What to know about jewelry appraisals.

WHAT IS AN APPRAISAL?
An appraisal is a document that describes an item, assesses its relative quality and assigns a value to it. Descriptions usually cover weight, materials and markings. Most appraisals also describe subjective features such as gemstone quality, relative rarity and overall quality of manufacture.

INSURANCE APPRAISALS
The majority of appraisals are for insurance replacement purposes. The point of insurance is to return the value of the item to the customer. Therefore, insurance appraisals should reflect the realistic cost of replacing an item in a retail jewelry store that regularly sells the type of item being appraised.

FTC GUIDELINES FOR JEWELRY APPRAISALS
Intentionally over-valuing items on appraisals is considered illegal under Federal Trade Commission (FTC) guidelines and unethical by all nationally recognized appraisal organizations. The value assigned to the piece of jewelry should not be inflated beyond what is considered a fair retail selling price.
Customers’ appraisals should be updated periodically to make sure they have adequate insurance coverage. Appraisals should be updated every three years, but having your yearly upgrades increases your chance of recovery by 50%.
Unusual circumstances, such as sharp increases in availability and price for certain jewelry components, should also be taken into account when appraising an item. In addition to the cost to replace or repair an item, the value stated in an insurance appraisal should include enough to pay the appraiser for their services. The appraiser must also remember to add taxes, which can either be listed separately from, or included in, the value on the appraisal.

Here are six things that should be included in your jewelry appraisal:
1. Name of Client and intended use
2. Description – This may seem obvious, but the description should be more than just a rudimentary explanation. Included in the description should be any distinguishing characteristics, weights, grades, measurements, etc. Also this may include the type of ‘cut’ of the gem (e.g. princess, round, etc.)
3. Manufacturing information – Who put together the piece, how the workmanship rates, what amount of karats are involved, what type of metal, etc.
4. Photograph – Often a photograph should be included to verify that the appraisal document corresponds to the piece.
5. Estimated Value – There should be an estimated value of the piece based on the market place.
6. Signature and embossing seal

For any questions, stop in and talk to Chris Biele at Atlantic City Jewelry. Ask about our Jewelry Appraisal Service! We have two conveniently located stores in Bayville and Tuckerton! Let us appraise your jewelry and give you the peace of mind you are looking for!