The Role of Appraisals When You Sell Your Jewelry
The importance of professional appraisals cannot be overstated when you sell jewelry to determine its value for insurance and other purposes.
More people who own jewelry are getting their jewelry appraised for consultation and legal purposes, and because of that, the global jewelry appraisal market is projected to grow by 2029.
While online estimates may offer convenience in selling jewelry, the uniqueness of each piece necessitates the expertise of appraisers for an accurate valuation.
Right here at Buckhead Jewelry Appraisers, our owner, a G.I.A. Graduate Gemologist, leads with 35 years of experience in professional jewelry appraisals.
Overview
In this guide for jewelry appraisals, we’ll cover:
What jewelry appraisals are and why they’re essential.
The different types of jewelry appraisals and how they work.
Tips and other best practices for a successful appraisal process.
To get started selling your jewelry with the best jewelry appraisal options, read below.
What is Jewelry Appraisal When You Sell Your Jewelry?
To determine the monetary value of a piece of jewelry, a trained expert conducts a formal evaluation that frequently includes photos.
The appraised value represents the highest possible value for insurance or tax purposes and may differ from the selling price.
During this process, a professional appraiser carefully examines various factors that contribute to the overall value of the jewelry. These factors include:
the quality and value of the materials, metals, and gems
weight
location (which might affect its market value and can vary based on regional demand and market conditions)
brand reputation or designer associated with the jewelry
Importance of Appraisals When Selling Jewelry
Expert appraisers assess brand authenticity and components such as metals and gemstones. Appraisal certificates confirm a piece’s authenticity when you sell your jewelry.
Crucial for fair selling, legal purposes (e.g., divorce, donation), and insurance valuation. And even if you’re not selling your jewelry, appraisals remain beneficial as they identify wear, tear, or damage. This information aids in preemptive repairs to maintain jewelry condition and helps in setting realistic selling prices.
Jewelry Appraisal vs. Selling Price
The appraisal value is determined by the appraiser at a given time point, while the selling price is decided by the seller.
Selling price factors include labor cost, item brand, and market value.
Appraisal vs. Market Value of Jewelry
Market value reflects demand and is subject to industry trends.
The appraised value, as assigned by an appraiser, is not directly linked to market fluctuations.
Appraisal vs. Resale Value of Jewelry
The appraised value is higher and is often considered inflated for insurance purposes.
The resale value is lower, accounting for wear and tear over time.
When to Have a Jewelry Appraisal
While not mandatory, getting an appraisal is beneficial for insurance and understanding the item’s worth. It provides peace of mind, especially if the jewelry is to be kept while insured, and helps set expectations for resale value.
It’s recommended to appraise valuable jewelry every few years (every two to three years), as the value of gems and precious metals fluctuates. So, when you have newly purchased or inherited pieces, appraise them promptly to determine accurate replacement values in case of loss or theft.
Finding the Right Appraiser When Selling Your Jewelry
You will encounter numerous local jewelry stores and individuals presenting themselves as professional jewelry appraisers when you plan to sell your jewelry. Before entering into negotiations when selling your jewelry, verify their legitimacy by asking a few questions first.
A legitimate appraiser will be patient and willing to substantiate their expertise. Here are some inquiries to make:
Certifications
Appraisers holding certifications or titles from reputable national appraisal organizations demonstrate professional competence and adherence to industry standards. These certifications often require adherence to ethical guidelines and ongoing professional development.
GIA Graduate
The Gemological Institute of America (GIA) is well-respected in the jewelry industry, and graduates from their programs are often considered experts in gemology. They likely have a strong foundation for understanding gemstones and their values when you sell your jewelry.
Continuing Education
The jewelry market evolves, and staying current is crucial for providing accurate assessments. Check for appraisers with continuing education certificates or credentials to ensure up-to-date industry knowledge.
Manufacturing Knowledge
Different manufacturing techniques can influence the quality and value of jewelry. An appraiser who understands these nuances can provide a more comprehensive and precise valuation.
Recommendations and References
Independent insurance agents regularly work with appraisers in the context of insurance valuations. Their recommendations can offer valuable insights into an appraiser’s reputation, reliability, and ability to provide accurate assessments.
Understanding Jewelry Appraisal Types
Before agreeing to an appraisal, discuss with an independent insurance agent and the appraiser to determine the type you need:
Fair Market Value
It is helpful to understand the potential selling price if you were to sell the jewelry.
It reflects the current value of jewelry based on its condition, represented as a selling price. Through this, it will be easy to determine the amount you could realistically sell your jewelry for in the current market.
Replacement Value
For insurance purposes to help determine the coverage needed to replace your jewelry in case of loss.
If you’re concerned about replacing your jewelry in case it’s lost or stolen, this is the appraisal you’re looking for. It indicates the realistic dollar amount needed to replace your jewelry with a similar item.
Liquidation Value
If the jewelry has to be sold under less-than-ideal circumstances (e.g., divorce settlement, estate liquidations),
Given the situation when you sell your jewelry, the liquidation value is more of a conservative estimate and, therefore, usually lower than the other appraisals.
Sell Your Jewelry with Accurate Appraisal
Once you’ve decided to sell your jewelry, come visit Buckhead Jewelry Appraisers. We provide detailed written jewelry appraisals and consultations that are accurate and reliable for your insurance, estate planning, resale, or legal needs.
Schedule your appointment now for a personalized and trustworthy experience.