Jewelry can be expensive, so shouldn't you protect your investment with an appraisal? There are many types of appraisals, but the most common reason to get an appraisal is for insurance purposes. If you have jewelry that needs appraising, check out these four myths you should know about appraisals.
Myth #1: The Higher the Appraisal, the Better
This myth can be true, but only if the high appraisal is accurate. No matter what, you always want your item appraised for the appropriate amount and nothing more or else you're only cheating yourself. The incorrect theory behind inflated appraisals is that you get more money. You buy a piece of jewelry for $500, but it somehow gets appraised for $1,000. Wow, you must have got a real bargain. Now, if the item gets stolen, you'll get twice what you paid for it. Unfortunately, that's not likely. Most likely, you'll just be paying a higher premium for nothing.
If you have standard jewelry insurance, you should get reimbursed if the item is stolen whether it's inside or outside your home, but that doesn't mean you'll get that $1,000. Check your policy because it may only cover replacement not reimbursement. If you don't want jewelry insurance and you own your home, you can add a rider to your homeowner's insurance, but it will only cover the item if it is stolen or lost while in your home.
Myth #2: All Appraisals Are the Same
There are different types of appraisals, and they are used for different purposes. An insurance appraisal is the one you'd need to protect your item if it is lost or stolen. This type of appraisal is needed before you can insure the item. Insurance appraisals are usually higher than other types of appraisals because they tell you how much money you'd need for a new, similar item.
Another common type of appraisal is a fair market appraisal. This one is necessary if you want to sell the item and get a fair price. This appraisal tells you the price based on the current used condition of the item, which is why it is generally lower than an insurance appraisal. Remember, you can't use an insurance appraisal to judge the fair market price, and you don't want to use the fair market price appraisal for insurance needs.
Myth #3: You Just Need One Appraisal
Most goods steadily increase in price as the years go by, but precious metals and stones are a little more volatile. They may drastically increase in price one year and then drastically drop the next, which is why it's important to have your jewelry appraised about once a year.
If you fail to have you jewelry appraised, you may be paying higher premiums than necessary if the item's value decreases. On the other hand, if the item's value significantly increases, your coverage won't be enough to get an adequate replacement if it is lost or stolen. Many insurance providers may require you to have routine appraisals, and if you don't, you may not get any money if your item is lost.
Myth #4: Any Appraiser Is Fine
It may seem obvious that anyone working at a jewelry shop can appraise your jewelry for you, but that isn't true. Many people have certificates saying they can appraise jewelry, but that doesn't mean they are actually qualified to do so.
Like any skill, leaning how to properly appraise an item takes time and education, so before you pay for an appraisal, ask about their experience. If they mention things like gemological and appraisal training, you're probably good to go. When it doubt, find someone who is part of an appraisal association, which require strict standards.
Don't neglect your jewelry. Make sure you get routine jewelry appraisals by professional, skilled appraisers, so you can be covered if your jewelry is stolen or if you need to sell it. For more information, contact an appraiser, like those at The Gold Miner, in your area today.
Share11 December 2015
After my wife inherited a bunch of high-end jewelry from her mother, she started wearing it daily to work and special events. Unfortunately, after only a few uses we realized that she didn't know that much about caring for jewelry, and some of the pieces started to tarnish. She worked hard to learn what types of care each piece needed, and things started to improve. My website is made for people who might be new to caring for high-end jewelry. Check out these pages to learn how to keep your silver, gold, and precious gems gleaming for years and years.
