WHY DO I NEED AN APPRAISAL?

1. Insurance - Provides information which will assure a replacement of equal utility, quality and value.

2. Estate - For tax liability purposes, when the fair market value of the jewelry exceeds $5,000.00.

3. Comparison - Used to verify the identity and quality claimed by a third party or to verify the value.

4. Divorce Settlement - An appraisal of property in which fairm market value is used.

5. Estimate to Replace (Hypothetical) – To determine values of items that were lost or stolen.

6. Damage - Indicates the weight loss resulting from re-cutting a damaged stone and its loss of value.

7. Collateral - Performed for a party wishing to use the jewelry or gemstones for obtaining a loan, etc.

8. Donation and Gift - for tax deduction purposes based on IRS regulations.

9. Barter - Two or more parties exchanging one commodity for another.

10. Customs - For proof that an item was not purchased in a foreign country upon return.

11. Casualty Loss – For an income tax deduction for lost and damaged items NOT covered by insurance.

12. Conservatorship – To determine the value of the estate when an individual becomes incapacitated.

13. Distribution of Property - Used with a will. Precludes heirs from squabbling over the estate.

14. Proof of Ownership - Provides positive identification when items have been recovered.

15. Investment – Provides a prospective appreciation analysis.

Any of these should be performed by a certified appraisal professional, not just a gemologist. Someone who knows federal and state laws and their requirements.

 

BEWARE OF ADS THAT CLAIM YOUR APPRAISAL WILL DOUBLE

You may have seen or heard commercials and other ads that claim that the diamond you buy from them will be appraised for at least twice the price!  Do you really believe this?  Many of these establishments base their selling philosophy on the premise that most people that buy these diamonds will not have them appraised thereafter. Some may do so only to find out to their dismay that they are not worth twice the price.  They usually will do nothing about it except never return for additional purchases..  Others—a very small percentage—will take them back, and the vendor will give them a refund if they wish.  That small percentage will have little effect on the overall scheme of misrepresentation. The purchaser may receive a value commensurate with her purchase price, but this is hardly the “twice the value” bargain price it was purported to be.  More times than not, the merchandise is also of inferior quality and misrepresented in that realm as well.

 

WILL YOUR APPRAISER SWITCH YOUR DIAMOND?


We sometimes fear having an important diamond switched by some unscrupulous jeweler.  Many times, sentiment about an engagement ring or family heirloom which can be as important as market value. Most jewelers are honest and ethical merchants.  Some may charge more money than others (sometimes a lot more!), but switching doesn’t happen very often—but it can happen.
To safeguard you from this experience, find a reputable appraiser who can give you a very definitive description of your diamonds.  This should include the shape, millimeter dimensions, carat weight, color, clarity and cutting grades.  The critical element is to have a plotted diagram—a blueprint of the diamond.  This will show the internal and external characteristics of the stone—inclusions (size, configuration and location), blemishes, damage and any peculiarities.  Having all of this will preclude anyone from possibly substituting your diamond with another.
In addition, if the diamond is ever stolen and recovered by an enforcement agency, you will be able to claim your diamond with this absolute identification; otherwise, it will be auctioned off at their next sale.  If you choose not to obtain an appraisal, at least take a close-up photo of all of your valuables.
An American Gem Society Certified Gemologist or Certified Gemologist Appraiser is prepared and capable of handling this for you.   

Click here to view a Sample Appraisal