Everyone loves to wear gold and diamond jewelry as aesthetic accessories. Fine jewelry pieces are not mere accessories, they are investments. If you have a collection of beautiful jewelry or an heirloom watch passed down to you, then you must secure your valuables. For this, you need to get a jewelry appraisal for insurance. 

If you want to sell your coveted items, then also it is recommended to get a jewelry or watch appraisal. This way, you can know the accurate value of your items and effortlessly sell them at a profit.

Jewelry valuation is a professional assessment of your intricate pieces by a certified appraiser. The appraiser will provide you with a document with the estimated value of your piece along with details related to it. 

Prestige Valuations is a trustworthy appraisal company providing various services such as luxury handbag, jewelry and watch appraisal. They have expertise in all types of appraisals, whether it’s for selling, estate management or insurance purposes.  

Type Of Jewelry Appraisals

There are a few popular types of jewelry appraisals that you can opt for depending on your requirements. 

1. Jewelry Appraisal For Insurance 

Jewelry appraisal for insurance is also known as the retail replacement value appraisal. A professional appraiser will assess your pieces to determine their true worth if bought new from the market. This value will be used by the insurance company to estimate the fair replacement value in case your jewelry gets stolen, damaged or lost.

When you also have antique jewelry pieces in your collection, the retail replacement value is only used as a reference. Antique pieces can’t be replaced with any new items. 

Let’s understand, how your policy can cover your jewelry:

• Agreed Value Policy: This type of policy offers you the complete amount of retail replacement value. This is mostly expensive but it is quite transparent as you are paid the total amount in case of an untoward incident, be it burglary or loss. You must get a re-appraisal every two to three years to adjust the policy as per the current market worth.
• Actual Cash Value: This amount can be calculated by decreasing depreciation (with time, pieces show wear and tear signs) and obsolescence (currently not in trend or outdated). Actual cash value policies are cheaper than Agreed Value policies. But you must note that the premium is calculated as per the risk involved.         

2. Fair Market Value Appraisal 

This type of jewelry valuation is required when you are planning to sell your pieces. Fair market value appraisal is an appraiser’s assessment of your precious pieces to determine an estimated price at which they can be sold in the second hand market. 

An appraiser decides this value by researching the current market and jewelry trends. Market demand for a particular type of jewelry will have a higher value. The fair market value is also useful for estate management or tax planning.

3. Estate Appraisal

When you have antique jewelry or vintage pieces, this type of appraisal will be useful. This jewelry appraisal is estimated on various factors like history related to the pieces, their age and rarity. The appraiser will give you a price range which can be utilised for different purposes.

4. Charitable Donation Appraisal

You can get a tax break if you donate a jewelry item to charity. The tax deduction will depend on the value of the donation. For a charitable donation over $5,000, an appraisal certificate will be required if you want to use it as a tax document.

5. Intrinsic Value Appraisal 

Intrinsic value appraisal provides a base for different valuations. The value of a piece can’t be less than this amount. It is the value of the precious metal or stones that the jewelry item is manufactured of. For example, if a gold pendant weighs 20 grams, then its value as per the current market rates is the intrinsic value. You can understand it this way you get your gold pendent melted to sell it as a bullion.

When you own a luxury watch or fine jewelry, it becomes important to get a watch or jewelry appraisal for insurance respectively. A valuation by an expert appraiser can give you peace of mind. You will come to know the actual worth of your pieces in the market. 

Hope after reading the article, you are aware of the importance of appraisals.