When you buy expensive jewelry and diamonds you are making a major investment. Naturally, you want to do as much as you can to protect such a significant investment. In order to insure your possessions, you must know their true value and there are other reasons to seek out a professional appraisal. Here are some good things to know about appraisals to help you understand their importance.
What is an Appraisal?
To appraise means to assess value for something. For example, is your ring worth five thousand, ten thousand dollars or more? Just because you paid ten thousand a few years ago, does not mean it is still worth the price. You need to take jewelry to a professional appraiser.
When you take your jewelry and precious stones in for appraisal you should choose someone with the right qualifications. For example:
- Certified gemologist
- GIA graduate
- Well recognized organizations like the ADL or AGS
What is a Gemologist?
Gemologists go to school to understand how to grade and identify diamonds and precious stones. However, this does not automatically make someone a good appraiser. Yet, it does help if they receive their diplomas from a trusted source like the GIA (Gemological Institute of America).
It is important to choose an appraiser who keeps up with all the changes in the industry. Look for gemologists with additional GIA training and associations like the International School of Gemology, American Gem Society or the American Diamond Laboratory.
Why Get an Appraisal?
Why is it so important to appraise diamonds? Because you need to know their current value in case they are lost or stolen. Your insurance company is interested in how much it will cost to replace your valuables. Perhaps you believe your jewelry is worth fifteen thousand dollars. This means very little to the insurance company. They want to know its value (assessed by a professional). The only way you can do this is to pay for an appraisal.
Won’t Your Sales Receipt Serve as an Appraisal?
Many people often make the mistake of thinking a sales receipt denotes value. In reality, it only states how much you paid and if you overpaid, then your purchase may not be as valuable as you think. This is why a sales receipt may mean very little to your insurer.
The Importance of Appraisal Updates
You should have your diamonds appraised every other year. This way you know you are insuring them for the proper value. Diamond prices can change from year to year, so frequent appraisals help you know your true net worth at any given time.