When you get a piece of jewelry, whether it was a gift from someone or was something that you have purchased for yourself, you may want to know the actual value that your jewelry has depending on what will become of it going forward.
This is where a jewelry appraisal comes in rather handy.
There are two types of appraisals: free and paid.
Some jewelry stores use free appraisals as a loss leader in order to bring customers in the door with the hopes that they will make a purchase while they are there.
Others may charge a fee for their services and will go into more detail for insurance purposes.
In this article, we will discuss the differences between the two and explain everything you need to know to help you decide which option is best for you.
Table of Contents
What Are Jewelry Appraisals
A jewelry appraisal is a professional document that is made especially for a piece of jewelry for the purpose of determining its authenticity as well as its value.
Along with “free” vs “paid” appraisals, you may have heard of “verbal” vs “written” too.
How about we just set the verbal aside, except for to say that while it can be a starting place to get an idea if something could be worth a lot of money, it is generally not worth the words uttered when it comes down to proving it’s value.
How Jewelry Appraisals Work
An appraisal works by having an expert examine the piece of jewelry in question. They will look at things like the materials it is made from, any signatures or markings that are on it, and they will also research its history.
All of these factors play into what the value of the piece is.
The appraiser will then write up a document that includes all of this information as well as their professional opinion on the value of the piece. This document is what you would use if, for instance, you needed to insure your jewelry.
Your appraisal is supposed to become the proof for what you should be able to recover, depending on what the appraisal indicates your item is worth.
Once you secure an appraisal, pay attention to what is written on it so that you can change any errors if they are on it.
If you want to sell, if you want to cash in on a claim, or if you simply want to know the value of all the items you have when making your Living Trust, then this is where an appraisal shines and does the job.
Keep it in a safe place and try to remember which safe place it is in so that you can convey that to your heirs.
How Long Jewelry Appraisals Take
This depends on the workload of an appraiser. Typically, jewelry appraisals take two weeks from when you dropped your item off. It takes the appraiser much longer to write things up than it does to examine the item.
The Different Types of Jewelry Appraisals
Moving on, you should know that when you go into a Jewelry store and ask them if they “do” appraisals, they may have several types of them in mind and will need to ask you which type you are most interested in.
Here we have several types of jewelry Appraisals to look at.
The reason why there are several types is best explained by the purpose that you will want for each of them.
Replacement Value Appraisal
Replacement value appraisals are intended to get a full replacement market value of your item in the event that it has been lost or stolen or even severely damaged.
This type of appraisal is typically purchased, but it can also be supplied by a Jewelry Store when you purchase a piece of jewelry that is on the higher end cost.
The jewelry store will often send out diamond engagement rings or expensive colored stone jewelry to a third party Graduate Gemologist, whose sole business is that of verifying and valuating diamonds and gemstones.
A Gemologist will do a very lengthy workup on your piece, complete with detailed measurements and pictures, and will also include the market price in your area for replacing or rebuilding the exact same item if need be.
These types of appraisals signify the highest amount of possible replacement because some items may need to be custom built from the ground up, which will cost considerably more due to gold market fluctuations and labor costs.
This type of appraisal will need to be repeated about once every ten years in order to keep up with the market changes.
People purchase these kinds of appraisals when they want to buy insurance for their jewelry so that they will have enough to replace their item in the event of loss or theft.
Fair Market Value Appraisal
This type of appraisal is a written appraisal that will state the present value of your jewelry item in terms of what you could likely get for it if you were wanting to sell it on the open market to a willing buyer.
This appraisal will not be nearly as detailed as the Replacement Value Appraisal is, because it usually represents the condition of the item, and leaves out future market changes.
The appraisal can be for a new item that has a written receipt included and even for used or vintage items.
These appraisals do not generally have pictures and complex descriptions.
People who buy jewelry, whether new or estate, hope to get this type of appraisal with their purchase, and some do depending on the price they paid for their item.
Usually however, they will need to pay a flat fee to have this done from a jewelry store rather than from a Certified Gemologist and the cost can range from $40-60 per item.
It is important to note that some jewelry stores will write their own Fair Market appraisals as a way of inflating the price.
The best thing to do if you want an objective Fair Market Value Appraisal on your jewelry is to find a third party Certified Gemologist in your area that does appraisals for a living so that there aren’t any conflicts of interest.
Liquidation Appraisal
This type of appraisal is also written and is usually desired from people who have inherited jewelry from a family member that needs to be valued and split among others or is needed to provide value for consideration during a divorce settlement.
The cost is usually the same as the Fair Market Appraisal, but the difference is that the person is asking for the value of items to be reflected for being sold very quickly and at liquidation pricing.
The discount in value also is indicative of how little of the item description is necessary, and no pictures are usually included.
What To Look For In An Appraiser
If you want to be certain that the Appraiser is going to be fair in their assessment and grading of your diamonds and gemstones, then you must check out their Credentials and training before using them.
Gemologist Training
The appraiser needs to be a Certified Graduate Gemologist. This is much different than simply taking a few classes and completing them. They must actually hold proper Credentials in their field.
You can check to see if they are a member of the American Gem Society by visiting their website.
The appraiser should also have plenty of experience in the field and you can ask to see references from other clients that have used them before.
Appraisal Training
Has the appraiser completed appraisal training and testing in valuation and appraisal by a recognized association such as the ASA (American Society of Appraisers) or the National Association of Jewelry Appraisers?
If not, then you may not be getting an appraisal that will stand up to scrutiny by a professional buyer or by your insurance company.
You can check to see if the appraiser is a member of either of these two associations by visiting their websites and searching for the individual’s name or the business name.
The Difference Between Free vs. Paid Jewelry Appraisals
A free Appraisal is likely not going to be done by a Certified Graduate Gemologist.
A free Appraisal is more likely to be included much more like an itemized receipt would be for a sale or is written up like a “Certificate of Authentication” which simply says that the item is authentic, but does not break down and itemize the components for grading and value.
One caveat: A free Appraisal completed by a Certified Graduate Gemologist may actually accompany an expensive piece of jewelry that you buy, because as prices go higher it becomes more necessary for the jewelry store who is selling it to be able to prove the value from a third party Graduate Gemologist.
A paid Appraisal can be yours for the purchase of it.
The difference is that it is far more likely to be done by someone who is Certified and skilled in appraising and who will dive deep into the details of your item.
A paid Appraisal is necessary for insurance purposes or even for being able to show proof of value for selling items to another person.
What To Expect From A Free Jewelry Appraisal
Many jewelry stores offer free appraisal services that are loss leaders in their industry, that is, they give you a free appraisal with the hopes that you will buy something from them.
A free Appraisal is likely going to be done by a non-certified individual. This means that they may not have the skills or training necessary to properly appraise your jewelry. The Appraisal is likely going to be quick and without much detail.
You probably won’t receive any type of certification or documentation with a free Appraisal.
If the appraisal is verbal only, then it is essentially meaningless and you have no way to prove the value of your jewelry if you need to.
What To Expect From A Paid Jewelry Appraisal
A paid Appraisal is likely going to be done by a certified individual who has the skills and training necessary to properly appraise your jewelry.
The Appraisal is likely going to be thorough and include plenty of detail and may include pictures or other documentation. You will likely receive some type of certification or documentation with a paid Appraisal that you can use for insurance purposes or to sell your jewelry.
The Costs of Paid Jewelry Appraisals
The cost of a paid Appraisal varies depending on the piece or pieces being appraised, but typically starts around $100 for a single item and can go up from there.
Some appraisal companies charge by the hour, so if you have multiple items, it is likely going to cost more. Appraisers may also charge extra for things like travel costs if they need to come to you to appraise the jewelry.
When Should You Use a Free vs. Paid Appraisal?
If you just need a quick Appraisal for your own personal knowledge, then a free Appraisal is likely going to be sufficient. A free appraisal could also help indicate if a piece of jewelry is worth appraising further with more formal documents.
However, if you are looking to sell your jewelry or you need an Appraisal for estate planning purposes, then you are going to want to use a paid Appraisal from a certified appraiser.
Are Paid Jewelry Appraisals Worth It?
Yes.
Without them, you are unable to prove that the jewelry you own is truly worth what it would cost to replace it should something happen to it or in the event that you want to add and divide up the jewelry value that is in your Living Trust.
Appraisals are also critical should you want to insure your jewelry for its full value.
Homeowners insurance typically only covers a fraction of the actual value and you will need to purchase a rider or a separate policy to insure the full value.
A police report will itemize the theft and general description of the item(s), but a written Appraisal will determine the serious nature of the crime, the value of those items, and will show the finer details so that a claim can be validated and substantiated.
FAQ’s About Jewelry Appraisals
Should You Get Your Jewelry Appraised Before Selling?
Absolutely!
People want proof that what they buy is real, and they also want some kind of proof that the value they will be paying is far worth the price.
An appraisal will seal the deal faster and more permanently that if you did not have one because how else is a person to know if what you claim is true?
Are Jewelry Appraisals Free?
Sometimes jewelry appraisals can be free.
You can walk into any jewelry store and tell them that you want an appraisal done on an item. They will ask if you want a written or a verbal appraisal. You can get them to give you a cursory idea about the item and its value verbally to see if it is worth taking the next step to buying an appraisal.
This depends on the reason(s) why you want it in the first place.
As stated above, sometimes they are free, but only if you are spending a lot of money for an item…the rest of the time they will cost you under $100 for one that is not too complex.
Can You Appraise Jewelry Yourself?
Sure you can, and you can do your own dentistry and surgery too.
Appraising your own jewelry, even if you own your jewelry store, is a bad idea and shows a tremendous conflict of interest and bias.
Insurers know this and wont accept self-appraisals.
We have seen this phenomena happen wherein a person who owned his own jewelry store in another town had taken some gemology classes and had gotten some “certificates of completion” for them and put his framed certificates in plain view.
He appraised his own inventory and inflated the value terribly.
Those who purchased from him would think that they were getting spectacular jewelry.
His grading was often inaccurate and was not a reflection of an honest valuation, and his pricing was over the top for the true quality and market.
Over some years, this all blew up in his face as customers were unable to collect on the inflated amounts from their losses from insurers, or when they were laughed at by other jewelry stores when they tried to consign or sell their “expensive” items to them.
It is very suspect to appraise your own anything. Pay the money and get a third party to do that for you if you want to keep your business integrity intact.
Final Thoughts
There are a few reasons why someone might choose to get a paid appraisal rather than a free one. The most obvious reason is that a paid appraisal is much more likely to be done by a certified and skilled appraiser, whereas a free appraisal may not be as in-depth.
Additionally, a paid appraisal can provide more details about the item being appraised, which can be helpful if you are trying to insure the item or sell it.
Finally, a paid appraisal will usually come with a document that can be used as proof of value, whereas a free appraisal may not. Ultimately, the decision of whether to get a free or paid jewelry appraisal is up to you and depends on your needs.