Most people would like to know the worth of their diamond but a diamond certificate such as GIA does not indicate any dollar value in its certificate. So let us see why, how and where we can we acquire an Appraisal.
WHAT ARE THE THREE MAJOR REASONS WHY AN APPRAISAL IS NECESSARY:
1) To make sure that a seller of a used diamond ring or diamond jewelry is getting a good deal.
The most common mistake of most sellers is that they think that they should get the same price of their used diamond ring or diamond jewelry as the appraised value. Note that an appraisal is an estimated value used for a specific purpose like for insurance. Whereas the selling price of a used diamond jewelry is the secondary market value that varies depending on the condition of the piece; who you are selling it to; and the current market value of the diamond. Are you selling it as a diamond jewelry or just a scrap gold value? Are you dealing with a private buyer or a diamond dealer? Is the current market value for diamond and gold showing high or low? These factors are needed to be considered in selling a diamond ring or diamond jewelry.
You definitely want to dispose your valuable asset with a good return of investment, thus, knowing the difference between the Appraised Value and the Selling Price leads to a favorable deal. Appraisal whether free or not is available from most diamond dealers.
2) To make sure that a buyer for an unused diamond ring or diamond jewelry is purchasing a good deal.
In buying an unused diamond either loose or set in a ring, one must be aware of the difference between Appraisal Value versus Selling Price offered by a seller. A seller tends to offer a $30,000 worth of diamond ring for a $5,000 value only. This may look like a very tempting deal to a buyer especially when his or her knowledge about diamond pricing is limited. A buyer should take some precautions in such type of deal. He or she should know that a "Certified Appraisal" is totally different from a Diamond Certificate such as the one provided by GIA Laboratory where the grading of the diamond itself is exclusively shown in its certificate. Having an awareness of at least basic characteristics of a diamond such as carat size, cut, color and clarity is a big plus if you are buying for a good quality diamond that is priced fairly.
3) To obtain an insurance for a diamond engagement ring.
It is recommended to insure one's diamond (loose or set in ring or jewelry) through homeowner's insurance especially for a large size
or good quality diamond. An insurance policy can cover up to $1000 and more. Diamond rings or diamond jewelries at bigger value will need a rider. Getting your diamond or diamond jewelry insured, an insurance company requires an appraisal. Be noted that the higher the appraisal value indicated in the appraisal the higher the premium of the insurance. In case of loss or damage of an insured diamond ring, most of these insurance companies cover and replace the item. If you lose a diamond worth $30,000 market value with $60,000 appraisal value, the insurance company can make a good deal but you will have to share the burden of paying almost double of your insurance premium.
WHAT IS APPRAISAL VALUE?
WHAT IS APPRAISAL VALUE?
Appraisal Value, also known as
Retail Replacement Value
Insurance Replacement Value
, is the
of the lost
item which will be the basis of the insurer in replacing the lost piece with another one of almost the same value. Thus, an appraisal has a specific purpose and intended use. It reflects a value that is usually higher than the actual purchase price of the piece which will eventually serve as reference for bargaining for replacement item of the insurer.