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How Is Jewelry Appraised?

Jewelry can be appraised for several reasons. If jewelry is being sold, it will need to be appraised so the buyer knows what they are getting. Appraising jewelry may also determine its value in case of an insurance claim or loss. Many people also seek an appraisal when they inherit jewelry because the original owner and family may wish to determine something about their heritage with the jewelry. Anyone who needs jewelry appraised should take jewelry to a jewelry expert if selling jewelry or trying to establish ownership or any other significant factor with jewelry.

The following details outline different ways that jewelry is appraised:

Market Value

Market value involves determining what someone would pay for a piece of jewelry at a particular time and place. This information is usually used to help determine insurance value. Market value may not always be the same as jewelry replacement value, which is the cost of replacing jewelry with jewelry that is in current style and condition at a given time.

Replacement Value

Rather than assessing market price, jewelry replacement costs are determined by calculating what it would take to buy jewelry similar in design or craftsmanship to an existing piece of jewelry today. The difference between market price and replacement cost helps assess the overall loss in case of theft or accident.

Insurance Value

Insurance companies base their appraisals based on market value but adjust for depreciation based on age and general wear-and-tear over time, meaning that jewelry costing $,000 when new might only be worth $,000 today after years of wear and tear. The jewelry market is constantly shifting but many jewelry appraisers use jewelry with a history or pedigree to help establish its value. This type of jewelry is called “estate jewelry.” A special category of these pieces are jewelry known as “antique jewelry” which refer to jewelry dating back at least 100 years.

Historic Value

Sometimes the historic significance of an item can be just as important as its monetary value, or even more so. Historic value may not apply to most people’s daily lives but it can be significant with some kinds of jewelry such as certain kinds of antique jewelry.

Sentimental Value

One reason most people own jewelry is because they have strong sentimental connections to it. Wedding rings are a perfect example of jewelry with sentimental value. Jewelry appraisers will often take into account sentimental value when appraising jewelry. jewelry owners may want to include a letter with their jewelry explaining the emotional connections they have to it in case it is ever lost or damaged. This can help an insurance company understand the full value of a piece of jewelry.

In conclusion, there are several ways to appraise jewelry. The most important thing when selling jewelry or trying to establish its value is to take it to a qualified jewelry appraiser. By understanding how jewelry is appraised, people can make better decisions about what type of jewelry they own and insure it for the best possible protection.