 12, 2016, 04:08:00 AM »

This is just a thought and the tax laws may have changed. At one time all the recipent of a donation had to due with the letter was describe what was given, for instance 200 grams of opal, or a 1990 buick. It was p to the giver to put the value on it. Check with a tax expert first and see what the requirement is before you begin.

Just my $0.0002 worth this AM. :icon_sunny:


Charles
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Jennjenn

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Re: Opal Pricing
« Reply #5 on: October 12, 2016, 06:53:48 AM »

Because I am issuing a tax receipt on behalf of the College it needs to be accurate so I'm not comfortable just assigning a value without any backup.  I would also like to get the woman as much of a deduction as possible given her incredible generosity to the students.  It really was unbelievable.
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charles

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Re: Opal Pricing
« Reply #6 on: October 12, 2016, 07:04:07 AM »

You misunderstood my reply. As I understand the law the Donor assigns the value not the college. Please check with someone who knows the current tax law. Years ago when I was in a similar situation I was advised to list only what the donation was and that the donor should be the one to put a value on it for tax purposes. Like I said the tax laws may have changed since it was several years ago that this happened.
For instance the receipt you fix up would say that they donated 200 grams of opal. When the donor files the tax return they would list the donation as xxx grams of opal valued at $xxxx.xx. Now, if you want to advise the donor how much the opal is worth, you can but it does not need to be on the receipt, but again please check with someone that knows what the current tax requirement is.

Charles
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Jennjenn

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Re: Opal Pricing
« Reply #7 on: October 12, 2016, 08:31:53 AM »

Not sure if it's different in Canada or not to be honest.  But I will take your advice and ask my accountant to be sure.  Thanks!
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Ken S.

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Re: Opal Pricing
« Reply #8 on: October 12, 2016, 09:11:41 AM »

I'm with Charles on this matter.  When I donated a car to my school for it's automotive program I got a receipt with the make and model #only, and I put in a value.  I think that's the way it still goes (Federal).  Weigh 'em out and put the weight on the receipt.  You could look in Rock & Gem Mag for some current ads.

Ken S.
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jakesrocks

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Re: Opal Pricing
« Reply #9 on: October 12, 2016, 02:07:32 PM »

Several opal specialists & a couple of gemologists on the following forum that may be able to help. http://www.opalholicsanonymous.com/phpbb/index.php
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ileney

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Re: Opal Pricing
« Reply #10 on: October 15, 2016, 07:33:49 AM »

Is this a donation in the US? If so, I think you should note the weight of the opals, the size range, and how many were white vs. black, that they are all Australian, and that's what should be on the receipt. No prices. That is up to the donor I believe as it is when you donate sweaters to goodwill or a table to a hospice. My thinking is: 1) you may be undervaluing them. E.g. if the pricing on the opalholics site is at all accurate, then I can't imagine what my opals are worth. ( I am not so sure it is accurate, but it may be) 2) those of us here can't price your opals from pictured because opals are very difficult to photo except by someone who routinely photos opals. I just took about 40 pictures of one Opal in full sunlight and out of it, on different backgrounds.  Only two pictures looked decent and both pictures exaggerated the flaws while underrepresenting the fire. In person, three different people holding it in their hand could not find a tiny sand spot. It was quite noticeable in the pictures. Also, the reds changed to orange and the orange to gold in the pictures and half the fire didn't show.3) Australian opals are currently still much more valuable than Ethiopian opals of equivalent size, even though that doesn't seem right. 4) only an expert Opal cutter can tell from rough what it will produce cut and even then they can be wrong 5) Australian opals with cracks and even crazing still have value thought it may only be ten cents on the dollar. Anything done to treat them must be disclosed.
Take a look at Village Smithy Opals and look at their ( limited) Australian Opal rough to get some ideas.
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gemfeller

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Re: Opal Pricing
« Reply #11 on: October 15, 2016, 10:03:36 AM »

I'm having trouble following this.  I assume you're in Canada from your posts.  If Canadian tax law is anything similar to American, valuing any gift is the job of the giver, not the recipient.  It shows as a tax deduction on their personal or business tax return.  Naturally the giver wants the highest deduction possible to decrease the amount of any tax owed.  I did a search for Canadian gifting tax rules and found the following:
 
"Personal Use Property Gifts
 
"Listed personal property items are expected to increase in value. Works of art such as sculptures, drawings, prints, drawings, etchings, paintings and similar works are considered listed personal property. Jewelry, rare books, manuscripts and portfolios, stamps and coins are listed personal property. Any property worth more than $1,000 acquired after Dec. 31, 1971, should be appraised before being donated. Listed personal property may be subject to the capital gains tax."

If you've consulted an accountant, as posted, you probably already know this.  But I don't think it's your job to become an opal valuation expert.   Hope this helps.


 

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olgguy

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Re: Opal Pricing
« Reply #12 on: October 16, 2016, 11:00:03 AM »

   See "Where to get your Opal Fix" posting from 7/27/16, reply by "Opal Mike" In Australia. He gives some background for current pricing costs.
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