Understanding Jewelry Appraisal
A Guide to Different Types of Value
Appraisal is a process. Ever wondered what your precious jewelry is truly worth? The answer isn’t as simple as a single number. Jewelry value depends on a variety of factors, and the type of appraisal you get will determine what that value is for.
This guide explores the different types of jewelry appraisals and what they tell you about your piece.
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Don’t Be Fooled by “Appraised Value”
The term “appraised value” can be misleading. An appraisal should clarify what the value is based on and for whom. Here’s why understanding the different appraisal types is crucial:
The “dying man in the desert” scenario: Imagine a scorching desert. Water, normally inexpensive, becomes priceless to someone desperately thirsty. The same logic applies to jewelry. Its value depends on the situation and who’s willing to buy.
Fabergé vs. a rock: A gemstone crafted into a Fabergé egg holds much more value than the same stone unmounted. The artistry and history behind the piece contribute significantly.
Common Types of Jewelry Appraisals:
Insurance or Replacement Value: This is the most common appraisal type. It estimates the cost to replace your jewelry with a similar item, brand new, at retail price. This value is typically higher than what you might sell it for because it reflects replacement costs and jeweler markup.
Fair Market Value: This is the estimated price a willing buyer would pay to a willing seller in an open market, assuming both have knowledge of the item. This value is often used for tax purposes, charitable donations, or dividing assets in estates or divorces.
Resale Value: This appraisal considers the price you could realistically expect to receive if you sold your jewelry to a dealer, private buyer, or auction house. Resale value is usually lower than replacement value because it considers factors like current market trends, the piece’s condition, and marketability.
Estate Value: This term can be confusing. It doesn’t necessarily reflect a professional appraisal, but rather an estimated price a secondhand dealer might offer or what an heir might receive during estate distribution.
Bids: Offers you receive from pawn shops or similar buyers aren’t appraisals but rather bids based on their specific buying practices and profit margins.
Choosing the Right Appraisal:
The type of appraisal you need depends on your purpose. Here’s a quick guide:
Insurance: Get a replacement value appraisal.
Taxes or Donations: Opt for a fair market value appraisal.
Selling your jewelry: Consider a resale value appraisal.
Remember: An appraisal should clearly explain the reasoning behind the valuation and the specific type of value being determined. This empowers you to make informed decisions about your precious jewelry.
We maintain a modern gem lab equipped with the finest instruments available. Our lead jewelry appraiser, Neil Beaty, is an expert in the field and you can be confident that the documentation you receive is an accurate representation of the value of your item.
- The Purpose of Appraisals: Understanding the different reasons why you might need an appraisal.
- Gemstone Identification and Valuation: Delving into the factors that determine a gem’s value.
- Understanding Provenance: Exploring how a piece’s history can add value.
- The Appraisal Process: What to expect from a professional appraisal.
- Finding a Qualified Appraiser: Identifying reputable appraisers with the necessary expertise.
- Types of Appraisals: Distinguishing between replacement value, fair market value, and others.
- Beyond Diamonds: Appraising colored gemstones, pearls, and other materials.
neil@americangemregistry.com
303-223-4944
QUALIFICATIONS OF THE APPRAISER: NEIL BEATY GG (GIA) ICGA
(AGS).Accreditation & Professional Memberships:
Independent Certified Gemologist Appraiser, American Gem Society, 2006-Present
Graduate Gemologist, Gemological Institute of America, Carlsbad CA. 1996
Accredited Gem Lab, American Gem Society, 2006-Present
Certified Gemologist Appraiser, American Gem Society, 2006-Present
Accredited Senior Gemologist,
Accredited Gemologists Association, 2001-present.
Related experience
American Gem Registry, Inc. and American Gem Registry, llc, Denver CO 2001-present.
Appraisal and gemological laboratory.
USA Jewelry Brokers, llc, Denver CO, 2011-present. Consultation. Jewelry brokerage.
Aegis Goldsmiths Ltd., Denver CO, 1991 – 2003. Custom jewelry design, repair, and appraisal.
Leavitt-Beaty Gallery, Ft. Collins CO1998-1999. Retail jewelry sales
Banks Jewelers, Boulder CO, 1981-1982, Custom jewelry design & repair,
Neil T. Beaty, Goldsmith, Boulder CO 1978-1991. Custom jewelry design & repair.
About Our Credentials
Graduate Gemologist (GG), by the Gemologist Institue of America (GIA)
In the US, the most widely recognized gemological credential is the Graduate Gemologist (GG) Diploma issued by GIA. This is a college that teaches gemology. They have quite a few competitors who also do an excellent job but you should be careful to understand any credential that you are relying on. GIA also has several other programs that can result in claims like “member of the GIA alumni association” or “GIA Graduate”. Pay attention. A “GG” after their name is a good sign, as is FGA, FGAA, and FCGmA. If you don’t recognize it, ask about it before you hire them. They should be happy to explain.
But being a Graduate Gemologist (GG) is not enough for a fully qualified jewelry appraiser… it’s not even an “appraisal” credential.
Valuation and Appraisal
An Appraiser assigns value and “provenance” to a given piece, in a given market, at a certain time.
Provenance is the history and story of the item in question, or the chronology of its ownership… none of which can begin to be guessed at until you’ve identifed the gemological properties of the item in question. (This is why jewelry appraisal requiers two different certifications.)
Valuation and appraisal theory are taught by several different schools including:
the American Society of Appraisers,
the International Society of Appraisers,
the National Association of Jewelry Appraisers,
the American Gem Society,
and several others. All of these have good programs. There are probably more that I don’t know about. The important thing here is to understand that what is being taught in these programs is not the same as what is taught in the Graduate Gemologist (GG) or FGA programs.
You want a jewelry appraiser that has both, (like me).
What is an “Independent Appraiser”?
Independence is a mixed bag. Here’s the problem. If you want a highly trained professional who makes a living off of the appraisal fees, you can expect to be charged for their work. Some actually charge quite a bit. But if you want a fair an “independent” evaluation of the value of your item, it is worth the cost.
An independent jewelry appraiser is not in the business of buying or selling jewelry and is not otherwise involved in the transaction in any way (like they are not employed by, or are related to, either the buyer or seller). It’s not a second opinion if it comes from the same source as the first.
If the appraisal is just a few sheets of additional paper that accompany the sale with a description and a made up number, they are usually “free,” or at least, very inexpensive. It goes back to deciding what you want to know. The same is true of authentication reports. If you require a report from an independent lab (like GIA) then the stone will cost a little bit more and their is a fee that is built into the price of your stone. If the word of the seller is sufficient, they will usually be happy to offer their opinion cheaply. For most people seeking jewelry appraisal services, “independence” is worth the extra cost.
QUALIFICATIONS OF THE APPRAISER: NEIL BEATY GG(GIA) ICGA(AGS).
Accreditation & Professional Memberships:
Independent Certified Gemologist Appraiser, American Gem Society, 2006-Present
Graduate Gemologist, Gemological Institute of America, Carlsbad CA. 1996
Certified Gem Lab, American Gem Society, 2006-Present
Certified Gemologist Appraiser, American Gem Society, 2006-Present
Accredited Senior Gemologist,
Accredited Gemologists Association, 2001-present.
Education:
Gemological Institute of America, Carlsbad CA,
Graduate Gemologist,1996
Advanced Gemology, 2001
Advanced Pearl Grading 2004
Appraisers National Association, Irvine CA
Uniform Standards of Professional Appraisal Practice (USPAP) 2004
International Society of Appraisers, Seattle WA
Core Course in Appraisal Studies 2003
American Society of Appraisers, Herndon VA
Introduction to Personal Property Evaluation PP/201, 2004
Personal Property Valuation Methodology, Research & Analysis PP/202, 2004
Appraisal Report Writing seminar, 2004
Master Gemologist Appraiser program PP/ 206 2005
Personal Property Valuation PP/203 & PP/204, 2005
USPAP 1997, 2011, 2013, 2015
National Association of Jewelry Appraisers
Grading Synthetic and Treated Diamonds, 2004
American Gem Society
Advanced Personal Property Appraising 2005-2006
Registered Jeweler program, 2005
Master Valuer Appraiser Program, Pearland TX
Master Valuer program, 1998
University of Colorado, Boulder CO,
Bachelor of Science, Accounting, 1984
University of California at Irvine, Irvine CA
Appraising for Charitable Contributions, 2005
Related experience
American Gem Registry, Inc. and American Gem Registry, llc, Denver CO 2001-present.
Appraisal and gemological laboratory.
USA Jewelry Brokers, llc, Denver CO, 2011-present. Consultation. Jewelry brokerage.
Aegis Goldsmiths Ltd., Denver CO, 1991 – 2003. Custom jewelry design, repair, and appraisal.
Leavitt-Beaty Gallery, Ft. Collins CO1998-1999. Retail jewelry sales
Banks Jewelers, Boulder CO, 1981-1982, Custom jewelry design & repair,
Neil T. Beaty, Goldsmith, Boulder CO 1978-1991. Custom jewelry design & repair.
Schedule an Appointment
By Appointment Only.
5610 Ward Rd #300
Arvada, CO 80002
neil@gemlab.us
303-223-4944
Your use of this email constitutes agreement to be contacted by American Gem Registry regarding your query only.
Seeking a qualified and reputable appraiser is essential. Look for appraisers affiliated with professional organizations like the American Society of Appraisers (ASA) or the National Association of Jewelry Appraisers (NAJA). They adhere to strict ethical standards and possess the necessary expertise to accurately assess your jewelry’s FMV.
The appraisal process typically involves a thorough examination of the piece, including:
- Visual inspection to assess materials, workmanship, and condition.
- Weight and measurement of precious metals and gemstones using specialized tools.
- Gemstone identification using sophisticated equipment like a refractometer or diamond grading tools.
- Review of any existing certificates or documentation for the jewelry.
Following a comprehensive analysis, the appraiser will provide a detailed report outlining the FMV of your jewelry, supported by clear justifications based on the factors mentioned above.
Resale Value: The Reality of Selling
While FMV offers an objective valuation, the price you can realistically expect when selling your jewelry might differ. This is where Resale Value comes into play. Resale Value reflects the actual price you could likely receive from a dealer, private buyer, or auction house. It’s generally lower than FMV due to several factors:
- Market Volatility: The jewelry market, like any other, experiences fluctuations. Diamonds, for example, may hold value well, but the price you fetch might be lower than its FMV due to current market trends.
- Profit Margin: Dealers and auction houses need to factor in their profit margins when buying your jewelry. This translates to a lower selling price compared to the FMV.
- Condition and Marketability: Like with FMV, the condition of your jewelry significantly impacts its resale value. Additionally, highly specialized or unique pieces might struggle to find buyers, further lowering the resale price.
- Negotiation: Selling jewelry often involves negotiation, particularly with private buyers. Your final selling price might be lower than the initial offer, depending on your negotiation skills.
Strategies for Maximizing Resale Value:
While FMV sets a baseline, understanding resale value is crucial for realistic expectations. Here’s how to potentially increase the resale value of your jewelry:
- Maintaining Good Condition: Regular cleaning and professional care can help preserve the luster and integrity of your jewelry, leading to a better resale price.
- Acquiring Documentation: Original receipts, certificates of authenticity, or gemstone grading
Schedule an Appointment
By Appointment Only.
5610 Ward Rd #300
Arvada, CO 80002
neil@gemlab.us
303-223-4944
Your use of this email constitutes agreement to be contacted by American Gem Registry regarding your query only.
Offices Located in Arvada, Colorado
My office is located in Arvada, Colorado, a suburb of Denver, but I have many customers in the surrounding suburbs and even states! It’s worth the drive from as far as Cheyenne, WY, Colorado Springs, or even Pueblo for an independent appraisal.
I have top qualifications, I charge reasonable and transparent prices, and I do the work while you wait and while you watch if you like.