Should I get My Jewelry Appraised?

The value of your jewelry is an important thing to consider. After all, that's how you'll know how much to report for insurance purposes. Even if you have receipts for the purchases, the price of precious metals and gemstones fluctuates so the only way to truly establish value is with a jewelry appraisal. 

This enables you to report the correct value to your insurance company and ensures that your precious gemstones are covered in case of loss, theft, or damage. Whether it's an engagement ring or something else that has sentimental meaning, allowing a qualified and reputable gemologist have a look at the item is very sensible. Keep reading to find out everything you need to know about jewelry insurance and appraisal and why they are so important. 

Who Should Do a Jewelry Appraisal?

When you want to have a piece of jewelry appraised, it's best to have it looked at by an experienced and trained jeweler. Not only will this give you peace of mind that you have the view of a professional, but it also provides some assurance that you're getting a fair replacement value for your diamond engagement ring or another piece of jewelry. 

Rather than going to your local jewelry store, consider having your appraisal done by a trained expert so that you receive an accurate valuation for your insurance policy. A few organizations have some of the most well-trained staff for helping with a jewelry appraisal for insurance. 

Look for someone who has been trained by the National Association of Jewelry Appraisers, the Gemological Institute of America (GIA), or the American Gem Society. This will tell you that the jeweler knows what to look for and can give you a fair market value to report to your insurance company. 

How Often to Have Jewelry Appraised

A jewelry appraisal is not a one-time thing. Because the appraised value may change, based on market value, it's a good idea to have your pieces looked at every two to three years. This way, the appraisal can reflect fluctuations in the value of your gemstones and precious metals. If you then do have to file an insurance claim, you will be properly compensated for your loss or damage. 

Options for Insurance Coverage

There are a couple of ways of insuring your jewelry. One is to add the pieces to your homeowner insurance policy or your renter's policy by adding a rider. You might also consider buying insurance that is specific for jewelry. 

Before you decide which is best for your needs, be sure you read through the policies and make comparisons based on coverage and pricing so that you can choose the one that works best for your purpose. 

Take the time to do your research. Your jewelry is valuable and it means something to you so you want to make sure it's adequately covered just in case anything happens. 

Understanding Your Jewelry Appraisal

While you should be able to trust the appraisers looking at your jewelry, it's a good idea to know what to expect from the process. Before you have an appraisal performed, let your expert know what the purpose is. Perhaps you simply want to know the value appraisal. Or maybe you need to know the resale value because you want to sell the item(s). This is something that might happen with antique jewelry that you've inherited, but don't want to keep. 

Because most jewelry appraisals are for insurance reasons, we'll focus on that here. The goal is to determine the retail replacement value of the piece, should it need to be replaced for any reason. 

If you purchase an item in a jewelry store, chances are that the staff will do an appraisal for you. However, you may want to have it appraised by one of the graduate gemologists discussed above as well. When you have future appraisals, you may want to seek an expert from the above-listed organizations, rather than simply taking it to the closest store for an appraisal. 

Types of Appraisals

As mentioned above, you may seek appraisal services for insurance reasons, but you may want to know the value of your items because you want to sell them. Getting an accurate appraisal is important in both cases. 

One type of appraisal is a fair market value appraisal. In this case, valuation is determined as the cost for one person to sell the piece to another person, in which both parties are willing participants. This type of appraisal may be done during an estate sale or donation to a charitable organization. This value may be lower than the actual replacement value of the piece. 

The other kind of appraisal is called an immediate liquidation value appraisal. In this case, the value will be lower because there's a need to be rid of the item quickly. One example of this is getting a ring appraisal after a divorce. It might also happen when a value is needed for estate liquidation. 

And of course, there's always the option to have your jewelry appraised so you know what it would cost to replace it if anything happens to it. Whether it's diamond jewelry or something else, an appraisal provides peace of mind, whether you're planning to keep the piece forever or you might decide to sell it someday. 

What to Expect After an Appraisal

The result of the appraisal is a grading report that includes a detailed description of the item and its value. That will include the total carat weight, color, type of metal, clarity, and cut. If you're having your piece insured, this is the information you'll share with your insurance company so that you can choose the appropriate level of coverage. 

You should get a new report each time you have an appraisal.

Jewelry Appraisal Cost

Rather than charging an hourly rate, there's usually a flat fee for appraising jewelry. The cost will vary from place to place, but you can generally expect to spend between $50 and $150 for one item. You can sometimes get a discount for having additional items appraised at the same time.

For that reason, you may consider having all of your jewelry appraised every couple of years, at the same time. Not only will this save time, but it can also save on the total cost. Certain items may cost more to appraise if they are antique or have a complicated design.

The Takeaway 

Even though there is a cost attached, a jewelry appraisal serves a good purpose. Not only will it help you get your items properly insured, but you can also be sure you're getting what the piece is worth if you are trying to sell it. 

Take your time finding the right appraiser so that you can be sure you're getting an accurate appraisal value and that you can trust so that your items are properly covered. An appraisal won't take too much of your time but will always be something you'll be glad you had done.