Understanding Jewelry Appraisals
Jewelry appraisals: what are they? Do they matter? Why get one? Our luxury experts explore the role and significance of jewelry appraisals.
Get answers to the following:
- Role of jewelry appraisals in selling diamonds and jewelry
- Why have a jewelry appraisal?
- Does a jewelry appraisal help sell jewelry?
- Jewelry appraisal values
- Quality of jewelry appraisals
- Should I get a jewelry appraisal before I sell my jewelry?
- Can I sell jewelry without any documentation?
What Role Do Jewelry Appraisals Play In Selling Diamonds and Jewelry?
A jewelry appraisal (also known as a jewelry valuation) is a document you may receive from a high end jeweler or jewelry appraiser that describes the item of jewelry being valued and then gives a value that the item should be insured for.
The appraisal should describe the jewelry item stating an estimated diamond weight, an approximate color and clarity of the diamond (which is usually given as a range, for example H-J color, SI1/SI2 clarity etc.), the weight and type of metal the jewelry is made from and any other gemstones details.
Why Have A Jewelry Appraisal?
Sometimes when you purchase an item of jewelry, the retailer may provide this document for insurance purposes. Insurance companies recommend that this document is renewed every few years as the prices of precious metal and diamonds regularly change.
If the item is lost or stolen, the insurance company will use this as proof of ownership and will look to replace the item at the value stated on the appraisal. The jewelry appraisal can cost approximately $100 or a percentage of the value of the jewelry item itself.
Does A Jewelry Appraisal Help Sell Jewelry?
WP Diamonds may ask if you have a jewelry appraisal, simply so that we can provide you with a more accurate initial value. The document will contain some characteristics of the diamond such as an estimated weight and a color and clarity grading. Although this information will not be completely accurate, it acts as a guide
so we can give you an idea of what the value might be before you send the item to us. A jewelry appraisal also makes your item easier to insure during transit and prevents us from receiving jewelry with non-diamond content; this is because the Appraiser will have tested the stone already with a diamond wand to check it is a diamond.
Jewelry Appraisal Values
When looking to sell your jewelry it is very important to keep in mind the value stated on the jewelry appraisal is not a re-sale value and therefore the figure is not an indication of the price you will receive when you come to sell it. The value given on the jewelry Appraisal is a New Replacement Value (NRV)
for modern jewelry or a Second Hand Replacement Value (SHRV) for antique jewelry. This value is for replacing the item if it were lost or stolen and is calculated by valuing the component parts of the jewelry and then adding on a profit margin for the retail jeweler.
Quality of Jewelry Appraisals
The quality of appraisals can vary wildly in terms of the color and clarity grades given. In our experience, they can be one to three grades different for both color and clarity from the accurate grading our experts give at WP Diamonds, and in nearly every case, a jewelry appraisal will give a higher grade than that which is given by an internationally respected lab such as the GIA. Here is a link to our particular survey conclusions on the topic. That means a large potential difference in the price you will be offered from a serious company willing to buy your diamonds. Therefore, you should keep an open mind on price, even if you pay for an appraisal.
Should I Get A Jewelry Appraisal Before I Sell My Jewelry?
A jewelry appraisal may cost around $100 or a percentage of the value of the item, and it will not add value to your jewelry. What it will give you is more detail about the item itself, such as estimated weight, color and clarity of the diamonds. This information will enable you to obtain a price range for your stone. Anyone who is seriously interested in your jewelry will want to see your jewelry before they make an offer to purchase, in order to assess the diamond’s attributes themselves.
Can I Sell Jewelry Without Any Documentation?
WP Diamonds is happy to value any items that you send into us. It is difficult to give you an idea of what the item might be worth before you send it without any documentation, but as soon as we receive your item we will make you a no obligation offer. If you accept, you will have the money in your account within 24 hours; if you choose not to sell, then we will send the item back to you immediately.