Buying fine jewelry is often both a financial and emotional investment. After all, a purchase of this kind is usually tied to a special occasion or significant stage of life or relationship. Because of that, it can be difficult to place an absolute value on the ring, watch, or necklace that you’ve bought.
But having an accurate and up-to-date jewelry appraisal for your most valuable pieces is very important. It not only validates ownership, it provides documentation that can be vital if you need to make an insurance claim, try to sell or donate it, or will be leaving or receiving it as an inheritance.
However, not all jewelry appraisals will guarantee the claims or sales process will go smoothly. A lot depends on the date of your appraisal, the information provided within it and the qualifications of your appraiser.
With no federal licensing requirements in this field, a surprising array of people can “appraise” your jewelry – chain store or pawn shop owners and managers are examples. They may know their respective fields of work, but with limited education and actual expertise in stones, metals, jewelry design and authenticity, the documentation they are providing can be subject to a lot of questioning.
It’s important to always have a Graduate Gemologist (GG) or Certified Jewelry Appraiser preform your appraisal.
Properly credentialed appraisers specialize in knowing exactly what they are looking at and for, and can offer a qualified opinion regarding all aspect of your piece in your market. The also how to identify any treatments that have been done to a piece of jewelry that have either detracted from or contributed to its overall value.
Credentialed appraisers will seek to understand the “why’s” of your appraisal.
- Insurance (make-whole, like-kind replacement)
- Liquidation (need-to-sell; may involve pawning, consigning or an online marketplace
- Fair market (involves a willing seller and willing buyer)
- Estate (for auction value, inheritance buyout or tax liability)
- Donation/tax write off
A GG or certified jewelry appraiser will use a thorough understanding of wholesale, factual and sentimental values to provide you with an accurate appraisal that meets your needs. Detailed appraisals should include:
- the date and location of the appraisal
- the credentials of the appraiser
- photographs
- how markets were explored to determine value
- the equipment used (loupe, microscope, etc.)
- any limiting conditions — whether gemstones were judged in the mounting or out, quality of lighting and if original grading reports were available and relied upon
- if averages were used for multiple stones and/or metal was tested all the way through or only by the naked eye
The more intricately detailed the appraisal is, the less room an insurance company has to wiggle out of coverage and the more leverage you have in a resale situation.
The intricacies of a qualified appraisal might also include authenticating designers whose signature stamp has worn off over time or determining the origin and age of a piece.
All of this not only requires proper credentials, but ongoing continuing education to keep professional knowledge and qualifications up to date.
A potential buyer might be willing to pay for sentimental value in a piece they really want, however, an insurance company will not. Insurance companies will usually accept and base your premiums on any appraisal you initially provide, but they may later question the contents when you try to make a claim. Low industry oversight actually benefits insurance companies in this way because poor quality appraisals often justify them not honoring the stated value when paying out a claim (even though you’ve been paying premiums based on that same value.)
A certified appraisal specialist will provide you with solid documentation as well as information to prepare you for insurance agency negotiations regarding how the appraisal would be used if loss or theft occurred. This can help you can decide if a rider to your current homeowner’s policy will be satisfactory or if you’d prefer to insure your valuables with someone else.
Remember that “value” is often subjective. Appraisals performed at the point of sale are often based on how the retailer values the piece, and not what the market will bear once you leave the store. Jewelry appraisals are considered snapshots in time taken under specific market conditions. Numerous variables can affect value, which is why you need to have your jewelry reappraised every three to five years.
At M. Robinson Fine Jewelers, we provide quality appraisals by Graduate Gemologists and Certified Jewelry Appraisers every day. We will gladly appraise your fine jewelry for $125 for the first piece and $99.95 for each additional piece. Contact us today.