Some myths are so well-known that people believe them even though they’ve been busted by science. Examples include:
Whether buying an engagement ring to pop the question or you’ve inherited jewelry, you need to have it appraised. It’s one of the first steps in getting your piece insured and will save you time and money if you ever need to file a claim.
Myth 1: Jewelry Appraisals Are Free
While many jewelry stores advertise that their items appraise for “double,” it’s not always true. Jewelers often use inflated appraisal values as a selling point to justify high insurance premiums and reassure buyers that they’re getting a good deal.
There are several jewelry appraisals, the most common being an insurance replacement appraisal. This type of jewelry appraisal reflects what it would cost to replace the item brand new and is used for estate planning, tax, and insurance purposes.
In the jewelry world, understanding the truth about jewelry appraisal – can lead individuals to seek reputable services such as jewelry repair in Los Angeles, ensuring their precious pieces are handled with expertise and care.
Jewelry Appraisals should be conducted by a certified gemologist with the appropriate credentials to ensure a thorough, accurate report. Remember, unlike Real Estate Appraisers, Jewelry Appraisers are not licensed, and anyone can claim to be an appraiser without qualifications. To avoid being taken advantage of, look for a GIA Graduate Gemologist with credentials from an Accredited Jewelry Appraisal Organization. This will indicate that they’ve completed education in Appraisal Theory and Methodology, must attend continuing educational seminars regularly, and have their work reviewed by other members.
Myth 2: Jewelry Appraisals Are Unbiased
Jewelers often hear from customers burned by their jewelry appraisal experience. They have had jewelry valued for insurance replacement purposes, ‘new for old,’ and then tried to sell it only to be offered substantially less. Ultimately, jewelry is worth what someone will pay for it.
The sample appraisal shown here was provided to insurance agents and jewelry store owners to demonstrate what a detailed description of jewelry looks like and how they would value it. In this case, the appraiser inflated the valuation and jewelry quality and then re-used the same appraisal for loss claims against several insurers. This kind of fraud can occur when anyone can present themselves as an appraiser without meeting the educational and experiential requirements to be a qualified jewelry appraiser.
Myth 3: Jewelry Appraisals Are Necessary
Whether buying an engagement ring for the love of your life or selling a piece of jewelry you inherited, it’s essential to have it professionally appraised. This will ensure that you get an accurate price and that your item is insured in case of damage or loss.
It will also provide you with peace of mind, knowing that your investment is protected. And while getting your jewelry appraised is less fun than shopping for it, it will give you the information you need to make an informed purchase or sale.
A good appraisal, for instance, Gold ‘N I, will include the client’s name, the item’s description, the date and type of appraisal, and the jewelry’s current market value. It will also mention the appraiser’s qualifications and any other relevant information, such as a photograph of the item. Any appraiser who charges a percentage of the item’s value or suggests that they would purchase your jewelry for a lower fee is operating unethically and should be avoided.
Myth 4: Jewelry Appraisals Are Easy
Jewelry appraisals can be complex, especially when dealing with diamonds and gemstones. Many factors influence resale value, even with a grading report from a well-respected lab. A professional appraiser must consider these when setting an insurance replacement or fair market value. This is why getting your jewelry professionally appraised regularly is essential, as well as ensuring you have a good relationship with your jeweler.
This is not to say that an appraisal should be inflated. Still, it is essential to remember that an insurance replacement valuation will only set the maximum value of your jewelry in a marketplace that reflects the value of comparable goods. This is why getting your jewelry professionally appraised regularly is essential, as well as ensuring you have a good relationship with your jeweler.
Lastly, be very wary of appraisals from a retailer, as these are often inflated in value and jewelry qualities. This can lead to paying an over-inflated premium and may mean your jewelry needs to be more insured in the event of a claim.
For reliable appraisal services and guidance on understanding your jewelry’s value, consider consulting with experienced gemologists who can provide accurate and detailed assessments.