Things You Need to Know When Getting Jewellery Valuation Done

Imagine saving money and buying a precious ornament only for it to get misplaced or stolen. Truly a heartbreak, right? To lose a piece of costly jewellery is a significant monetary loss. That is precisely why you should have jewellery insurance. A high-end jeweller or appraiser can update the value of your ornament for insurance purposes. 

Premium jewels are made of expensive metals like platinum, gold, or silver and are often studded with stones like diamonds. Gold, in particular, has been the most valued metal for many centuries. The prices of these precious metals constantly keep changing. The rates fluctuate as it depends on various factors like demand and supply, government policies, changes in dollar value, investment trend, etc. So, the value of the jewellery that you may have repurchased a year prior will not be the same today. It is necessary to get your jewel and other precious ornaments valued at the current market rate by a trusted jewellery appraiser. In the unfortunate event of losing the piece of jewellery, you can claim insurance with the valuation document, provided it is from a trusted jeweller. 

In addition, a jewellery valuation certificate can help adhere to inheritance tax obligations in case you decide to include the valued jewellery in the final will. In this article, we will share with you three key things you should be aware of while carrying out jewellery valuation. 

1. Reach out to a certified appraiser

Many inexperienced and amateur jewellery appraisers often fail to identify the actual monetary value and give either an overpriced or underpriced valuation certificate for the jewel. Both these scenarios have financial repercussions, so it is necessary to get the proper valuation. Check if the jewellery store employs appraisers who are Members or Fellows of the Institute of Registered Valuers. These qualified professionals can value the jewellery at the right price and meet the standards.

2. Know the types of jewellery valuations

When you go for jewellery valuation, you will get appraisal certification based on the design and the market rate of a specific jewel. 

There are three different types of jewellery appraisal. Namely

• Replacement value appraisal

The replacement value appraisal, also known as the retail replacement value, estimates how much it would cost to replace the lost or damaged jewel. This replacement value will always be higher than the resale value of the jewel. This is due to various factors like market fluctuation, premium insurances, and as appraisals have 10 years of validity, the cost of replacing jewellery may increase in that time.

• Fair market value appraisal

Fair market value is the actual selling price or the worth of your ornament on that particular today. Its rate depends on the quality of the ornament and how much it would fetch among potential customers. Hence, this value will be less than the replacement value appraisal.

• Liquidation appraisal

Liquidation appraisal is given to those who wish to sell the jewellery and turn it into cash quickly. It may be because you are getting a divorce or selling your properties. Liquidation appraisal is often valued lower, taking advantage of the instant need to trade.

3. Details to expect in the appraisal report

• There are certain things or necessary items that should be in the appraisal report or certificate to deem it to be legitimate.

 Client information

• Your name and other contact details should be present.

 Appraisal date

• As the market value of the jewellery keeps changing with time, the date of the appraisal is much vital to determine the value of your ornament.

Reason for appraisal

• The reason for your appraisal should be mentioned as it will determine whether you get replacement value, agreed on a rate of the ornament, or the cash value. 

Highlights of the ornament features

• The details of your ornament, namely its weight, colour, and other specific details of that jewel. 

Picture of the ornament

• It is advisable to include the picture of the jewel to refrain from any confusion when claiming insurance.

Appraiser statement

• This section will highlight the extra explantation from the appraiser on the quality and the particulars of the ornament that is also evaluated if names of other appraisers should be mentioned if more than one appraiser helped consider. 

To conclude, jewellery valuation can be overwhelming if you are not aware of the process involved. Learn about the crucial details before you go for jewellery valuation, as it is vital to get the correct value for your ornament. You can also onboard a jewellery insurance company to help you with this process. Contact us at O-Locker, the best jewellery insurance company, to help you find the best insurance policies for your jewels. You can also claim jewellery insurance online.