If you own gemstones or any other type of ornaments made from precious metals, it is recommended that your valuables appraised at least once every 5 years.
What Does Jewelry Appraisal Entail?
The appraisal process is all about determining and recording the current value and state of jewelry. Appraisals are usually done by professionals with a wealth of experience in handling precious metals.
During the appraisal, your expert of choice will carefully examine your jewelry and record the following:
• The physical appearance of the jewelry
• The materials that make up the jewelry
• The weight of the jewelry
• Markings on the surface of the ornament
• The quality of the gems and any other additional materials on the jewelry
• The rarity of the gems contained in the jewelry
• The quality of the entire ornament
After carefully recording the information above, your appraiser then usually has a responsibility to determine the value of the jewelry based on current market prices.
Top Reasons Get Your Jewelry Appraised
Below are 5 compelling reasons to get your jewelry appraised.
1. To Know The Exact Value of Your Possessions
The jewelry appraisal process is all about knowing the exact monetary value of your valuables. On hiring an appraiser, they will evaluate your jewelry in its entirety, and then based on the final findings; they will provide you with an accurate quote on how much your item can fetch in a fair market sale.
2. For Estate Planning Purposes
During the estate planning process, jewelry is usually counted among the estate assets. If you are seeking to divide your assets fairly according to their value, jewelry appraisal services can come in handy. By understanding the total value of your jewelry, you can ensure that your estate beneficiaries receive fair and equitable shares of your assets.
3. For Insurance Purposes
Insurance policies usually offer protection to an item owner in that they can get indemnified for item value in case it gets lost, is destroyed, or loses value under the circumstances foreseen in terms of the insurance policy.
To take out an insurance policy for jewelry, the item in question must first be appraised to determine its value at current market rates. This usually allows your insurance service provider to set appropriate premiums based on current insurance rates and the value of your jewelry.
4. To Compare Value
The only way you can understand which of your ornaments has the most value is by getting your jewelry appraised.
5. To Get Fair Value When Making a Sale or Purchase
The price of jewelry tends to fluctuate wildly. This is because the value of precious metals and gems depends on several factors, such as availability and market trends.
Before making a purchase or sale of jewelry, it is best to carry out an appraisal to understand the real and actual value of your item at the current moment. If you are using old appraisals, you can end up getting short-changed during a jewelry sale. There are a few reputed stores such as Luriya.com where you can sell your jewelry at a fair market value and can even get your jewelry appraised by an expert for free.
What Are The Most Common Types Of Jewelry Appraisal Techniques
Jewelry can be appraised using different methods depending on the intended end goal of the valuation exercise. Different types of appraisal techniques require different levels of expertise and training. Some of the types of jewelry appraisal methods used today include:
1. Fair Market Appraisals
These appraisals usually reflect what your jewelry would cost if it were sold when no extenuating circumstances are necessitating the sale. This appraisal technique usually takes into account the current state of the jewelry when its value is being determined.
2. Appraisal To Determine Immediate Liquidation Value
This type of appraisal is usually done based on the urgency of the situation to determine how much the jewelry in question would fetch in its current state if it were put under an auctioneer’s hammer at the present moment. This valuation technique is usually used when jewelry has to be disposed of quickly, for example, when a divorce necessitates the sharing of marital assets.
3. Appraisal For Loan Collateral Purposes
This is usually done to determine the value of jewelry that is to be put up as collateral before a loan is issued.
4. Probate Appraisal
If a person dies without a will, but they have estate assets, which include jewelry, the court can order for the jewelry to be appraised and valued. This is what is known as probate jewelry appraisal.
How Much Does Jewelry Appraisal Cost?
There is no standard fee for appraisal services. Some appraisal experts usually charge by the hour; others ask for a flat fee while others will base their fee as a percentage of the overall jewelry value.
Some of the factors that will determine the overall appraisal costs include:
• The fee model used by your appraiser
• The number of ornaments being valued
• The type of jewelry to be valued
• The appraisal method to be used
• The urgency of the job
Factors To Consider When Engaging a Jewelry Appraisal Expert
Though there is no legal standard for the appraisal of jewels, it is illegal to inflate the value of jewelry when carrying out an appraisal.
If you are hoping to get an accurate appraisal that reflects the true value of your jewelry, you should engage an appraiser who meets the following standards.
• They should be registered and certified to offer appraisal services by a reputable organization.
• Ideally, they should have training on how to identify, handle, and value different types of gems and precious stones. Further, the expert should also be well-versed in the techniques used to manufacture jewelry as it will prove crucial when gauging the quality of the jewelry being appraised.
• They should have an interest in further education when it comes to jewelry valuation. This is crucial since this field is dynamic, and trends are constantly changing.
• The appraiser of choice should also have extensive experience in jewelry appraisal. Experienced professionals are more thorough and accurate in their work.
• The expert should be an individual of high repute who is renowned in industry circles for being ethical, dependable, and carrying out appraisals professionally.
• The professional should have a demonstrated ability in appraising the type of jewelry you own.
Keep in mind that the value of Jewelry tends to fluctuate depending on existing market conditions. For this reason, you should get your Jewelry appraised periodically.