Get Your Jewelry Appraised at Good Khin Gems, LLC
In today’s fluctuating economic climate, keeping your jewelry appraised is more important than ever. Whether it’s a cherished family heirloom or a recent purchase, the value of your jewelry can change significantly based on market conditions. At Good Khin Gems, LLC, we understand these dynamics and are dedicated to providing accurate appraisals that reflect current market values. Here’s why now is the perfect time to get your jewelry appraised, especially considering the volatility in gold and diamond prices.
The Current State of Gold and Diamond Prices
Gold Prices: An Overview
Gold has long been associated with wealth and stability, and as we track the recent headlines, it confirms that gold is a hot commodity right now. Various factors are driving gold prices to record highs:
Global Economic Influences: Gold is traditionally viewed as a safe investment during turbulent times. With inflation concerns, geopolitical tensions, and a shaky global economy, investors are flocking to gold to protect their assets. This heightened demand is driving prices upward.
Inflation: As inflation continues to rise, the purchasing power of traditional currencies decreases. Many investors turn to gold as a hedge against inflation, further contributing to the soaring prices.
Response to Activity within the Gold Reserves: Central banks hold significant gold reserves, and their purchasing decisions can impact global gold prices. Low interest rates also make gold more appealing, as it provides a way to preserve value without earning interest.
Supply and Demand Dynamics: Unlike Diamonds, there is no such thing as “Lab-Grown Gold”, which means that the supply of gold is relatively dependent upon the existing supply; this means the amount of gold can’t be rapidly increased. When demand rises, prices naturally follow suit due to limited availability.
Global Political Turmoil and/or Humanitarian Crisis: Events such as wars or sanctions create uncertainty, prompting many to invest in gold as a safe haven, in moderate amounts it is easy to transport in case of evacuation or global relocation. This has historically led to increased demand and higher prices.
Trends: The chart below (from https://goldprice.org/gold-price-history.html) dated September 27, 2024 shows up to date trends in the price of gold over the past 10 years. Analysis shows a drastic overall upward trend in which the gold price per ounce has sky-rocketed from a low of $1050.80 to it’s current price (at the time this was written) of $2672.62. This is an overall increase of over 120%, meaning the price of gold has more than doubled in 10 years!
Diamond Prices: A Contrasting Landscape
On the flip side, diamond prices are currently facing challenges. Reports indicate that diamond trading is not meeting expectations, particularly in markets like Hong Kong and India. Factors contributing to the decline in diamond prices include:
Reduced Rough Inventories: Generally, across the world, some of the countries that import rough diamonds have significantly reduced the number of imports on rough stones. This decline in rough diamonds could lead to an associated reduction of polished inventory, causing the overall attitude in the diamond market to remain observant and cautious.
Market Dynamics: Miners are selling less, and major players like De Beers are maintaining firm prices while allowing for some flexibility. Interestingly, diamonds of lower clarity are selling better than higher-grade stones, suggesting a shift in consumer preferences.
Increased Quality and Quantity of Lab-Grown Diamonds: Due to improvements in technology and a decrease in production costs, lab-grown diamonds are becoming more commonplace and accepted in the general population. While lab-grown diamonds are, intrinsically, less expensive than natural diamonds, they are having a negative effect on the value of the entire diamond market resulting in more and more investors switching from diamond investing to gold.
For more information about Lab-Grown (also known as “simulated diamonds” or “simulants”), be sure to visit our May Blog here: https://www.goodkhingemsllc.com/post/deciding-on-your-diamond-natural-vs-lab-grown
Trends: The chart below (from https://www.pricescope.com/diamond-prices/diamond-prices-chart) dated September 01, 2024 shows up trends in natural diamond pricing of round stones of various sizes. The lines are color coded to represent the stone sizes. The majority of the population are affected by the most significant change on this chart which are in the blue and green lines. The blue and green lines represent round stones of 1 carat or less. Analysis of these trends reveals a decrease in the value of diamonds between 0.5 to 1.0 carats of almost 40% over the past 16 years with the value of other stones fluctuating but generally decreasing.
Additional analysis in the chart below of the current Rapaport Three-Month Performance index for diamonds (from https://rapaport.com/market-comment/market-comment-weekly-diamond-news-september-26-2024-2/) dated September 26, 2024 reveals a 13% decrease in the performance of 1 carat diamonds; that’s in just 3 months! Additionally, they describe an overall decrease for 1 carat diamonds of 23.38% in the past year.
The Importance of Keeping Appraisals Updated
Given the current volatility in both gold and diamond prices, it’s crucial to ensure that your jewelry appraisals are up to date. At Good Khin Gems, LLC, we recommend updating your appraisals every 1.5 years, especially during times of significant price fluctuations. Here’s why:
Accurate Valuation: Jewelry values can change due to economic conditions, market demand, and even trends in fashion. An accurate appraisal reflects the current market value, which is essential for insurance purposes, selling, or estate planning.
Insurance Considerations: If you experience a loss, theft, or damage, having an up-to-date appraisal ensures that your insurance coverage is adequate. If your jewelry is under-appraised, you might find yourself under-compensated in the unfortunate event of a loss. On the other hand, if your jewelry is over-appraised, you are paying unnecessarily higher premiums to your provider.
Investment Strategy: Some people choose to use gold jewelry (or bullion) or diamonds as part of their investment assets. While it might be a part of an overall portfolio, strict attention should be paid to the fluctuations and trends in the market and value. Again, this involves have regular and up-to-date appraisals of your jewelry to ensure that it is valued correctly.
Peace of Mind: Knowing the current value of your jewelry can provide peace of mind. Whether you’re considering a major life change or simply want to keep your financial records in order, having an up-to-date appraisal gives you clarity and confidence.
What to Expect During an Appraisal
If you’re considering an appraisal, you might wonder what the process entails. Here’s a brief overview of what to expect at Good Khin Gems, LLC:
Before you visit the office:
Initial Consultation: We begin with a discussion about your jewelry, its history, known records such as previous appraisals, and the intended use of the appraisals. This helps us understand your specific needs and concerns. This can occur over the telephone before you visit the office.
When you bring your items in for appraisal:
Examination: Our expert appraisers will carefully examine your jewelry utilizing advanced gemological tools and methodologies. Inspection includes: metal testing, measurements of item and stones, counts (quantity) of the stones, identification of the stones, estimate the weight of the stones, plotting diagrams of any diamonds over 1 carat, taking documentation photos, use of a microscope and other instrumentation to get the specifics about your item. We conduct an in-depth examination of each item under specialized lighting and magnification to assess its condition, quality, determining any unique features or marks, and documenting the entire process. This is done directly in front of you so you can watch the complete procedure, if you prefer to stay along with your jewelry.
Market Research: We conduct thorough market research to determine the current value to meet with appraisal purpose based on estimating the costs, comparable sales, market trends, and other relevant factors.
Valuation Report: After the appraisal is complete, you will receive a comprehensive report detailing the value of your jewelry, along with photographs and descriptions for your records. Again, this is done while you wait.
Following your appraisal
Ongoing Support: We keep you informed about market changes and remind you when it’s time for your next appraisal. Additionally, in compliance with the Uniform Standards of Professional Appraisal Practices (USPAP), we maintain a copy of your appraisal reports and its work file for a period of 5 years, in case professional reference for litigation is needed, or if your copy of the report is lost or damaged.
Why Choose Good Khin Gems, LLC?
At Good Khin Gems, LLC, we are committed to providing top-notch appraisal services tailored to your needs. Here are some reasons to choose us:
Expertise: Our appraisers are highly trained professionals with extensive experience in the jewelry industry. We only employ GIA Graduate Gemologists (GIA, GG) and National Association of Jewelry Appraisers (NAJA) Certified Master Appraisers (CMA). We adhere strictly to Uniform Standards of Professional Appraisal Practices (USPAP) guidelines. All of our staff has been vetted through extensive background checks. We participate in frequent continuing education to stay abreast of the latest information and projections. It is our ongoing professional responsibility to stay informed about the latest trends and market fluctuations, ensuring that your appraisal reflects current conditions.
Personalized Service: We understand that every piece of jewelry tells a story. We take the time to listen to your needs and provide a personalized experience, whether it’s a single piece or an entire collection. We can provide this service at your home or office or at our main office.
Comprehensive Appraisals: Our appraisals cover not only the intrinsic value of your jewelry but also factors like design, craftsmanship, and market demand. The attention to accurate documentation and description would allow you to create a replacement for your jewelry in the event it is lost or damaged beyond repair. This thorough approach ensures that you receive a fair and accurate valuation.
Ongoing Support: We provide reminders every 1.5 years for reappraisals and are always available to discuss any changes in the market that may affect value of your jewelry. If prices are significantly volatile, we encourage you to reach out for an updated appraisal and discuss adjustments with your underwriter.
Convenient Location: Located at the heart of Nassau County in Wantagh, NY, Good Khin Gems, LLC offers a welcoming environment where you can feel comfortable discussing your jewelry appraisal needs.
Conclusion
In a world where gold prices soar and diamond values fluctuate, staying informed about your jewelry’s worth is essential. At Good Khin Gems, LLC, we are here to help you navigate these changing tides. Our expert appraisals ensure that you understand the current value of your jewelry, providing peace of mind and financial clarity.
Don’t wait for the next reminder email—contact Good Khin Gems, LLC today at 516-308-4787 to schedule your jewelry appraisal. Whether you’re looking to protect your investments, update your insurance, or simply gain insight into your collection, we are here to assist you. Your jewelry deserves to be valued accurately, and with our expertise, you can rest assured that you’re making informed decisions in an ever-changing market.
October’s Birthstones are Opal and Tourmaline
Congratulations to those of you who are born in October and get to enjoy the mysterious depths of the opal and the cool and colorful elegance of the tourmaline.
Photo Credit: https://www.gia.edu/birthstones/october-birthstones
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