WHY DO I NEED MY JEWELRY APPRAISED?

There are  three very important reasons for having your jewels appraised.

1. The appraiser is an ‘identifier’. Your jewelry must be identified as to its materials (stones & metals), workmanship (hand-made or mass-produced), condition (like new or very worn),modern or period (antique or contempary) and other elements affecting its value, for example, measuring beauty and rarity and then evaluated-ranked in quality in relation to all other similar property.

Having an accurately detailed description of the jewels, including photographs, will help ensure, in the event of a loss, of being made whole by your insurance carrier.

Gemological Insurance Appraisers uses state of the art micro photography as well as state of the art digital photography.

2. The appraiser is a ‘valuer’.  A value must be assigned to the jewelry that is appropriate to the purpose of the appraisal.

3. The appraiser is a ‘witness’ to the property. The appraiser can attest in a court of law that the jewelry existed at a certain point in time, and that it was in a certain condition. (That is why it is necessary for your appraiser to examine your jewelry when you have an appraisal update.)

Unlike real estate, that stays in one place and is sold in one market with public recordings of sales, personal property such as jewelry moves from one location (market) to another. It is subject to a layered market including retail of several levels, wholesale of varying levels, and markets for sale of used (pre-owned, antique or period) as well as new items. In addition, most of these transactions are by “private treaty”, and thus are not subject to public record.

In addition, the value of jewelry is related to circumstances surrounding the sale. The value must relate to the most common market for the item of jewelry, considering its condition and all other value factors. Value is always specific to a certain date and a stated purpose and will vary according to the situation.

Just as in valuing real estate, valuation of jewelry is largely a matter of research. It is important to preserve any past documentation of your jewelry-sales receipts, certificates from a gem laboratory,  previous appraisals, guarantees or warranties, etc. These record the history of your jewelry, will aid your appraiser in assessing its current value. They could also be important at some future date in proving your personal history of ownership.

At Gemological Insurance Appraisers, we keep copies of your documentation for five years, just in case your records should be destroyed along with your jewelry.

The professional jewelry appraiser utilizes three traditional approaches to value market research of sales of comparable jewelry, the cost of making a reproduction or a replica of the jewelry, in  rare cases, an estimate of the income producing potential of jewelry.

On April 25, 1996 Jackie Onassis triple strand faux pearls went on sale, lot 461, with a pre sale estimate of $400 to 500., they sold for an amazing $211,500.

Normally, a second-hand three strand faux pearl necklace will be sold only in a thrift store for a few dollars.

Franklin Mint paid $211,500.00 for a three strand faux pearl necklace because they made copies and sold them.

Franklin Mint has the original Jackie Onassis faux pearl necklace on display at their corporate office.

If one were to appraise Jackie Onassis triple stand faux pearl necklace, one would have to add the price it sold for $211,500.

That the necklace was sold for $211,500. is a now a fact, together with the revenue stream it has created. The three stand faux pearl necklace would appraise for a very high figure.