Understanding The Process Of Jewelry Appraisal

Jewelry appraisal for insurance is pretty straightforward. However, you might not have heard of anything like this until you fell in love and pursued an engagement ring. However, it’s sensible to ensure your valuable gem. Before we get to the process of doing this, let’s look at why you might need the jewelry appraisal.


What’s a jewelry appraisal, and is it important?

When you buy a high-value piece of jewelry, apart from the receipt or invoice, a jeweler is likely to offer you a document that accounts for all the material used to mold the product. If it’s a diamond, elements like shape, the stone’s weight, clarity, cut, and quality. 

Jewelry appraisal for insurance will be part of your insurance provider’s requirement, which explains your jewelry’s value to them.

The insurance company uses this document as proof of ownership if you lost or your jewelry gets stolen. And as precious gems and metal prices fluctuate, they recommend having the appraisal renewed after two years. 


Reasons for getting a jewelry appraisal

Most people get a jewelry appraisal for insurance replacement. It’s crucial to note that, for this purpose, ensure the amount reflects the actual cost to be replaced if your jewelry gets stolen. 

A person can opt to add the jewelry to their homeowner insurance, but most of these providers may require an experienced independent jeweler’s appraisal.

One other reason is reselling the jewelry so that they can know the current market value.


Benefits of a jewelry appraisal

The document helps you to get a fair and accurate value of your item.

Appraisals show a clear explanation of a diamond’s grading process, and they get signed with an official seal. An appraiser may also include:


  • His qualifications.
  • The date of the valuation.
  • Any other person involved in that process.


The value of jewelry appraisal

Even as you get your jewelry’s value through an appraiser, it’s crucial to understand that the jewelry appraisal document’s stated value is not a resale value. And therefore, that does not indicate the price you will get after selling it.

In short, what shows on the jewelry Appraisal is a New Replacement Value (NRV) if it’s new or modern jewelry. And if you have an heirloom like antique, you get a Second-Hand Replacement Value (SHRV). The value given is through the valuation of all the jewelry components, then the valuer adds a profit margin for the retail jeweler.

It will show all the items details like the estimated weight of the stone, color, and clarity. If anyone is interested in buying your offering, they will need to see this information. 


Things you need to consider before getting a jeweler appraiser?

Ensure to have the appraisal cost communicated to you before proceeding with the process. 

First, you need to state the reason you’re getting the appraisal. Do you need it for your item resale, or you need a jewelry appraisal for insurance? That will help you take your jewel to the right appraiser. 

If your piece is antique, then a specialist who deals with vintage and antique will be the ideal jeweler because he can tell your item’s rarity or provenance. If you have precious gems like diamonds, a gemologist trained in stone grading is the best appraiser to give accurate details.

The best place to find an appropriately certified jewelry appraiser is by checking some professional organizations with members worldwide, such as:

American Gem Society- You can find this gemologist worldwide, a body certified to assign the value of jewelry with precious stones.

Appraisers International Society-as their name suggests, they cover the world and the US, specializing in all types of jewelry.

International Society of Appraisers– anything that may include antique to ethnic and cultural pieces is what this body tackles. 


How much should you expect to pay for a jewelry appraisal?

Different appraisers may charge by an hour, while others may have a flat fee. It all depends on how complex your item requires. Avoid jewelers charging fees based on your jewelry’s value; that cannot be good, move. 

If you’re lucky, an appraiser may finish the evaluation process as you wait, which is the safest and easiest way to get the job done. 

In most cases, you will have to leave your item behind for evaluation. In this case, the appraiser will give you an intake form to describe the item getting appraised. It will also include a rough value of it, in case it gets lost or damaged.


Why does jewelry appraisal get inflated?

Sometimes appraisals might get inflated by insurance companies and jewelry stores. One may wonder why?  

When it’s insurance doing this, they intend to charge higher premiums to their clients. The jewelers inflate appraisals to manipulate the seller to sell them the piece at a lower price. 

Over-valuing the jewelry intentionally on appraisals is considered illegal under the Federal Trade Commission (FTC). Also, it’s unethical, according to all nationally recognized appraisal organizations. 

Jewelry’s value assigned shouldn’t get inflated and put beyond a fair retail selling price.


 In conclusion, and that’s everything you need to know about the jewelry appraisal. Remember, If you’re getting a jewelry appraisal for insurance ask your provider the precise requirements from their end. Most of them have specific ones, and a certified jeweler has to provide the evaluation for approval.

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