Jump to content

Valuation Question


Gayedeb
 Share

Recommended Posts

Recently had solitaire ring valued for insurance. Valuation completed by same person and firm as 4 years ago. Ring was cleaned,claws repaired and white gold band replated prior to valuation. This time it has gone from 9 ct to 18ct, is listed as 'coated'(thats never been mentioned before) , minor changes to clarity (11 to 12) and weight (0.43 to 0.45) and is valued at $35 LESS than 4 years ago. Does that seem odd? I am going to question all of the above but wanted to get an expert opinion.

Link to comment
Share on other sites

The only piece of that that's outside of the normal margin of error is the karatage.  Obviously at least one is in error.  I can't venture to guess which but I would start by discussing it with the appraiser and showing him/her both reports.  If you've already done that, what did they say?

 

The usual valuation procedure is to decide what all the various materials are, add the labor costs to build the piece, and then apply a markup to what a retail store would be expected to charge to custom make a replacement.  A drop from I1 to I2 is significant but a bigger piece may have to do with the labor charge and the included markup.  Again, ask them.  They should be prepared to explain how they got to their value conclusion.

Link to comment
Share on other sites

Sorry if I am hijacking this thread, but I have a related question.  I have yet to insure the ring I bought in November.  I got an appraisal with the purchase of the ring and also had an independent appraisal from a local gemologist.  Should I take the higher one to the insurance company?  Would slightly higher premiums (there is about a $1500 difference if I recall correctly) be worth the peace of mind of higher coverage?  Is that enough info?

Link to comment
Share on other sites

There's also "self-insurance", or going naked ... decide what your pain threshhold is.

 

For one or two pieces, it's probably a good idea.  Once there's an accumulation of various pieces built up over the years, you have to start picking and choosing, or else provide a running inventory for insurance purposes.  But the bulk of your jewelry might be usually kept in a secure location (i.e. safe deposit box), and the rest in a home safe, so the insurance risk is far less on those items.  And if you've ever had reason to collect on standard insurance, your premiums may go up afterwards, further changing the decision to carry (or not).

 

The independent appraisal is hopefully going to be the more accurate one, and the one that came with the ring is intended to make you feel good about your purchase, but makes an attractive lining for your bird cage otherwise.

 

There are insurers recommended by jewelers (who don't get a kickback); these might have the most reasonable pricing.

Link to comment
Share on other sites

Sorry if I am hijacking this thread, but I have a related question.  I have yet to insure the ring I bought in November.  I got an appraisal with the purchase of the ring and also had an independent appraisal from a local gemologist.  Should I take the higher one to the insurance company?  Would slightly higher premiums (there is about a $1500 difference if I recall correctly) be worth the peace of mind of higher coverage?  Is that enough info?

Use the document which best describes what you want to insure: the one with the most details, photos, reports and whatever else attached to it.

 

It's in your interest to be precise about what the insurance company is covering - you don't want to end up with a 2.95 F/VS1 VG EGL as a replacement for a 3.06 D/VVS1 XXX GIA (both could be described as "colourless, high clarity, about 3 carats round diamond"). If neither document seems precise enough, return to the independent appraiser and ask him/her to specify more details!

 

Assuming the level of detail is the same in both documents, if the higher appraisal value comes from the vendor (and it's higher than the price you paid), I'd happily discard it. It's a "make you feel good" piece of paper, and be assured that the insurance company will be able to get a replacement for at most what you paid, if not significantly less.

 

If the highest value comes from the independent appraiser, use that one - you may have got yourself a relative bargain, and may be ill served by saving ~$15/year.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

×
  • Create New...