Is Your Jewelry Worth As Much As You Think It Is? Your Appraisal May Not Tell You What You Need To Know
If you had your jewelry appraised before, it doesn't mean it still has that same valuation today. In addition, it's possible your previous appraisal wasn't a certified one. When you attempt to sell your jewelry, you will receive a fair price, but that price may not match your appraisal price. Here's what you need to know.
Who Did Your Appraisal?
Many different groups can perform jewelry appraisals. Because of this, you can end up with widely varying valuations. If the appraisal didn't come from a certified appraiser, then you may need a second opinion.
Why Did You Have Your Jewelry Appraised?
The reason for your appraisal can affect the valuation you receive. A valuation against a jeweler's stock will render a different valuation than one for an insurance claim. You shouldn't assume your insurance valuation is the same as the current fair market value of your jewelry.
Different Valuations for Different Reasons
There are two major types of valuations.
Insurance or replacement valuation – The insurance appraisal often renders the absolute highest value of your jewelry. It's a price point based on perfect versions of your jewelry, and the full retail value of that jewelry if purchased as if it was brand new.
Fair market or resell valuation – Fair market value is the value of your jewelry in its current condition. It's how much you can sell your jewelry for to another private party—specifically, a private party that doesn't intend to immediately resell it for a profit.
Wills, estate appraisals, auctions, and donation services use the fair market value. If you seek cash for jewelry, the offered price will be lower than the retail or replacement value of your jewelry.
Make It Known Why You Want an Appraisal
When seeking an appraisal, make sure you let the appraiser know why you want one. When finished, your appraisal report should clearly state that reason. Your report should have all the information about your jewelry, including a full description of it.
An official report can help give you a better idea of how much you can ask for your jewelry, should you try to sell it to a company like Rhonda's Jewelry. Alternatively, it can help you understand why a service offered you a specific figure for your jewelry.
Understanding a little about how appraisals work will let you know if you have a valid appraisal of your jewelry. This will keep you from experiencing surprise when a potential buyer suggests a price that's different from the value of your previous appraisal.