A jewelry appraisal helps to determine the value of your jewelry after an examination of its quality. The assessment captures the item’s description focusing mainly on its measurements, weight, marking, and the materials used to make it. Other features like the quality of the gemstone, how rare the piece is, and the design will also feature.
Appraisals for Insurance
The main reason behind this type of appraisal is to replace a lost item. The appraisal will mostly attract a value equal to the cost of replacing the stolen or damaged item with the exact type of jewelry. The price will be the same as that charged by a jewelry store that regularly sells the item being insured.
Appraisals for Selling
This is where the jewelry is priced at the fair market value. The value is often arrived at based on a compromise between the price tag a seller would be willing to sell the jewelry, and the price the buyer agrees with. Fair market values are often lower than retail replacement values.
In this type of appraisal, the value estimate is usually very low. This is often due to the circumstances of selling, such as loan collateral, estate liquidations, and selling the jewelry as a result of a divorce. The value estimation is often close to wholesale prices.
Some of the important factors to note are that by law, it is illegal to offer an overestimated value on a given piece. The value estimated should not exceed the average retailing price. Also, insurance companies require that appraisals be regularly updated. This is because, over time, the value of precious stones and metals may change.