Five Tips About Jewelry Appraisal

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Five Tips About Jewelry Appraisal

14 June 2017
 Categories: Finance & Money, Articles

Jewelry may be small, but that doesn't mean it's not worth a lot of money. All those precious stones and expensive metals can quickly make a piece of diamond jewelry worth a ton. You want to protect your jewelry, and one of the best ways to do that is with an appraisal. If you are considering an appraisal for your jewelry, check out these five tips.

Use Them to Protect Your Jewelry

You may not think you need to appraise your jewelry unless you're planning on selling it in the near future. However, appraisals are needed if you want to insure your expensive jewelry and diamonds. This is particularly important if you have one or two pieces that are particularly valuable because your standard homeowner's insurance may not protect the piece if it is damaged or destroyed. For valuable jewelry, it's best to have separate insurance to protect it, which is why an appraisal is your best bet. Just make sure you are getting an insurance appraisal. That way, if the item is lost or stolen, you can have it replaced.

Avoid Inflated Appraisals

You love your jewelry, but don't let that go to your head when getting appraisals. For example, if you paid $3,000 for a diamond ring, but the appraiser claims it's worth twice that much, that might be an inflated appraisal. At first, this may seem appealing. If the ring is lost or stolen, you get more money than you spent. Unfortunately, that may not be the case. If the jewelry is protected under your homeowners insurance, the theft or loss may not be covered, and even if it is, you may not get 100 percent of what it is "worth" according to the appraisal. In some cases, you don't even get reimbursed. You simply get a replacement, but thanks to that inflated appraisal, your premiums are nice and high.

Look for Professional Appraisers

Just about anyone can claim they are an appraiser, but you need to search for professional appraisers. These appraisers have the experience and education to actually properly appraise the jewelry. Look for certificates in gemological and appraisal training. If you simply can't find anyone you trust, consider an appraiser who is part of an appraisal association. These associations require their members to uphold professional standards to be members, so you know you are getting someone with the training needed to properly price your jewelry.

Consider a Fair Market Value Appraisal

If you are thinking about getting an appraisal because you want to sell the item, it's best to get a fair market value appraisal than an insurance one. Insurance appraisals are typically higher than fair market value because it's giving a value to that particular used item. This type of appraisal gives you an idea of how much the item is worth in the current market as is. That way, you know you are selling the right for a fair price so no one is getting ripped off, including you.

Update Old Appraisals  

When you get a nice new piece of jewelry, you're excited, and you may even want to go out and get an appraisal right then. However, what happens when the piece isn't so new anymore? That original appraisal might not be correct anymore. The value of precious metals and stones changes, so that diamond ring may be worth more now than in the past. Unless you update your appraisal, however, you'll be getting what is used to be worth. It's best to try and get your precious jewelry appraised about once a year.

Get exactly what you deserve for your jewelry if it is lost, stolen, or sold with an appraisal. They are the best way to protect your investment. For more information, contact a reputable appraiser in your area today. For more information, contact local professionals like Rocky Mountain Gold & Silver Exchange.