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The Truth About Jewelry Appraisals

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March 7, 2015, by System Administrator

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The Value of a Diamond

The Truth About Jewelry Appraisals

How much is my diamond worth? This is a commonly asked question that GIA, EGL, or AGS etc. certificate reports do NOT include-the dollar value. This is why people often look to their jewelry appraisal for the value, however, appraisals are mostly done for insurance purposes and unfortunately, the truth is, you can NOT sell your diamond for the face value of an appraisal. This is a misconception. Here’s why..

Understanding Appraisals

In the jewelry industry, most “insurance appraisals” are given values of approximately 100% above retail value. These appraisals are inflated, and do not reflect the true value of the diamond.

You may go to a jewelry store and receive an appraisal at double the price you paid for the diamond. For example, you purchase a diamond ring for $10,000 and the appraisal says the diamond is worth $20,000. What a great deal! (so it seems)

So the question remains, if the value of the diamond was $20,000, why did they sell it to you for half the price? Who is benefiting from issuing high appraisal values?

The answer: Both the insurance company and the jewelry store.Insurance companies charge high insurance premiums on items that have a much lower replacement value, while simultaneously, the jewelry store uses these inflated insurance appraisals as a sale’s tactic-- one assumes they are getting a fantastic deal on the diamond. Additionally, most retail jewelry has a substantial mark-up as opposed to the wholesale value of the diamond.

Truth be told, an appraisal does NOT represent the actual value of your diamond. So if you are selling your diamond, you should be realistic with your expectations, as many people are shocked by how little their return on this investment is.

Our recommendation-if you are looking for a third party to value your diamond and find out its true worth, make sure to find out the resale value of the diamond, NOT the appraised value. An appraiser will then tell you what to expect to receive when you are looking to sell your piece of jewelry.

At IDoNowIDont, we offer recommendations on how to sell your diamond wisely, at the best value for you. Please email buyer@idonowidont.com and we will be happy to assist you.

 

 

3 Comments

I Do Now I Don't

Hello, I just happened to find your site today. I browsed through the auctions and especially the vintage timepiece. My question is directed towards selling a vintage pieces. Can a watch be sold "As Is" due to its antique age. These time pieces can be Swiss Made, 14k or10kRG rolled gold, a lot have 17 or 21 jewels and 95% are mechanical.
Can items such as these " sold as is"?
Thank you in advance.
LAK