Engagement Ring Learning General Jewellery Learning

Are engagement ring appraisals accurate?

Are engagement ring appraisals accurate?

When it comes to the valuation of fine jewellery and engagement rings, you may have heard about receiving an appraisal. Whether for insurance purposes, resale, or simply for personal knowledge, understanding just how much your items are worth is very important. However, jewellery appraisals can sometimes be misunderstood – so let’s clear some things up.  

What is a jewellery appraisal? 

An appraisal is a professional estimate of the value of a piece of jewellery, conducted by a certified appraiser. This process involves a thorough examination of the item, and it takes into consideration factors such as the quality of gems, the material of the metal, craftsmanship, market trends, and any historical significance. The outcome is a report that states its price, should it ever need to be replaced or re sold. 

Factors affecting jewellery appraisal  

1. Qualifications of the appraiser 

Not just anyone can appraise jewellery – the skills and knowledge of the appraiser themself are very important. Certified professionals who are members of reputable appraisal organisations possess the necessary skills and adhere to strict standards are the best bet for gaining an accurate appraisal. 

2. Purpose of the appraisal 

Appraisals can vary depending on their intended use. For instance, an insurance appraisal often reflects the retail replacement cost, which might be higher than the actual resale value of the item. Understanding the purpose behind your appraisal can help manage expectations regarding the valuation. It’s important to discuss with your appraiser your reasons behind wanting to acquire one. 

3. Current market conditions 

The jewellery market is dynamic, with prices for precious metals and gemstones fluctuating due to various economic factors. An appraisal reflects the market conditions at the time of evaluation. Therefore, the accuracy can be influenced by the timing, making regular updates to appraisals important for insurance purposes. 

4. Subjectivity in assessment 

Despite the objective criteria used in appraisals, there’s an element of subjectivity, especially when evaluating the craftsmanship and historical value of a piece. Different appraisers might have slightly varying opinions on these aspects, which can sometimes influence the final valuation. 

Ensuring your appraisal is accurate 

1. Choose a reputable appraiser 

Always opt for a certified appraiser with a strong reputation in the industry. Check their credentials and affiliations with professional organisations such as the National Association of Jewellers (NAJ). 

2. Understand the type of appraisal 

Be clear about the purpose of the appraisal and discuss this with your appraiser. Whether it’s for insurance, estate planning, or sale, the intended use can affect the outcome of the valuation. 

Does The Diamond Store provide an appraisal? 

Yes – every piece of jewellery purchased from The Diamond Store comes with a free insurance valuation appraisal, complete with the retail value for replacement, should you need it in future. If you have any questions about our appraisal process, please feel free to get in touch with our team here.