How to Make Sure Your Jewelry is Appraised Correctly
Whether you acquired your fine jewelry over time or as gifts, your collection pieces likely have significant emotional worth because of how you obtained them. That said, there are definitive reasons why you will want to separate sentimental attachment from monetary value to ensure protection from significant financial loss.
What is an Appraisal?
An appraisal is a documented opinion that determines the current market value of an asset that can be used to protect owners from significant loss. Appraisers record the quality of craftsmanship, precious gemstone color, cut, and clarity, as well as the weight of metals used to house them. The appraisal that you receive will determine a replacement value, so it is essential that you choose a licensed gemologist who can analyze and grade your jewelry judiciously.
Reasons to Get Appraisals:
- Knowledge of Personal Assets: Fine jewelry adds significantly to personal net worth, and investments can grow exponentially over time into sound financial capital. Guessing at your worth can genuinely undervalue your economic footing, so it is essential to solicit appraisals that provide accurate, up-to-date evaluations that safeguard the equity of your property.
- Insurance: Homeowner and renter insurance policies often do not cover personal assets like fine jewelry. Even if it does, it may be limited in value. Insurance companies issue scheduled property riders that provide secondary insurance coverage for valuable jewelry. Receipts document cost, but the price of precious materials often fluctuate over time. The amount of your rider depends solely on the current value of your assets. When creating a home inventory for your policy, having jewelry appraisals from qualified professionals protect the present value of personal assets.
How To Receive an Accurate Appraisal
Unlike real estate, an asset appraiser is not required to have a license. The appraisers who lack academic or professional training unknowingly underestimate property value because they lack the skills and resources to give such opinions. If you do not know a lot about your jewelry from a commercial standpoint, there is much you can do to make sure you receive an accurate appraisal.
Tip 1: Evaluate Gems and Metal Values Regularly
Appraisals depend on the current market value of gemstones and metals which is why you may face a hefty loss when trying to replace jewelry. If an appraiser lacks such knowledge, it is an indication of being unqualified.
Tip 2: Research the Industry Standards
The National Association of Jewelry Appraisers can help you determine if an appraiser meets a high standard of excellence. The more you know about methodology and Uniform Standard of Professional Appraisal Practice, the better prepared you are when choosing an appraiser.
Tip 3: Licensed Gemologists:
Use a licensed gemologist to establish a monetary value based on a sound market value assessment and knowledge of theory, practice, and procedure. Always ask about the experience and skills a person possesses before allowing anyone to gain access to possessions.
Tip 4: Certified Appraisals
If you happen to file a claim or need a loan, a certified appraisal not only documents the cash value of your item, but it itemizes the grade, color, or condition of your jewelry. For this reason, it is vital to renew an appraisal every two to three years because of how the stock market alternates.
Tip 5: Cost of Appraisals
Be wary of one-price-fits-all appraisers without even knowing what they will be evaluating. Fees typically accrue based on the time one needs to assess and the number of pieces that need appraising. You want to make sure you use the services of a qualified provider that is reputable.
Appraisals allow you a measure of security that if ever you suffer from hardship, you have the financial stability in place to recover from it. The more you know about the process, the more secure your finances will be!