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I have an issue in that my mother's solitaire engagement ring was stolen.   I need to find out what a current value would be on the ring.  The last appraisal was done in 1987; it was valued at $7273.  the appraisal reads:

 

Lady's 14k yellow gold 6mm flat polished wedding band set with (1) @2.0 ct brilliant cut round diamond in a 6 prong white gold head. Clarity I/1, Color H-I, Mounting wt 4.4 dwt

 

How would I go about getting a current fair market value?

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Unfortunately, it's not something that is easy to (or perhaps even possible) to do without the ring. The 1987 value is not very relevant, but the description is inadequate to do anything more than provide a very broad range of say $7500 to $13000 (or more) depending on the precise characteristics of the stone, the setting and the marketplace where you are looking to replace the item (an anonymous internet dealer is going to be much cheaper than Cartier on 5th Avenue in Manhattan; the latter would probably charge you more than $30,000, but would not sell you an I-1 stone).

More importantly, if the purpose is that of making an insurance claim, the policy has probably been bound on the basis of the appraisal... which means the insurer will only accept liability up to the declared/insured value ($7300?) - which may or may not be enough to replace the item like for like. You can just about find 2 carat H-I/I1 stones for around $7,000, but they are generally not very well cut, and the inclusions may be quite prominent - we know nothing about either factor in the stolen item.

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Is this an insurance question?  Tax?  Shopping?  Something else?  Yes, it matters. Davide has given a good summary of the issues, and I’m not going to begin to try and appraise a ring in such circumstances.  How to proceed depends on what you’re doing here.  If it’s an insurance claim, for example, the onus of this is on the insurer, not you.  They will make you an offer and, again as mentioned above, it’s likely to be the limit of the policy. 

If, on the other hand, you’re looking to replace it yourself, there are several topics to consider.  Cutting has become big since 1987.  Another is that approximately 2.0cts and 2.00 are very different.  I think the range of possibilities is even bigger than what he outlined.

 By the way, 'fair market value' is a tax term.  It doesn't mean what you think it does and, in particular, it doesn't mean fair in any normal sense of the word.  We're talking about the IRS here. If this is a tax question it may indeed apply, but that's probably not really what you want. 

 

Edited by denverappraiser

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