Frequent question: Why do people appraise jewelry?

By far, the most important reason is for insurance purposes. Over the years, the value of your jewelry and gemstones can fluctuate greatly. … That means you risk a substantial financial loss if your jewelry is lost, stolen or damaged. For your protection, we recommend you have your jewelry appraised every two years.

Do jewelry appraisals mean anything?

A Fair Market Value appraisal gives you an estimate of what you would receive if you sold your jewelry. It takes into account the condition of the jewelry, and is meant to give the seller a feel for how much they could get from a willing buyer. This amount will be lower than a Replacement Value Appraisal.

Why is jewelry appraisal higher than purchase price?

The Jewelry Appraisal vs the Selling Price

The largest factor of value depreciation relates to where the diamond jewelry was purchased. Larger brick and mortar retail stores have much higher fixed costs than pure online players, and as such need to command higher margins.

Should I get my ring appraised before selling?

Most sellers ask us if we need to see the appraisal before we make an offer on the diamond. … Appraisals are necessary and often required for a Will or for insurance purposes. When it comes to selling a diamond or selling an engagement ring, there is a replacement value (appraisal) and a resale value.

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What do appraisers look for in jewelry?

What do I look for in an appraiser? Gem and jewelry appraisers should have both gemological and appraisal training. They should also have a thorough understanding of how jewelry is made. If an appraiser says she is “GIA certified,” proceed with caution.

How long does a jewelry appraisal last?

Insurance companies and appraisers recommend updating jewelry appraisals every two to three years.

Do jewelers do free appraisals?

Often, a local jeweler, gold or diamond exchange or pawn shop near you will provide an appraisal for free, especially if you are a regular customer. Keep in mind that an appraisal is often inflated above what you might pay for the same item at a jewelry store, but can be useful for insurance or tax purposes.

How long does jewelry appraisal take?

How long does a jewelry appraisal take? There are many factors that determine how long it will take to get your jewelry appraised. In general, it takes about 7-10 days to get a proper appraisal. The jeweler or appraiser needs to do quite a few things before creating the appraisal document.

Why is diamond resale value so low?

The reason resale prices for diamonds are so low compared with retail prices is that jewelers buy diamonds in bulk, at wholesale prices, which are much lower. … There is no reason for a jeweler to pay the same price for your diamond when such a stone can be bought for much less from a diamond dealer.

Why are diamonds appraised for more?

The higher the quality of the stone, the higher its valuation will typically be. Because diamond prices can increase exponentially with carat weight and other factors, what seems like a small difference in quality can often translate into a large difference in value between two diamonds.

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Do diamonds sell for appraised value?

The Value of a Diamond

This is why people often look to their jewelry appraisal for the value, however, appraisals are mostly done for insurance purposes and unfortunately, the truth is, you can NOT sell your diamond for the face value of an appraisal.

How do I know if my jewelry is valuable?

We recommend taking the piece to a jeweler to be tested. They will have professional tests that will determine whether your jewelry is real as well as the purity of the metal itself. A certified appraiser will be able to provide the value of the piece as well.