circajewels.comImage: circajewels.comThis is a commonly asked question that GIA, EGL, or AGS etc. certificate reports do NOT include-the dollar value. 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.
Why get a jewelry appraisal?
If you choose at some stage to sell at auction or otherwise, this appraisal in addition to a grading report will help any specialist or jewelry dealer formulate the resale market value, as outlined further down in this article. White Gold, Blue Topaz and Diamond Bracelet, Ring and Pair of Earclips.
Can I Sell my diamond for the face value of appraisal?
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. This is a misconception. Here’s why..
How do I determine the resale value of my jewelry?
This applies no matter how you resell your jewelry. To determine resale value, you need a specific resale appraisal, which will be an estimate of what a buyer will pay for your used piece in the wholesale market. Or you can get an estimate from a company like Worthy that sells in that market every day.
How much does a jewelry valuation cost?
Hourly rates can range from $50-150 per hour. However, if you plan to sell at auction, a specialist will often provide the valuation for free, as the house will ultimately make a percentage of commission on any items sold. There are also online jewelry appraisal services that provide valuations for a nominal fee.
What are the different types of appraisals?
There are many types of appraisals available, each serving a different purpose such as tax, insurance or resale. All types of appraisals seek to verify the fair market value of an object; as such, the jewelry appraisal needs to be as objective and as accurate as possible. Common types of appraisals include: 1 Insurance Appraisals / Retail Replacement Value Appraisals 2 Estate Appraisals 3 Charitable Donation Appraisals 4 Fair Market Value Appraisals / Financial Planning
What is the most reliable way to obtain an appraisal?
Consulting with certified valuers is the most reliable and accurate way of obtaining an appraisal. Valuers should hold gemmological and diamond grading qualifications from a recognized body such as the Gemmological Association of Great Britain, The Gemological Institute of America or the National Association of Goldsmiths.
How much does a jewelry appraisal cost?
Hourly rates can range from $50-150 per hour. However, if you plan to sell at auction, a specialist will often provide the valuation for free, as the house will ultimately make a percentage of commission on any items sold. There are also online jewelry appraisal services that provide valuations for a nominal fee.
What is the purpose of jewelry appraisal?
All types of appraisals seek to verify the fair market value of an object; as such, the jewelry appraisal needs to be as objective and as accurate as possible. Common types of appraisals include:
What is the difference between NRV and SHRV?
Modern jewelry may receive a New Replacement Value (NRV), while antique jewelry may receive a Second Hand Replacement Value ( SHRV). It is a common misconception that a jewelry appraisal for insurance purposes reveals the item’s fair market value, or the price at which an object would change hands between a willing buyer and a willing seller.
What is diamond grading?
Diamond jewelry grading is the thorough evaluation of the jewel’s stone and its attributes: carat, cut, color and clarity, also known as the “four Cs.”. Gradings are carried out in renowned gemological laboratories like GIA and IGI by certified professionals.
How to get started with appraisal?
A great way of getting started in the appraisal process is to send images to your chosen valuer. The images need to be high resolution and offer details of the piece, ideally using a macro lens setting. Valuers will want to see the piece at different angles in order to determine the age of the item and to identify any damage or previous repairs.
What is a resale appraisal?
Resale Appraisal. When upgrading jewelry or looking to make extra cash, a Resale Appraisal determines the Fair Market Value of the jewelry for the purposes of valuing the jewelry with the intention of it being resold. The jewelry can then be resold again in the trade, or may be sold directly to an end consumer.
How much does an appraiser charge?
Pricing for appraisals varies greatly, and appraisers can charge a flat rate or an hourly rate, usually ranging from $50-$300/hour, depending on credentials and experience.
How does jewelry buying work?
Jewelry buying and selling works in a similar way. The value often depreciates over time, and the retail price initially paid is inflated to cover business expenses: employee wages, rent for the building, marketing, electricity, etc.
What is the most common appraisal for jewelry?
By far the most common appraisal done for jewelry is the Insurance Appraisal, which often first comes into play when buying an engagement ring.
What should the value of a jewelry be similar to?
Essentially, the value should be similar to that of replacing the jewelry with a similar piece of jewelry in a relevant market being sold at the retail price.
Why do you need to get an appraisal done for jewelry?
The reason for this is that different types of appraisals have different values, and if the wrong type of appraisal/value is assigned, it likely will not hold up as a legal document.
What is an appraisal used for?
An appraisal used by adjusters, insurance companies, or the insured party, this type of appraisal is used to assess a lost, stolen, damaged, or destroyed article of personal property. A value is established for the item in its original condition, as well as its current value in its present condition.
What is a diamond certificate?
Diamond certificates are issued by renowned gemological labs, like the Gemological Institute of America (GIA) — the certificates we use for our diamonds. A trained gemologist provides a highly accurate grading of all the characteristics of your diamond, so you can understand the quality of your stone.
What is jewelry appraisal?
A jewelry appraisal is when a professional jeweler examines your rings, necklaces, bracelets, watches, or diamonds to assign a monetary value for insurance or tax purposes. While jewelry appraisals include the weight of the metal and characteristics of any diamonds in your piece (cut, color, clarity, and carat weight) it’s only one jeweler’s …
How much does an appraisal cost for jewelry?
Appraisals usually cost around $100 depending on the piece (but some jewelers charge by the hour so ask first!).
Why is appraisal important?
It’s important to note that while appraisals are great for tax or insurance purposes, the characteristics of your item and the price are often inflated. Why? So insurance can charge a premium, and you’re more protected if your diamond was ever lost or stolen.
Why do you need a GIA certificate for diamonds?
Having a GIA certificate for your diamond gives you more bargaining power when selling jewelry second-hand, and you’ll often get more money right off the bat because the buyer can be confident in the quality of your stone.
How much does it cost to have a diamond graded?
If you have a large, high-quality, or rare diamond, you may want to pay the cost of having it graded by the GIA. The prices vary anywhere from $80 to $300, depending on carat size. Now that you know the difference in appraisals, diamond grading, and resale, you can feel more confident in selling your diamond, gold, silver, or platinum jewelry. Have more questions? Give us a call at 901-324-4009.
Do diamond certificates have a value?
Unlike jewelry appraisals, diamond grading certificates don’t assign a monetary value to your jewelry. However, they’re the most transparent, accurate, and objective tool for determining the market value.
What is a Certified Jewelry Appraiser?
A certified jewelry appraiser is a jewelry appraiser who has earned certification, typically from one of three organizations:
What is jewelry grading?
A jewelry grading or lab report is a much more detailed valuation of a jewelry piece. Experts perform gradings and lab reports at the two premier gemological laboratories:
How long does fog last on a diamond?
If you breathe on your diamond and the fog only lasts for one or two seconds, it’s probably real. However, if the fog lasts for three seconds or longer, most likely it’s fake. The Loupe Test. Most CZ diamonds are identifiable with a jewelry loupe (a small magnifier used especially by jewelers).
What does a gemological report show?
It will outline the cut, clarity, color and size of your stone. Plus, the report will show the authenticity of the metals within the piece.
How long does it take to get paid for diamond valet?
You’ll receive your offer price within ten days, and if you accept their offer, you’ll get paid within 24 hours. There’s no auction piece with The Diamond Valet. They’ll buy your jewelry straight out.
What does the purity stamp on a gold ring mean?
The purity stamp tells you how much gold is in the piece. The imprint usually has a karat number (18k, 10k, 24k) or a purity number that correlates to the karats (999 for 24k, 750 for 18k, etc.). Note that if you have had your gold for a long time, especially rings, the stamp may be partially or fully worn off.
What does purity stamp mean?
The purity stamp tells you how much gold is in the piece. The imprint usually has a karat number (18k, 10k, 24k) or a purity number that correlates to the karats (999 for 24k, 750 for 18k, etc.).
Why Get a Jewelry Appraisal?
What is a jewelry appraisal? Getting a jewelry appraisal serves multiple purposes, each of which speaks to how you deal with your jewelry moving forward. Many people feel that having their jewelry appraised offers security for the future.
Retail Price vs. Appraisal
One thing to keep in mind is that while retail price influences and is reflected by the appraisal, the appraisal does not reflect or influence the retail value.
Diamond Grading Reports vs. Appraisals
In the world of fine jewelry, diamonds are in a league of their own. So much so that diamonds have their own grading system. Diamonds are judged on the four "C’s," which refer to a carat, cut, color, and clarity.
Independent Resale Price vs. Appraisal
Earlier in the article, we discussed that the appraisal could sometimes help establish resale value. While there are certain situations where an appraisal can help during resale, the appraisal is not a bottom line.
Why You Should Get An Appraisal Every Couple of Years
Depending on how long it has been between the original purchase and when you resell the item, you may want to have your jewelry reappraised. It’s typically a good idea to have your jewelry reappraised every 5-10 years to keep up with market value.
Jewelry Appraisal Cost
Any reputable jewelry store should have a jewelry appraiser in-house, or at the very least, an appraiser they trust to do the job. At CJ Charles, we are happy to appraise your jewelry, and often appraisals are free with your purchase.
So, How Much Is My Jewelry Worth?
This is a complicated question. It’s actually three complicated questions: What’s the replacement cost? What’s the market cost? What is the value of the materials it is made of?
Know Your Materials
When you go to sell your expensive jewelry, it’s important to have some basic ideas about the value and quality of the raw materials your pieces are made of.
How Much Can You Really Expect?
The amount you can expect depends on three main factors. The spot price of gold, the karat of the gold, and the weight of the gold. There’s no way to know the exact amount you’ll be paid until you visit a buyer.
What is insurance appraisal?
These appraisals are inflated, and do not reflect the true value of the diamond. You may go to a jewelry store and receive an appraisal at double the price you paid for the diamond. For example, you purchase a diamond ring for $10,000 …
Can you sell a diamond for the face value?
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. This is a misconception. Here’s why..
Does insurance charge for jewelry?
The answer: Both the insurance company and the jewelry store .Insurance companies charge high insurance premiums on items that have a much lower replacement value, while simultaneously, the jewelry store uses these inflated insurance appraisals as a sale’s tactic– one assumes they are getting a fantastic deal on the diamond.
Does an appraisal represent the value of a diamond?
Truth be told, an appraisal does NOT represent the actual value of your diamond. So if you are selling your diamond, you should be realistic with your expectations, as many people are shocked by how little their return on this investment is.
How to calculate the price of precious metals?
The formula used to calculate the price is the metal price (the daily spot price) multiplied by purity (the true noble metal content) times weight (can be in ounces, pennyweights or grams) . The purity is the karat of gold or percentage of noble metal (gold, platinum, silver). 24 karat is pure. 10 karat is 10/24 or .410 gold and the balance of weight is the alloys. 14 karat is 14/24 or .583 gold and 18 karat is 18/24 or .750 gold. Platinum most of the time is 90% pure and 10% alloy. Silver jewelry is usually sterling, which is .925 pure. The three units of weight used with precious metals are troy ounces, pennyweights, and grams. The troy ounce is equal to 20 pennyweights (DWT) or 31.15 grams (learn more about measure precious metal weights ). So here is an example; say the spot price of gold is $300 and a 14K ring weighing 10 grams would work out like this. $300 (spot price) X .583 (the fineness of gold) equals $174.90 per ounce divided by 31.15 (troy ounce to gram) equals $5.63 per gram times our ring of 10 grams equals $56.30. Just remember to subtract some refining cost and profit for the dealer and you can find out the intrinsic metal value for your jewelry.
How to sell jewelry to the public?
Safeguards are critical when selling jewelry to the public. First NEVER, NEVER, NEVER, and NEVER meet an unknown buyer in your house. Personal safety and protection against robbery should be your first priority. If you don’t have a way to meet the potential buyer at a public place, then do not sell your jewelry to the general public. Meet the buyer in a public place like a restaurant or shopping mall. I suggest the buyer’s bank, because if they wish to buy the jewelry they can go and get the cash now and finish the transaction. In addition the bank should have some security if something goes bad.
What does it mean when jewelry is worn out?
Worn out jewelry impacts the value. It is a difficult repair to bring life back into a piece of jewelry. Most worn out jewelry is valued at its intrinsic worth.
How much does a jewelry broker charge?
Jewelry brokers charge a percentage ranging from 10% to 50% depending on the type of service provided. Brokers can assist with a piece going to a top auction house or find a local dealer willing to pay top dollar fast. Some jewelry brokers also act as a dealer and buy out right for an immediate transaction.
How pure is 24 karat gold?
The purity is the karat of gold or percentage of noble metal (gold, platinum, silver). 24 karat is pure. 10 karat is 10/24 or .410 gold and the balance of weight is the alloys. 14 karat is 14/24 or .583 gold and 18 karat is 18/24 or .750 gold. Platinum most of the time is 90% pure and 10% alloy.
What are the determining factors of estate jewelry?
The overview of the determining factors of estate jewelry is style, condition, and intrinsic worth. Remember you don’t get paid for the jewelry in relation to what you paid but the condition and demand when you sell. Clean jewelry shows the item at its best and helps in evaluating the design and gems.
What is estate jewelry?
Let’s start with what determines the value of estate jewelry. Estate is a general term used to describe previously owned. That fact is one of the determining factors. Preowned jewelry by in large is not as valuable as new. Some people will never buy a previous owned engagement set for superstitious reasons.
What is jewelry replacement insurance?
There are two types of jewelry replacement insurance, referred to as Actual Cash Value and Agreed Value insurance. Most people buy Actual Cash Value policies. If you’re one of them, you should know that these policies do not obligate the insurer to pay you the appraised value of your jewelry if it’s lost to theft or fire, but only what it would cost them to replace the item. Why?
What is an agreed value policy?
Only Agreed Value policies guarantee you the full-dollar amount of retail replacement value. These policies, usually more expensive than Actual Cash Value policies, represent an up-front understanding between the insurer and the insured of an exact amount that will be paid in case of loss or theft.
What is actual cash value?
Actual Cash Value is defined by insurers as “actual cash value minus depreciation [wear and tear] and obsolescence [being out-of-date].” The premium is calculated on the degree of risk. Say you have a piece of jewelry worth $5,000. If the insurer must settle in cash, they can pay a lesser amount than the figure on which they’ve based your policy. You heard right. If you have an Actual Cash Value policy, you are not entitled to the full dollar-amount of retail replacement value.
What is the job of insurance companies?
The job of insurance companies is to indemnify their customers if their property is damaged, destroyed or disappears. The term “indemnity” refers to making a policyholder “whole” again in case of loss.
How to determine resale value?
To determine resale value, you need a specific resale appraisal, which will be an estimate of what a buyer will pay for your used piece in the wholesale market. Or you can get an estimate from a company like Worthy that sells in that market every day.
Why is it important to have an accurate and comprehensive identification?
Items must have an accurate and comprehensive identification to optimize their resale value. Many variables contribute to a piece’s sales potential but often the factors that most enhance value are noticeable only to an expert. Clear attractive photographs that show all relevant details are essential to marketing an item effectively.
How often does a replacement value policy need to be adjusted?
However, this means that the policy must be adjusted every two years or so to reflect current retail market value. That entails fairly regular re-appraisal to make sure of accurate re-valuation. In short, Retail Replacement Value is valid only for purposes of insurance.
What is replacement value appraisal?
Many people only know of this one type of appraisal. It produces the highest price for jewelry value. It is a theoretical value based on how much it would cost to replace the jewelry item with a new one.
Why is integrity important in jewelry appraisal?
Integrity and transparency are also crucial to making this process work. For example, if a jewelry item has a replacement value appraisal and that value is used as the estate wholesale value, then there is a clear misuse of the jewelry value which will lead to an inequitable division. How the jewelry value is determined is crucial to the people receiving an inheritance. A full and open disclosure of how the jewelry was valued allows for a fair and smooth disbursement of the estate.
Why is the value of jewelry lower than the value of the estate?
This price will be lower than the estate retail value because of buyer needs to add all the cost of business to sell an item plus some profit. The jewelry needs to be in resalable condition and style. Compared to the estate value at retail, this value is generally easily converted into cash.
What are the standards for jewelry appraisal?
Each standard prescribes a set of guidelines for determining jewelry values. The four standards are: replacement price, estate value retail, estate value wholesale, and intrinsic value. Choosing the correct value standard for the inherited jewelry is critical to an equitable resolution for …
What is estate jewelry at retail value?
The next standard of value has a direct link to the jewelry item. The estate jewelry at retail value estimates the price an item would sell to a used jewelry customer . The word “estate” in this context simply means used or pre-owned.
What are the two important points in jewelry value?
The two important points there are: the jewelry value standard and everyone understanding. If either point is missing, then the equitable division of the jewelry is in doubt. Like most products, jewelry value is not one set number.
What is intrinsic value?
Intrinsic value looks at jewelry as raw materials. The last standard for value of jewelry is the easiest to understand and yields the lowest price. The intrinsic estate jewelry value is how much the raw materials that make up the jewelry are worth. For almost all fine jewelry, it is a combination of the current metal value and gem value.
