Features and Benefits of a Jewelry Appraisals
A jewelry appraisal is a crucial step in protecting the value of your jewelry. A regular appraisal is a must especially if you have an expensive piece.
Having a jewelry appraisal is worth the extra cost. Most of your pieces of jewelry are special to you and a jewelry appraisal is the only way to document the description and value of your jewelry.
A jewelry appraisal is a process done by a qualified gemologist to authenticate the overall quality and value of your jewelry. It is an unbiased professional evaluation of your jewelry’s value.
The professional appraisal will come up with a specific monetary value for your jewelry depending on the materials used, gemstones, the setting, condition, and characteristics of your jewelry.
Benefits of Jewelry Appraisal
A jewelry appraisal is done for several different purposes. The value of your jewelry on the appraisal differs depending upon that purpose.
It is highly encouraged that you have your jewelry appraised to get these benefits:
Value for your jewelry
With today’s roller-coaster values of gold, silver, platinum, and gemstones, knowing the value of your piece of jewelry can save you a lot of headaches when it gets lost or stolen.
A jewelry appraisal will give you information about your piece including its materials, history, and current value.
Fair Market Value
The fair market value of your jewelry is based on its current market value and the condition of the piece. It is an estimate of the actual resale value of your piece and the price you might get if you plan to resell your jewelry.
A fair market value jewelry appraisal is important in cases of resale, liquidation and estate settlement, dissolution of marriage, guardianship, or collateral.
Replacement Value
Most homeowners’ policies do not automatically insure your jewelry. Read the fine print of your policy if you want to include your jewelry with the other contents of your home.
If you need to buy additional policies for your pieces of jewelry, you need to have them appraised for the full amount it is worth as part of the insurance process.
The replacement value of your piece of jewelry is the realistic dollar amount when your jewelry needs to be replaced when it gets stolen or lost. Your jewelry appraisal helps the insurance company insure the full retail price.
The replacement value of your piece of jewelry has a much higher estimate than its resale value because it details how much it would cost to buy an exact replacement.
A replacement appraisal provides a detailed description of your piece of jewelry so jewelers can try to create a replacement that is closest to the original.
Getting a qualified jewelry appraiser means you are protecting your investment. Your piece of jewelry may be irreplaceable, but it helps to know that you are getting all you can in case it gets damaged, lost, or stolen.
Liquidation Value
A liquidation appraisal is done if you quickly need to liquidate your piece of jewelry in cases of estate liquidation or divorce settlement.
The liquidation value of your piece of jewelry is significantly lower than its fair market value because of the immediate need to resell the piece.
Assessment of the Condition of your jewelry
A jewelry appraisal can provide you with an updated assessment of the condition of your piece of jewelry. Over time, settings, clasps, prongs, can gemstones can become damaged or loose.
An appraisal ensures your jewelry is in prime condition. A jewelry appraisal can also draw to your attention any minor damage so your piece can immediately be repaired.
A jewelry appraisal helps protect your investment. An appraisal is not a one-time thing! It is suggested to have your jewelry appraised every 3 to 5 years because jewelry values fluctuate.
What should your Jewelry Appraisal Contain?
Jewelry appraisal is a process that should only be done by a qualified professional. A qualified appraiser is a Graduate Gemologist from the Gemological Institute of America (GIA).
If you are getting an appraisal for insurance purposes, find a Qualified Insurance Appraiser (CIA) who is a Graduate Gemologist with special training in jewelry appraisals for insurance.
A written Jewelry Appraisal should include these information:
Your name, address, and contact information
The type of jewelry
What your jewelry is made of
The type of gemstone
How the stones were graded
Design of your jewelry
Color photograph of the jewelry
Condition of the jewelry
Value of the precious metal
Designer, manufacturer, or designer of the jewelry
Purpose of the appraisal (for insurance, resale, or liquidation)
Credential of the appraiser
Signature of the appraiser and date signed
It is best to get a jewelry appraisal when you have full knowledge of the appraisal process and the features and benefits of having one.
How Often Should You Get a Jewelry Appraisal?
It is not right to assume that a jewelry appraisal is a one-time occurrence. You should consider having your jewelry appraised every 3 to 5 years.
If you are getting an appraisal for insurance purposes, your insurance company will typically require it to be updated yearly.
With that in mind, a regular jewelry appraisal is required for these reasons:
Jewelry fluctuates in value. An appraisal done over 5 years ago is less accurate. An up-to-date appraisal is a record of the current value of your jewelry.
Any damage to your jewelry impacts its value. Over time, your jewelry may incur some damage. A regular jewelry appraisal will verify the current condition of your jewelry.
Your expensive piece of jewelry is an asset. You get updates on the appraisal of your other assets. You update your portfolio when stocks fluctuate. Why should you not update the appraisal of your jewelry?
You made the right decision to get your jewelry appraised and insured. You should update it regularly so your decision pays off long term.
Final Thoughts
A piece of jewelry is not only an adorable accessory. It is a desirable and reliable investment that can be as valuable as your vehicle or even your home.
It is a must to have documents to record the value of your vehicle and property. The same goes for your pieces of jewelry. You need jewelry appraisal for proper documentation.