Featured Image Caption: What is a Jewelry Appraisal
You might not be aware of a document known as jewelry appraisal. Well, if you plan to get your fiancée an engagement ring soon, then you need to pay attention. For those lucky enough to inherit a piece of jewelry from their family, they might be wondering if they too need this document. We will answer all these questions in this article, helping you know your precious investment. Now, let us navigate about this appraisal document:
Definition of jewelry appraisal: It is a document written by a certified jewelry appraiser after examining a piece of jewelry. It contains details of your jewelry, including its dollar value.
So, why do you need a jewelry appraisal if you have your receipt?
One of the most important reasons you will have to get this document is when you plan to take insurance for your jewelry. Most insurance providers will ask for this, specifying how it should be presented. They may also request the appraisal from an independent qualified appraiser. And you have to inform your jeweler about the requirements of the insurance provider you’ve chosen.
Most of the appraisals done today are for insurance purposes so that the jewelry owners can get the replacement value of their valuables. That’s why an insurance company must reflect the real cost of the product insured.
However, you will find most retail jewelers with basic appraisal training that qualify to write insurance appraisals for the merchandise they have in their shop. But sometimes that may not be enough, if they are not accredited by authorized entities such as the American Society of Appraisers (ASP), and National Association of Jewelry Appraisers (NAJA).
Another reason is for getting a jewelry appraisal is for tax purposes, and it is crucial to inform your jeweler about this. He will know how to present the document.
Knowing your jewelry value can make you use it as collateral or even sell it when need be. That can be an heirloom or a gift from someone special.
A fair market value will reflect on the seller and a buyer without compelling either party. The price of the product should represent the current condition of the jewelry. It could be for charity or estate appraisal, and they might be lower than most retail replacement values.
Where do you get a jewelry appraisal?
The place where you will buy your piece of jewelry, whether it is online or a retail store, is the same place you need to request the jewelry appraisal: It is also advisable to get it immediately after buying the jewelry. It might even be free of charge. By doing this, you will get the right value for your investment as you never know of any eventuality.
If you choose to do it online, select a reputable seller. And they should be able to present it in a 360-degree video.
When you visit a retail store, there are questions you must enquire first before you give your jewelry for the appraisal. Ask if the appraiser has a gemology certificate from any recognized authority such as the American Society of Appraisers. That qualification is crucial, mainly if your jewelry includes a precious stone such as a diamond. They understand the four Cs of a diamond, and they also know the market price.
Other subjective features they will include are the quality of the stone, relative reality, and overall manufacturer’s quality. On the contrary, if you deal with someone without this knowledge, you will not get your jewelry’s correct value.
Do a research
It’s prudent to always research before selecting an appraiser or any other service. One of the ideal places to check a reputable jeweler appraiser is online. It will help to know what other people are saying about the appraisers. What are their experiences? Were they efficient, fair in pricing, qualified, and any further detail will help you decide?
When you should not consider an appraisal
Now that we know how crucial it is to get your valuable jewelry appraised, then which ones shouldn’t you bother appraising? Any piece of jewelry that will not cause you pain when lost. That means it might not contain any sentimental value, and it is not expensive.
What a jewelry appraisal document should have:
- Appraisal date – due to the jewelry market’s fluctuation, putting the date of your appraisal is extremely important to your product’s value.
- The names and address of the customer – it might also include any other contact detail.
- The reason for getting the appraisal – it is crucial that your appraiser knows the purpose of the assessment to ensure you get the cash or replacement value of your jewelry.
- A thorough description of your product – includes the material, size, and weight of your stone, grade, and color if you have a gemstone. Other specific information of your stone will tell if your gemstone is treated, natural or synthetic.
- Type of setting. That could be the metal paired with your gem.
- Photo images of the jewelry – It precisely shows which product is represented by the appraisal document.
- Jewelry value – regardless of the reason for your jewelry appraisal, the essence is to show its worth. However, an appraiser may present it according to your purpose request. You will get the corresponding value of your piece of jewelry.
- Appraiser’s conclusion – he will include his name and of those he worked with during evaluation. He might also add any other note necessary explaining other conditions of the jewelry.
An appraisal budget
Independent professional appraisers have no pricing standards, which mean their price may vary. However, there are factors they consider, such as their expertise and their education level. The size of the gem will also contribute to the amount charged.
Flat fee; experienced jeweler will quickly examine your jewelry and advise on the total price you will need to pay him.
Hourly charge; some appraisers prefer an hourly fee, especially if the piece is quite intricate. That might take them a lot of time researching some unique and antique jewelry, which cost you.
If you find an appraiser charging you using a percentage value of your jewelry, you should run away. Any professional appraiser cannot use this unethical method of appraisal.
In conclusion, getting informed about a jewelry appraisal puts you in a safe mode and knowing what to expect before buying your sweetheart expensive jewelry. It also helps you to budget accordingly.
By Naman Modi
who is a Professional Blogger, SEO Expert & Guest blogger at Alex and Company. He is an Award-Winning Freelancer & Web Entrepreneur helping new entrepreneur’s launches their first successful online business.