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Jewellery Appraisals
"Everything that can be counted does not necessarily
count; everything that counts cannot necessarily
be counted".
Albert Einstein (1879-1955)
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A jewellery
appraiser should have access to
gemmological equipment,
such as an
electronic Diamond tester (pictured)
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I once had a simple 18K yellow gold and Diamond
ring given to me as a 21st birthday gift
from my parents. Unfortunately, my apartment was
burgled. Ouch! Only after losing it did I recognise
the real value of my ring. Jewellery is more than
just a sum of its parts; more often than not, it
also has an emotional or sentimental connection
to the wearer. Thankfully, I had comprehensive contents
insurance, but even still, its loss was heartfelt.
Emotions aside, there are occasions during your
life that you may need to know the value of something
you own. Having your esteemed possessions appraised
will help you make decisions about how to handle
and care for these belongings. While you might want
an appraisal just to satisfy your own curiosity
of what something is worth compared to what you
paid, most people obtain appraisals to document
items for insurance purposes.
There are professional appraisers who will assess
everything: real estate, jewellery, antiques, small
businesses, corporations, cars, trucks, corporate
assets, intellectual properties and even careers.
But what exactly is an appraisal? Simply put, an
'appraisal' is a statement of value and the 'appraiser'
is the person who provides this statement.
A jewellery appraisal is the qualified opinion of
an expert in the field of gemmology pertaining to
the value of the piece described. It first requires
an accurate representation of the item and its components
(the gemstones and mountings), their identification,
as well qualitative grading against international
industry standards. A proper jewellery appraisal
should always be in writing and reflect the
average cost you would have to pay to replace the
item if lost or stolen.
A jewellery appraisal will include a detailed description
of each item, including gemstone measurements, metal
types and weight. It should also include explanatory
notes on terms and abbreviations as well as the
name and professional qualifications of the appraiser,
association memberships, and importantly, the tools
and techniques used to perform the appraisal. For
example, using relative density to calculate a carat
weight estimation of the gemstones set in the jewellery
(click
here for more). Please note that visual
inspection alone is not a reliable way to identify
gemstones. If a 'jeweller' just looks at your jewellery
then immediately starts rattling off a 'verbal'
appraisal, it's probably a good idea to make a hasty
retreat. Also, how much you paid and where you purchased
has no bearing on the appraisal. If the appraiser
is just curious, let them know at the end of the
process.
One of the most common questions I get asked is,
"who should appraise my jewellery?" Like
hiring any professional, whether it is a plumber
or a lawyer, you need to get a handle on their education,
credentials, reputation and experience. Basically,
you need to appraise the appraiser! Start with basic
questions like:
- How long have you been appraising?
As in any field, experience is of vital
importance.
- Do you have any experience appraising
(insert gem here)? Some gemstones are
more marketed than others. Even if the appraiser
is experienced, they might not feel comfortable
appraising some of the more exotic varieties.
- Where were you trained? What are your
qualifications? What professional associations
do you belong to?
- How much do you charge? In my mind,
no trustworthy appraiser charges a percentage
of the item's valuation. It should always
be a fixed fee based on time spent.
- Can you give me a reference?
- How long do your keep a record of appraisals?
- When necessary, do you utilise a proper
modern well-equipped gemmological laboratory?
Often, the whole process of selecting an appraiser
is made simple by the fact that your insurer only
accepts appraisals from selected individuals. Always
check with your insurance company before getting
an appraisal. One of the biggest concerns from a
seller's perspective is the appraiser's independence.
While I prefer truly independent appraisers that
do not buy or sell jewellery, finding one in your
local area is not always possible. In these cases,
select an appraiser that is an appraiser first,
rather than a salesperson who also appraises.
After the appraisal, you'll receive a written report
that is your proof of value. Appraisals sometimes
also include an image of each item. Even if they
don't, it's always clever to take photographs and
catalogue all of your jewellery. In the day and
age of digital cameras, this is a piece of cake.
Keep yours in a safe place, such as with friends,
relatives or your lawyer. Don't just keep a soft
copy in your new notebook computer. Even portable
computers disappear! This is confidential information,
so secure it.
It is also a very good idea to find out from your
insurance company if your jewellery collection is
covered by your household policy. Insurance companies
want to sell premiums and you're the buyer. Remember,
it's not just about your hard earned money, it's
also about protecting the 'emotional value' of what
often is (or will become) a family heirloom.
Replacement value appraisals, commonly referred
to as insurance appraisals, are designed to cover
an individual in the event of loss of property.
They are the cost to buy a new item of comparable
quality in the retail market. These tend to result
in higher valuations for jewellery because they
are intended to provide replacement coverage in
a market that has fluctuating prices. As a result,
updating an appraisal every three years is a good
rule-of-thumb. This will ensure you are not paying
too little or too much in premiums. It is also a
good idea to ask your insurance company how often
they recommend you update your appraisal, and about
the coverage implications of outdated appraisals.
It is the insurer's obligation to replace a lost
item with one of comparable quality, but please
read your policy carefully. Some insurers replace
lost items with new items, while others pay cash.
You need to be sure what will happen if you make
a claim. We all like surprises, but getting one
after the trauma of loss is no fun. Avoid disappointments
by asking questions, so you're always prepared in
advance. |
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