Jewellery Appraisals and Diamond Valuations

Jewellery Appraisals and Diamond Valuations

WHAT IS AN APPRAISAL?

An appraisal is an opinion as to the authenticity, quality, design and value of a piece of jewellery. Since it is an opinion, backed and supported by training, equipment and experience, it is important to understand that there can be honest variations between competent appraisals.

Most people commonly believe that the declared price valuation is the most important aspect of an appraisal. This is not true! Actually the most important part (and the most protective to the customer) is an explicit description of the jewellery item accurately depicting the design, metal and the grades of the gemstones. This is essential for replacement of the item or settling an insurance claim.

A Jewellery Appraisal is really just a ‘snapshot in time’, taking into account all the above intrinsic factors and applying the current economic factors which prevail. The most obvious and constantly changing factor is the $US as all diamonds, coloured stones and metal prices are sold worldwide in $US. As our dollar becomes stronger against the $US it costs us less to purchase items based on $US. This means that once the intrinsic factors are established by a competent Jewellery Appraiser, the present value can be established at any time in the future using the then current exchange rates, and if an insurance claim is being made then the insurance company has to accept this ‘new’ value. You actually insure an item of certain quality and workmanship, not a specific value. In order to compensate you for a specific loss of an item of specific stone grades the insurance company has to pay out whatever it may cost to achieve those particular criteria. It may well be that as a result of strengthening dollar, the insurance company can replace the item for less than the stated value, but just as easily, if the dollar weakens as appears to be the current phase, then the claim may have to be settled with the insurance company paying out more that the stated value. It is all part of the changing value.

The main point here is the need for an accurate appraisal in the first place, so you have the power to obtain back what is rightfully yours.

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