Comparison between Jewelry Appraisal Value and Selling Price: Understanding the Distinctions
Is it time to part with some of your jewelry that is gathering dust in your jewelry box? Are you considering selling your piece? How much should you sell your jewelry for? To be in control of the selling process, you should know the difference between a jewelry appraisal value and the selling price of jewelry.
If you are in the market for selling your jewelry, understanding appraisal vs. selling price helps you set realistic expectations about the value of your jewelry or the amount you should be willing to sell it. Conversely, an accurate jewelry appraisal value is necessary for the right insurance coverage.
Jewelry appraisal value and selling price of jewelry represent different figures and serve different purposes. One has a higher value than the other!
In this blog, you will understand the elements differentiating jewelry appraisal value from the selling price of jewelry.
1. Definition
Jewelry appraisal value is the process of determining the monetary value of your jewelry. A professional and accredited jewelry appraiser assesses the many factors that contribute to the value of your item.
The selling price of jewelry is the actual price at which you can sell your piece in the secondary market, either through a private transaction, a retail store, or an online platform.
2. Purpose
The primary purpose of a jewelry appraisal is to provide an estimated value of your jewelry for insurance purposes to help you get a replacement if your jewelry is damaged, stolen, or lost.
A jewelry appraisal is generally good for about two to five years, so you should get a new one every couple of years to have updated insurance coverage or before selling your jewelry.
The selling price of jewelry reflects what a buyer is willing to pay. It is the market value of the item.
The appraised value is much higher than the selling price if used for insurance because it helps insurance companies determine your jewelry's replacement value.
A jewelry appraiser may determine the replacement value of a diamond ring based on a brand-new ring. This allows the insurer to estimate how much you would receive if something happened to your ring.
On the contrary, the selling price of jewelry is its actual value in the marketplace. The resale value or selling price of jewelry is much lower because it is already pre-owned or not new. You will not be able to sell your pre-owned jewelry for its original price because it wears over time, so it will be worth less.
3. Factors Considered
A jewelry appraiser considers factors such as the quality and rarity of materials (e.g., gemstones, precious metals), craftsmanship, age, market demand, and replacement value.
Various factors influence the selling prices of jewelry, such as the current market conditions,the condition of the jewelry, its design, and any sentimental value it may hold for the seller.
4. Accuracy
Jewelry appraisal values can be conservative and may not represent the actual market value. An appraisal value is often higher than the intrinsic value, or what you may get when selling your jewelry.
Selling prices vary widely based on market trends, location, and negotiations between the seller and buyer.
5. Setting the Value
A jewelry appraiser determines the jewelry appraisal value. The seller specifies the selling price of the jewelry. The seller may consider the appraised value but still has the final say on how much to sell an item. The jewelry appraisal value is typically much higher than the selling or resale value.
A jewelry appraiser determines the jewelry appraisal value based on his evaluation.
While selling prices can be negotiated between seller and buyer, appraisal values are not.
6. Stability of Value
A jewelry appraisal value remains stable until a significant event, such as a material price increase,
The selling price of jewelry may fluctuate due to economic conditions and market trends.
Jewelry Appraisal Value vs. Selling Price
After establishing that the jewelry appraisal value and selling price of jewelry do not have the same values, you technically do not need a jewelry appraisal before reselling your jewelry.
A jewelry appraisal gives you the peace of mind that you can get the replacement value from your insurance company should anything happen to your jewelry. An appraisal also gives you an estimate of what your piece is worth. While it does not echo the resale value or selling price of jewelry, the appraisal value can give you an estimate.
Buckhead Jewelry Appraisers
Buckhead Jewelry Appraisers in Marietta, Georgia, provides high-quality jewelry appraisals.
Sit down with Robert Hurt, watch him appraise your jewelry, and take your jewelry home with you after your appointment.
Robert Hurt is a G.G., A.J.P., Gemological Institute of America Graduate Gemologist since 1986, and Gemological Institute of America Accredited Jewelry Professional. He is a member of the National Association of Jewelry Appraisers.
Buckhead Jewelry Appraisers comes up with the jewelry appraisal value of your item for insurance replacement based on the average cost of a comparable item in retail jewelry stores in Atlanta, Georgia, and surrounding areas, excluding taxes.
On the other hand, Robert Hurt researches the secondary marketplaces for a comparable item to your jewelry to determine its fair market value or selling price.
Conclusion
A jewelry appraisal value is a formal estimate of your jewelry’s worth for insurance purposes. The selling price of jewelry is the amount a buyer is willing to pay based on the current market value of your item.
It is typical for the selling price of jewelry to be lower than the jewelry appraisal value. Appraisal values include additional costs related to replacing an insured item, which may not be relevant when selling jewelry.
Understanding appraisal vs. selling price values is crucial for making informed decisions when selling, buying, or insuring jewelry.
Whether you need insurance for your jewelry or want to know how much your treasured jewelry is worth, contact Buckhead Jewelry Appraisers and get a quality and accurate jewelry appraisal.
Robert Hurt has, since 1986, been a trusted partner for jewelry appraisals. Take advantage of the opportunity to have your jewelry appraised by Robert Hurt!