How To Value Jewellery That You Have Inherited

Things to Consider When Selling

When someone passes away, they may have left behind a vast collection of jewellery in their estate. How do you go about assessing and placing a value on this piece of jewellery? What aspects contribute to its overall value, and what are those aspects?

In addition to all the other problems and difficulties, there is the necessity of dividing the inheritance portion of jewellery. This article will assist you through some of the challenges you may face as you attempt to arrive at a fair and equitable distribution of the property.

Inherited jewellery


There are three main reasons why we might be interested in finding out how much this jewellery is worth:

  • First, if we divide the jewellery among other relatives equally, we need to know the value of each item of jewellery.
  • Secondly, if we want to sell any of it in the future, we need to take precautions against individuals who would try to drive down its price so that they can subsequently make a profit by selling it at a much higher price.
  • Lastly, if we plan to keep the jewellery for ourselves, we should probably learn what we inherited and how to care for it properly. It is especially important if the jewellery has sentimental value.

Therefore, we must separate the pieces considered costume jewellery from the gems of high worth.

This article will present a beginner's approach to valuing jewellery that has been passed down from generation to generation. If you follow these guidelines, you should receive a pretty accurate estimate of your jewellery's worth.

What Variables Contribute to the Overall Price of Inherited Jewellery?

An unexpected Inherited Jewellery collection can be pretty thrilling, but it can also be very overwhelming if you don't know where to start sorting it all. So how exactly do you calculate the worth of these different pieces? And which aspects of those characteristics will have an impact on that value?

The following are some things that should be kept in mind:

Inherited jewellery


Retail Market Value

You are familiar with or have seen price tags that indicate "RRP" followed by the item's price, which may be found on anything from apparel to automobiles. "Recommended Retail Price" is what this term refers to.

One of how we can gain a sense of the competitive value of things that will be offered on the market at retail is by using this method.

Appraised Value

To purchase insurance on the items, it is the price that a professional Certified Appraiser will determine the items to be worth. This value is inflated because it considers the potential growth in the price of precious metals and gemstones in the future and the possible cost to replace them at that time.

Many of the pieces of Inherited Jewellery are antiques. As antiques are challenging to replicate, these pieces have an additional intrinsic worth significantly higher than their retail value. Therefore, it will be taken into consideration in the evaluated value.

Fair Market Value

The difference between the retail and fair market value is the amount of money you could get if you sold the item "as is" without making any repairs. The retail market value is the price under perfect circumstances.

It is the amount you can anticipate receiving if you locate a buyer for the item rather than having it sold as new in a jewellery store, and it is the amount you can expect to receive.

You still need to be familiar with the market for products regarded as "worn." Nevertheless, the value that is considered to be fair in the market will be based on the knowledge of what is the least amount of money compared to the most amount of money that can be expected to get from private sales, and then striking a balance between the two amounts of money that can be expected.

If you know that the diamond ring your mother wore once cost $5,000, then it is reasonable to assume that you should be able to sell it privately for an amount that is one-half of the original price. It is the value that the open market would determine.

The law requires the formula for determining the worth of objects owned by a deceased person to calculate taxes and distribute their assets by the item's fair market value.

Therefore, even though there may be documented appraisals or receipts for Inherited Jewellery, the Fair Market Value will be used to determine how Inherited Jewellery should be distributed among heirs and to calculate capital gains tax.

Metal Content

The kind of metal your Inherited Jewellery is crafted from is another factor that will establish its value. Is it solid gold, or does it just have a gold plating? Is it sterling silver? All of these are essential considerations, so keep them in mind.

There will also be consideration given to the carat weight. For example, 24-carat gold is entirely pure, whereas 14-carat gold contains just 58.5% gold, and the remaining proportion is made up of other metals such as silver, copper, and zinc.

It is also vital to consider the weight of the metal. The value of heavier pieces will be greater than that of lighter parts because there is just more metal to work with in heavier pieces.


Finally, the kind of gemstones that were utilised, as well as their quality, will have an impact on the price that people are willing to pay for your inherited Jewellery as well as diamonds that are evaluated using a system known as the "Four C's," which takes into account the stone's carat weight, clarity, colour, and cut.

The quality of these four characteristics determines the overall value of the diamond. Therefore, the better the quality, the more precious the diamond will be.

Gem stone Inherited jewellery


In addition to diamonds, the value of other precious stones, such as rubies, emeralds, and sapphires, cannot be understated. However, the quantity of the gemstone utilised is just as significant as the type employed.

Therefore, an inherited jewellery piece with numerous large gems will likely have a higher value than an identical piece containing only a little stone. In addition, certain pieces of Inherited Jewellery have a worth that extends beyond their monetary cost since they are considered to be birth rights.

Additionally, the fact that a loved one adored an inherited jewellery piece gives it an emotional value that cannot be measured in monetary terms. A professional jewellery assessor does not have any means of determining or quantifying its value, even though all of these and other factors contribute to the item's great value.

When all is said is done, it is up to the family to figure out a fair solution.

How to Determine the Value of Jewellery that you have Inherited

It can be stressful for a Trustee to evaluate the worth of inherited objects, mainly, because the Trustee may have to split the property among multiple recipients.

Value of Inherited jewellery


If the Appraised Worth and Retail Value cannot be utilised to determine value, then the only option is to use the Fair Market Value.

Alternate or Secondary Markets

It necessitates the presence of an individual familiar with the secondary market for each jewellery item. For example, the secondary markets for diamonds and other valuable gemstones are not the same as those for gold and platinum.

A few things are required of the one who is given responsibility for this task

  • Take the pieces with you to several jewellery stores and ask for an appraisal and a receipt if they are available. Inform the jewellery store that you are considering purchasing insurance for each item but would like to determine what you own before doing so. The jewellery store will be more than delighted to assist you in determining what is valuable and what is not among the items you have brought in. So please put what you need to remember into writing so you won't forget it. Remember that the Appraised Value is more significant than the retail or the Fair Market value, but you will want all three values in the end.
  • When you are in the jewellery stores, search through their display cases for items comparable to the ones you inherited. To understand what the article is worth in the retail market, you must find out how much they are asking for it. For example, it is safe to assume that your one-carat diamond ring will sell for close to the same amount as the store's decent-quality one-carat diamond ring if you put it up for sale at retail value. It is because both rings have one carat of diamonds and are of decent quality. Please put what you need to remember into writing so you won't forget it.
  • Navigate to a few essential web retailers. For instance, if you own a diamond bracelet made of¬†an 8-carat diamond, you can find other similar items there that are also for sale. Determine the average price of things that are being advertised that are comparable to yours by looking at the weight of the items and possibly also checking to see if any name brands command a higher price.

It will give you an estimate of the products' value in today's market. Please put what you need to remember into writing so you won't forget it.

Now that you have an idea take a look at the three possible pricing structures discussed earlier, use this information to figure out the median price for the items in your inventory.

Again, taking your time and carefully completing this task will prevent you from falling prey to con artists because it will demand some investigation on your part.

How to Value Jewellery you have Received as an Heirloom

It is not surprising that many people are interested in Jewellery appraisals today; the rationale behind this trend may be easily understood. You may want to insure the items, or maybe you're just interested in how much they could be worth. Both of these are good reasons to get an appraisal.


Heirloom Inherited jewellery


There is one thing that you really must bear in mind:

You cannot provide an official, written Jewellery appraisal of your jewellery that is meaningful in any way. It would be the equivalent of someone handing you a blank check, and it won't fly with anyone.

If you were to write down a description of the object and give it a value, an insurance company would not use that information to sell you coverage and would require that you first get a professional appraisal done on the item.

Furthermore, attorneys will not accept your word for it if you are going through a divorce or structuring your estate, and they will do their best to make your life as difficult as possible by requiring proof of every allegation you make.

You are required to have a written Jewellery appraisal by a third party regardless of whether the jewellery was purchased or inherited by you.

Therefore, even if you have receipts for the jewellery, you still need to have an appraisal. However, if you have followed the instructions in the previous section, you will have a good notion of the value of your belongings depending on what you want to do with them.

However, to provide additional information and assist you in making a decision, we have created a brief article about Jewellery appraisals.

Advice on How to Make the Most of your Jewellery Heirlooms

You've done all the legwork, had an appraisal, and now you have a solid idea of what your Inherited Jewellery is worth. You've decided that you want to sell it, but you're not sure how much it's worth. To help you make the most of your sale, here are some helpful hints:

Consign your Inherited Jewellery with a Trustworthy Jeweler

Be aware that if you want to sell your products at a local jewellery store, it could take a year or longer unless the items are in high demand or are a famous name brand or Designer name. If you still want to sell your items, you should keep this in mind.

Because so many of them will tell you that the value will be much lower because it is "used," we do hope that you have a jewellery store that has a high level of integrity. If not, we do hope that you have access to one that does.

Trust worthy Inherited jewellery


If they have cleaned and polished the items for you, they will appear as good as new and should be able to compete with their new products just as effectively as if there had been no wear and tear.

They will likely convince you to consign your items to them for a lower "used jewellery" price, tell you that they will collect 40% of the sales price, and then inflate the price once they have it in their possession. It can be very easy for them to make money off you.

If you agree to sell your item for $600 less than the market value of $1,000, you will receive $600 after it has been sold. As you acknowledged in writing that this was all you would accept, they are required to give you nothing more than that.

After you have left the item there to be sold, however, they will mark it up and double the selling price to a total of $2,000 to take advantage of the situation. On the other hand, you will only walk away with $600, while the business will take home $1,400.

Make sure that this is not occurring to you! How will you know? Send in a friend a week later to try on numerous goods and the one you have there, and ask the store for the pricing.

Selling via Online Auctions

If you prefer to bypass the jewellery store and go straight to internet stores, this will get you the same as you would get from the jewellery store. The reason for this is that online retailers charge some percentage.

While this seems sensible, keep in mind that the competition is so tremendously among internet retailers for jewellery that people are compelled, by necessity, to sell significantly below retail and even below market value.

At least at a jewellery store, you will not have that rivalry and will get closer to retail value for your items if the store is honest. One of the reasons you will not get a fair price on internet marketplaces is that there is a tonne of stolen products advertised, and the crooks are willing to take significantly less for items they did not pay for in the first place.

Know the History of your Inherited Jewellery

If you decide to sell, be sure you know approximately when the things were manufactured. Inherited antique Jewellery has a significantly higher worth than modern jewellery, gramme for gramme.

Therefore, this value must be considered more significant than most jewellery and should be sold in terms of pricing structure. If you have an item from the Art Deco period, manufactured in the early 1920s, those are highly sought after, as are diamonds and gemstones from that Era.

Diamond cuts and shapes from early times, such as Old European or Old Miners cut diamonds, are two of the most beautiful and precious Cuts because they reflect light and brilliance.

Know What You Have!

Gemstones such as emeralds, rubies and sapphires that were mined and cut during that Era and up to the 1950s are usually not heat-treated or fractured-filled to enhance appearance.

These untreated stones command 10X's the number of their counterparts that have been messed with. You may have to get those pieces evaluated, or at least looked at, by an Independent Certified Gemmologist to determine this.

Final Thoughts

Just because you did not have to acquire Inherited Jewellery does not mean that it should be regarded with less worth than if you did. Most importantly, the person who left their Inherited Jewellery with you will want you to have the maximum pleasure or sale value. It is a gift. Utilize it wisely!

For example, some people place a high value on heirloom jewellery, while others see it simply as an old piece. The process of determining the worth of an heirloom is highly personal.

To the appropriate buyer, an item like this can be worth one hundred times more than its current market price. Luxury Brand Jewellery wish you the best with all of the emotions and concerns that surround inheritance.

Moreover, Luxury Brand Jewellery is here the help whether you need guidance on choosing a value standard, appraising your jewellery, or selling it for a reasonable price. Just contact Luxury Brand Jewellery and let us know what we can accomplish.

If you would like more information, please feel free to contact us. Luxury Brand Jewellery offer a free consultation where our jewellery specialists will sit down with you.