What Everybody Ought to Know About Jewelry Appraisals
Fine jewelry is an investment. It is one of your most important purchases. As with all your huge purchases, you would like to know its value at a given time. It is therefore essential that you need to appraise jewelry.
Before getting a jewelry appraisal, make sure you understand everything about jewelry appraisal.
1. A Jewelry Appraisal is more than just a Receipt for your Piece of Jewelry
A jewelry appraisal is a detailed document of your jewelry to determine its monetary value.
A diamond appraisal will include a detailed description of your ring, gemstone information, and a lot more such as:
Materials. The appraiser will thoroughly examine each metal and gem to determine its quality and other relevant information. Some lab work is typically involved (testing) to make sure the gold is real and not just gold-plated.
Type of Jewelry. This includes the brand, size or carat weight, color, unique identifiers, etc.
Marks. This is the name of the maker or jewelry house engraved on the underside or the inside of a ring. “Signed jewelry” is typically associated with a high level of craftsmanship and gets a higher ring appraisal value.
Workmanship. The way your jewelry was created and the quality of its workmanship has a high significance to its value. A piece of jewelry created by a masterful jeweler has a higher value than a mass-produced piece.
Historical Significance. An item owned by a celebrity or created in a particular era is considered more valuable.
Photograph. A photograph of the item is not necessarily required in appraisal. It is, however, still a good idea to have a photo of the item just in case it gets lost or stolen. A photo also helps a buyer determine whether the appraisal and the jewelry being sold match.
Market Value. This reflects the current market value of your piece.
2. Jewelry Appraisal is Used to Understand How Much your Jewelry is Worth
Not all ring appraisal are the same. You should know the reason you are seeking jewelry appraisal to know what type of appraisal you need.
Fair Market Value Appraisal. This determines the actual resale value of your jewelry. It is the price you may receive should you decide to resell your item. This appraisal will give a lower value than a replacement value appraisal.
Replacement Value Appraisal. People commonly appraise jewelry for insurance purposes. The appraisal contains the retail replacement value of your item or the cost of the replacement should it be stolen or lost. The replacement value is a higher estimate than the market value of your item because it estimates how much it would cost to buy a replacement.
Liquidation Appraisal. You will need this type of appraisal to know the resale value of your item should there be a need to liquidate it. An appraiser will appraise jewelry to determine its immediate resale value. The estimated value will be significantly lower than the fair market value of the item.
3. A Jewelry Appraisal Should Only be Done by a Expert Jewelry Appraiser
You must find someone who is qualified to appraise jewelry.
A qualified jewelry appraiser should have all these qualifications to perform an accurate and professional diamond appraisal.
Gemological Knowledge. Jewelry with gems should be appraised by a qualified Gemologist who has gained the highest level of expertise from the Gemology Institute of America (GIA).
Thoroughly understands jewelry manufacturing. An expert who has a full understanding of the various jewelry-making manufacturing techniques knows how your piece of jewelry was created. His knowledge of the manufacturing process of your item can add value to your jewelry.
Experience with Jewelry Appraisal. Find someone who has lots of years of experience in jewelry appraisal. If you are having your engagement ring appraised, his experience should be focused on ring appraisal.
Credentials. Jewelry appraisers need to have certification from a national organization such as the Gemological Institute of America (GIA). These organizations have documents of the level of training achieved by a jewelry appraiser.
A qualified and trustworthy jewelry appraiser should be able to offer you the following:
How he will appraise jewelry.
How he can meet your needs in terms of the purpose of your jewelry appraisal.
The jewelry appraiser should be able to provide you with an official appraisal document complete with his seal and signature.
4. Jewelry Appraisal Cost is not based on the Percentage of the Value
There are no federal or state regulations on who can appraise jewelry, yet there are industry standards.
Trustworthy jewelry appraisers typically charge hourly fees or a fixed charge. The cost to have your jewelry appraised should not be a percentage of the value of your item. There is a tendency to inflate the value of your item to charge a higher fee.
A jewelry appraiser giving unclear fees without explaining what you will be paying for is a red flag. Offering to buy the jewelry he is appraising is also unethical because the appraiser may tend to undervalue your item so he can buy it for a low price.
5. Getting a Jewelry Appraisal is not a One-Time Thing
A jewelry appraisal is not a one-time occurrence. To ensure the most accurate value, you need to appraise jewelry every three to five years.
The values of precious metals and gemstones fluctuate frequently so your documentation needs to be up to date for insurance purposes.
A current appraisal can also spot any damage to your jewelry which may impact its value.
Final Thoughts
There are countless reasons why it is a good idea to always have an updated jewelry appraisal.
You need to appraise jewelry for insurance purposes, to know the current value of your jewelry for resale, to settle an estate, to establish ownership, or for other financial matters.
Whichever your specific reason is, a diamond appraisal is an important aspect of owning jewelry.
In light of that, a thorough understanding of the jewelry appraisal process and answers to all your questions are a must before getting a jewelry appraisal. Make sure to work only with a qualified and trustworthy jewelry appraiser.