Khin’s Corner -
A Jewelry Appraiser’s Blog
Welcome to “Khin’s Corner – A Jewelry Appraiser’s Blog” and thanks for taking a moment to read this month’s Blog! Here is where we delve into all things related to your precious jewelry.
This month we’re learning about Jewelry Appraisals.
There are many types of appraisals other than jewelry appraisals; such as home appraisals, or auto appraisals. Each type of appraisal differs greatly in its intent. Home appraisals are generally used to help the purchaser determine the value of the house for financing purposes like mortgages or home equity loans. Auto appraisals are typically used for determining a vehicle’s trade-in value. Jewelry appraisals, however, are typically used for placing a value on an item for purposes of insurance. While home appraisals and auto appraisals place a value on the current condition of the property, jewelry insurance appraisals are designed for purchasing or finding a like/kind/quality jewelry or creating a brand-new item that is exactly or as close as possible to the appraised jewelry, in case the original is damaged, lost or stolen.
Appraisals vs. Quotes
Jewelry appraisals are not used for the purpose of reselling a previously worn item; typically, appraisals are used for determining value for insurance, dissolution (divorce) of marriage, donations, or estate planning. Appraising a piece of jewelry is a lengthy process in which the item is carefully identified and evaluated, comparable items are researched, current market values are researched and determined, all of which occurs prior to the drafting of an extremely detailed, multi-page, written report.
To see a PDF of a sample appraisal report, CLICK HERE
On the other hand, generally, jewelry quotes are used for the purpose of selling or buying an item. Similar to an automobile, a piece of jewelry loses value as soon as you take it out of the showroom; however, due to changes in fluctuating market values of metals like gold or platinum, or prominent stones like diamonds, the value might actually increase over time. At Good Khin Gems, LLC, there is no report produced for a quote and is generally given verbally.
We offer expert appraisals and detailed consultations to provide accurate quotes. Whether it’s an appraisal or a quote, the fee associated is typically based on a “per-item” or an hourly rate.
Here are the answers to some Frequently Asked Questions:
1. How do I determine the value if I want to sell something?
If you’re planning on selling an item of jewelry on eBay or some other web-based platform, it is recommended you have such reports as: Antique Appraisal Report, Certificate of Authenticity, Diamond Grading Report, or Authentication Report. These reports are constructed by a certified master appraiser like those at Good Khin Gems, LLC.
If you’re planning to sell the item at a jewelry store, they will determine their offering price based upon their own evaluation; therefore, it is NOT recommended that you invest in getting an appraisal report prior to visiting the jeweler. If you already have a report, of course, bring it with you to the jeweler as it will save time on the evaluation process.
2. How do I know if I should get a jewelry insured?
Generally, if the value of a piece of jewelry is over one thousand dollars ($1,000), it should be insured. Smaller items or jewelry collections, less than a thousand dollars, are typically covered under your homeowners’ insurance policy. It is best to check with your insurance provider about what is specifically covered in your policy. Notify your insurance provider about specific items of concern; the insurance company might have policy “riders” that you can add to your existing policy, for a small additional fee, that might provide you sufficient coverage. Remember, however, if the value is anything over $1,000, an appraisal produced by an independent, professional appraiser is recommended.
3. How do I get my jewelry insured beyond my homeowners’ policy?
There are a number of “Jewelry Insurance Companies” such as: BriteCo, Jewelers Mutual, Gemshield, or Lavalier; to name a few. We are NOT recommending any one specific company and we DO suggest you do your homework prior to obtaining a policy. The policies, available through such companies, are generally more comprehensive than the typical homeowners’ policy. Some such policies allow for damage and repair costs in addition to replacement.
4. Do I need an appraisal prior to getting a piece of jewelry insured?
The simple answer is YES. Insurance companies need to verify the value of your jewelry item and will require an up-to-date appraisal produced by an independent, professional appraiser, like the ones produced at Good Khin Gems, LLC, before providing insurance coverage on your jewelry.
To see a PDF of a sample appraisal report, CLICK HERE
5. How often should I update my appraisal documents?
A general rule is that an appraisal should be updated every 2-3 years, or whenever there is a significant market fluctuation in the value of gold or diamonds. If you have had an appraisal through Good Khin Gems, LLC, we will email you a reminder when it’s time for you to have an updated appraisal. If you go elsewhere, it is up to you to be consistent with the updates, because if your jewelry increases in value, it might mean a higher reimbursement from your insurance company should you need to file a claim. The insurance company will only pay the amount of that last appraisal, and if prices have indeed fluctuated, the amount the insurance company pays might be less than the actual cost to replace the item which means you’ll need to make up the difference by yourself.
When you do get the updated appraisal, you will need to bring the item with you. This is to ensure that the piece has not been altered or suffered any damage since the prior appraisal report was constructed.
6. Who is the best person to hire to write an appraisal?
An appraisal is an official documentation of the value of your personal property. As with any official document, it is best to have a trained professional compose it. A graduate gemologist from GIA, an independent appraiser that has been specifically educated through an accredited appraisal organization, or ideally someone who is both, is best qualified to conduct your appraisal. At Good Khin Gems, LLC, we are GIA-Graduate Gemologists, Certified Masters Appraisers trained by the National Association of Jewelry Appraisers (NAJA) and The International School of Gemology (ISG); you can remain confident with the quality and integrity of your appraisal because of our trained professionals and our NAJA accredited gemological lab facility.
7. How long does it take to get a jewelry appraised?
A complete appraisal 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, shooting documentation photos, use of a microscope and other instrumentation to get the specifics about your item, and research on the provenance and the market value of similar items. Depending on where you go for the appraisal, this might take 2 to 3 weeks. At Good Khin Gems, LLC, we are appraisal professionals, we can typically complete your appraisal while you wait and observe the entire process, which takes 30 to 45 minutes; of course, the time may vary depending on the complexity of the item. As you leave, you take your jewelry home with you along with your completed appraisal report.
To see a PDF of a sample appraisal report, CLICK HERE
The Birthstone for July is ..... Ruby.
(Enjoy the crimson beauty of this sparkling birthstone)
Photo Courtesy of: Robert Weldon/GIA
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