You know how much you paid for your jewelry, but do you know the worth? Appraisals can tell you the wroth of your item in different situations. Appraisals can be used to insure your jewelry or sell it for the right amount. Check out these five important facts you must consider about getting your jewelry appraised.
Appraisals Protect Your Belongings
Most commonly, appraisals are used for insurance purposes. If you have a piece of jewelry that is worth a considerable amount of money, you must get it appraised before you can insure the item. The appraisal will detail the insurance value, but it will also describe the item, including stone clarity, size, color, quality and any other pertinent information. A proper insurance appraisal ensures that if the item is lost or stolen, you will be able to replace the piece with something similar.
Inflated Appraisals Aren't Helpful
It may seem that an inflated appraisal can benefit you. For example, you purchase a ring for $2,000, but it gets appraised at $4,000. If the ring goes missing, you get $4,000 from the insurance company, right? Maybe not. First, if the ring is protected under your homeowner's insurance, it's only covered when it's in your home. If you lose it while on vacation, you're probably out of luck. Even if the item is covered, it may not be covered at 100 percent. If you get jewelry insurance, you're better protected, but some policies only replace the item, not reimburse. Inflated appraisals won't get you more money, they'll just increase your insurance premiums.
Fair Market Value Appraisals Are Another Option
Insurance appraisals can only be used for insurance purposes, but there are other types of appraisals. One common other type is a fair market appraisal. Basically, this type of appraisal details the current price of the item in its current used condition. This way, you know how much someone might be willing to pay for the item. The amount of a fair market appraisal is usually less than the insurance appraisal value. This is because the insurance appraisal determines how much a new and similar item would be worth, but the fair market value determines how much the used item is worth.
One Appraisal Isn't Enough
You may think you can just get your item appraised and be done, but that isn't the case. The price of precious metals and stones changes, so your jewelry may be worth a completely different amount from year to year. This is why it's important to get your jewelry appraised about once a year. In fact, some insurance carriers insist up on it. Failing to get your jewelry routinely appraised means you may not be able to replace the jewelry with something of equal value if it goes missing.
You Need to Find a Professional Appraiser
Last, but definitely not least, you need to find a professional appraiser. Just because someone has a certification or works in the jewelry industry, it doesn't mean they are qualified to appraise an item. Good appraisers have the education to back up their appraisal, which includes gemological and appraisal training. To be safe, it's always a good idea to use someone from an appraisal association because these associations hold their members to ethical and professional standards.
Some types of appraisals may value your jewelry for less than other types, but the theory is the same. Appraisals are used to help you know how much your item is worth, so whether you lose it or sell it, you get the amount you deserve. For more information about appraisals or to have your jewelry appraised, consider a company like The Gold Miner.