From family heirloom pieces to modern day gems, getting an appraisal is an important part of taking care of items that are precious to you. The most important reason to have an appraisal done is for insurance purposes. In the case that your item is lost or stolen, you will need an accurate appraisal report in order to be compensated with adequate insurance coverage. Other reasons why people choose to have their jewelry value appraised include: estate tax evaluation, value comparison, casualty loss, divorce settlements, donations, loans, and for collateral and bartar purposes.
Many people assume that jewelry is covered under their homeowner’s insurance. Unfortunately, this is often not the case. While it’s important to read the fine print on your individual insurance, in most cases you aren’t covered for loss or damaged jewelry unless it is appraised and scheduled separately.
In the sad case that something precious is stolen for you, an appraisal gives a verified proof of value. If you don’t have a record of an item’s existence, which is part of what an appraisal offers, your insurance company may decide your claim is invalid and refuse to compensate you for your loss.
Think of it this way: an appraisal offers proof of your assets and their value.
What Does an Appraisal Involve?
An appraisal is done by a certified professional who examines your jewelry in order to determine its dollar value. Guida Jewelers has the most knowledgeable and experienced appraisers you can find anywhere. Along with jewelry, Guida Jewelers can appraise diamonds, gemstones, sterling flatware, watches, and more; if you are wondering if your precious item fits under our appraisal guidelines, contact us today.
What To Look for in an Appraisal
Each appraisal should be detailed and include information such as: the content and weight of any precious metal, a description of gems or diamonds (including carat weight, cut, color, clarity, measurements, proportion and finish), an internal diagram showing any inclusions in the case of diamonds, a color photograph, and an appraised value.
Note that appraised values are determined using a computerized networking system that constantly monitors prices in the industry and compares retail values.
Keep in mind that you should be able to remain present during an appraisal and that the appraisal information should be kept confidential in professional settings.
How Often Do You Need an Appraisal?
Since the value of each item is dependent on the economy, and the jewelry market in particular, it is important to keep your appraisal up to date. It’s also important to remember that changes to the condition of your jewelry, which may occur over time, also influence the appraisal. At Guida Jewelers we recommend having your jewelry appraised if you haven’t done so in the past 5 years. It’s even better to have your jewelry appraised every 2-3 years to be most accurate when it comes to current value.
Having a recent appraisal is key to making sure that your jewelry is not insured for less than its replacement value in the case that it is lost or stolen. For example, the price of gold in the early 1970’s was just over $100 an ounce, yet in current times it is worth around $1,800 an ounce; if your valuation is based off of the price of gold from the 1970’s that is the information the insurance company will base their reimbursement off of.
If you are going to be making alterations to your jewelry, such as remounting a stone or modifying the piece in any way, make sure to get the piece appraised again as this can alter its identity as well as change the piece’s value.
A Sale’s Receipt is Not Enough
As mentioned above, the value of jewelry changes over time. A sale’s receipt does not determine the value of your piece. Insurance companies don’t care how much you paid for something initially, they only need to know its current value when it comes to coverage.
Don’t Delay in Protecting Your Precious Items
Schedule your appraisal today with Guida Jewelers and feel confident in knowing that you are securing the future for your treasured items.
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