Why Jewelry Appraisals Should Only Be Used for Insurance
Are you thinking about selling your old diamond, gold, or silver jewelry? Perhaps you sought an appraisal in hopes of determining the value of your jewelry before you sell.
The truth? Appraisals are not meant to determine the resale value of your jewelry. In fact, the chance of you receiving the appraised value of your jewelry is slim to none at all; here’s why:
An appraisal may seem pretty cut and dry. The appraiser determines the value of the stones in a piece of jewelry, and adds it to how much the metal of the jewelry is worth to see how much the overall piece is worth, right?
Well, not exactly.
It’s nearly impossible to get an accurate appraisal of gems like diamonds when they are in their jewelry setting, particularly because it’s difficult to determine the clarity or color. So, often an appraisal might show that the diamond has more than one clarity or color grade with a range. Therefore, an appraisal is more like an inflated, educated guess on the true worth of a piece of jewelry.
An Appraisal, Retail Replacement Value, and Resale Value
You may find several values attached to a piece of jewelry. First, there’s the appraisal value; in some instances, insurance companies require the appraised value for you to be able to insure your jewelry. It may also cost you quite a bit of money to receive this estimate.
Additionally, there’s the retail replacement value. This price is the amount of money that would be needed if you wanted to purchase the same or very similar piece of jewelry at a jewelry store.
Finally, there’s the resale value. The resale price is the amount you could sell your jewelry for.
At Southwest Jewelry Buyers, we have encountered many people who assume their appraised value is the same as the resale value—but that’s, unfortunately, not the case.
Jewelry Appraisals: Not to Be Used for Jewelry Resale Value
As jewelry appraisals aren’t always spot-on accurate, you may wonder “why bother get an appraisal for my jewelry at all?” Well, for insurance.
Having your jewelry appraised is a good idea for your insurance company in case of loss through a home fire, theft or other accident. Your insurance policy will replace your jewelry based on the most recent appraisal of your jewelry. This helps protect you from loss, but the truth is, most appraisals aren’t accurate when it comes to the true value of your jewelry when buying or selling.
The Bottom Line on Jewelry Appraisals
Jewelry appraisals only offer value for insurance purposes—but please, don’t count on them when trying to determine the selling price for your jewelry.
If you’re not planning on using an appraisal for insurance purposes, it’s a good idea to skip the appraisal fees altogether. Instead, bring your jewelry in to a trusted jewelry buyer for the true resale price.
Southwest Jewelry Buyers
At Southwest Jewelry Buyers, we pride ourselves on being your trusted jewelry buyer in Scottsdale, Arizona. Just schedule a confidential appointment and come in to have your jewelry appraised for the honest resale value. We buy diamonds, gold, silver, platinum, watches, coins, and fine jewelry at a fair price. We are in business to help you get the best profit possible, and look to create lifelong relationships with our clients for their resale needs.
We have an A+ rating with the Better Business Bureau, and perhaps our proudest accomplishment is that we’ve received the U.S. Commerce Association’s Best of Scottsdale Award in the Jewelry Buyer’s Category—five times over.
Contact us today about any questions you have about our company or to learn about selling your jewelry today.