Jewellery Valuation, Everything You Need To Know
At Luxury Brand Jewellery, we can assist you in determining the appropriate valuation for insurance purposes, the sale of jewellery, or the settlement of an estate.
It doesn't matter whether it's your brand-new engagement ring, diamond insurance, a family heirloom, or just the collection of jewellery you've amassed over the years; all of your jewellery is priceless and it is essential to ensure that it's valued accurately.
What is Jewellery Valuation?
Simply put, a Jewellery Valuation is an appraisal of a jewellery item by a trained professional to ascertain its monetary value.
The materials used, the age of the jewellery, the provenance, the grade of any gemstones, the condition of the jewel, and the method and craftsman who created the jewellery all contribute to its final worth. Some websites provide free valuations before purchases if you want to sell jewellery but lack the appropriate accreditation.
The Importance of Jewellery Valuation
There are many significant advantages to getting your jewellery appraised. Among them are several that include:
- As a matter of insurance (the most popular reason).
- For social objectives.
- In the event of a divorce settlement.
- To provide the necessary documentation to prove ownership.
- In cases requiring a damage assessment.
Do Market Trends Affect Jewellery Valuation?
Market movements may impact the value of precious metals and stones, including gold, platinum, silver, and diamonds. However, even when they hold their value, the margin for appreciation is narrow. Your jewellery is more of an investment bank than anything else.
The size, weight, and purity of a piece of jewellery are the primary factors determining its worth. Because of these immutable characteristics, your jewellery's value won't fluctuate much. The only exception to this criterion would be works that have achieved widespread acclaim and are essentially historical.
Is Jewellery Valuation a Costly Process?
Valuing jewellery is an expensive business. The expense, although significant, is reasonable because of the benefits gained. If you lose a valuable item like a gold watch or diamond ring but don't have insurance to replace it, you'll be out of the full purchase price.
There's no way to replace the memories attached to the jewellery, but at least the monetary worth can be restored. If you want to avoid potential issues in the future, avoid skimping on the value. The insurance on your jewellery might be nullified if there is evidence of fraud in the form of misrepresented value.
Does Jewellery Valuation Determine the Worth of Jewellery?
The value of a piece of jewellery may differ from the amount you might earn if you sold it to a friend or family member.
However, it presents you with an insurance appraisal estimate that accounts for the cost of purchasing an identical piece of jewellery that is both new and good quality. A jewellery appraisal is necessary since you don't want to undervalue the piece.
If the value you report is less than the true value, you will be underinsured, and your insurance claim will be denied.
Value of Jewellery in a Property Division Settlement
Jewellery is often a contentious topic in divorce proceedings. So what method do you use to spread the word? While hiring an attorney is essential, you and your spouse should remember that the jewellery is only worth what it may get at a secondhand sale.
In most cases, this figure ranges between 30%-80% of the RRP. This is because you are paying for the experience and what the jewellery symbolizes. An expert appraisal may help you determine a fair price for the jewellery and help you resolve the dispute.
Our Top Ten Tips for Appraising Jewellery
1. Establish the Purpose of the Valuation
Protection against loss, distribution of property after death, or liquidation are all reasons to consider selling your jewellery. Each kind of valuation serves a unique function and yields a unique figure. An expert jeweller can help you decide which option suits your needs.
2. Examine your Strategy
Depending on your specific policy, some belongings may be automatically covered by the general contents insurance, usually up to a limit of around AU$2700.
There may be no need to itemize your jewellery on your insurance policy if its value is less than this amount. Ensure that coverage for loss or theft of jewellery is enough in the event of an accident. Jewellery insurance experts like TH March are worth considering if you have a lot of valuables.
3. Experience is Crucial; Check that they are IRV-Certified
A legally binding document with an accurate description, an image, and a valuation is essential for your most prized assets. Make sure to include any paperwork, such as Diamond Certificates, that pertains to the jewellery since this will help the appraiser provide an accurate estimate.
Your chosen jewellery expert should have the means to conduct a wide range of tests, including those that can detect lab-created, synthetic Diamonds. In addition, the firm should have expertise in inspecting the item to ensure it doesn't need any more repair work before it can be worn or used.
Insurers often advocate finding a valuer member of a professional organization, like the Institute of Registered Valuers or the Academy of Experts, since such experts are expected to remain current on training and gemmological testing techniques. Keep an eye out for in-house valuers since they won't have to ship your stuff elsewhere and may provide a more rapid return time.
4. Need a Simple Valuation of your Item?
Do you want to know how much your diamond ring is worth? Unfortunately, there is no simple solution to this issue that we get often. The same object might be assigned vastly different values depending on the valuation method.
When selling a ring, for example, you may obtain a certain amount of money, but if you wanted to insure it or include it in your will, you would have to claim a considerably higher value. It would help to ask yourself why you want to know the value. A trained expert may then use this information to recommend the right service for your needs.
5. Cost-cutting Measures might Backfire and Increase Spending
A jeweller's valuation fee will reflect that they have the years of experience, education, knowledge, and specialized tools necessary to provide an informed assessment and valuation.
When insuring expensive and emotional jewellery, you don't want differences in the value to become apparent after an incident and cause your insurance to be null and invalid.
6. Prepare to Abandon your Item
It might not be easy to entrust your treasured possession to a jeweller. Still, correct evaluation requires extensive testing of all the item's parts, which takes time and must be conducted in a laboratory setting.
7. Always Update your Valuation
A policy that hasn't been updated in a significant amount of time is essentially null and void. Some insurers may stipulate how often jewellery must be re-valued because of the high market volatility.
After every two to three years is typical. It's always worth inquiring about discounts on revaluation services; some businesses provide them if they've appraised the identical item within three years.
8. Take Care of your Jewellery and get it Examined Often
Jewellery is vulnerable to more than simply theft and loss; it may also suffer harm. Having your jewellery examined regularly, especially the settings, is an excellent way to ensure everything is in order.
A policy may specify a minimum frequency with which high-priced jewellery must undergo inspection. In addition, a letter from a member of the Institute of Registered Valuers attesting to the jewellery's quality and setting's security may be required by certain insurance providers for high-value pieces. This is fantastic for your sense of calm.
9. Beware of Websites that Provide Insurance Online
Recently, there has been an uptick in valuing jewellery purely online through images; however, these appraisals sometimes fall well short of industry standards, incorrectly naming gemstones and assigning inflated prices.
Furthermore, no matter how high-quality the image is, grading is always necessary for establishing proper values. Unfortunately, grading is done at a minimum of 10x magnification, making it impossible to do so remotely.
In addition, items and jewels cannot be measured, validated, or have laser inscriptions authenticated. Thus many insurance companies no longer accept these assessments because of their extreme inaccuracy.
10. Go with a Reliable Business
It's a good idea to research the company's track record and see whether they belong to any relevant trade groups. We know jewellery has emotional value. Therefore we want you to trust that they will treat you respectfully and provide excellent service.
Never Sell Jewellery Without Having It Valued First
It might be challenging to locate a reliable jewellery shop to help you accurately appraise your valuables. But, unfortunately, many shady businesses that don't know what they're doing also provide jewellery assessment services.
However, you can get an expert opinion on the value of your jewellery and guidance on when and how to sell it at a few select places. The presence of in-house specialists is a positive sign that a business can be relied upon to provide an accurate jewellery assessment.
But, of course, you should also keep an eye out for the company's expected lifetime and how closely its valuation matches the market's worth.
How do I know what my jewellery is worth?
Examining your jewellery for a hallmark is the quickest approach to determining its worth. In addition, you may learn useful information about the piece's worth, such as its metal composition, place of origin, manufacturer, and designer.
Do Jewellers charge for valuations in the Australia?
They do. Experts like jewellers and certified valuers who provide appraisal services need to be compensated for their knowledge, experience, and the resources they utilize to do their jobs.
How do I value my diamond ring?
The value of a diamond is based on its carat weight, colour, cut, and clarity, known as the "renowned 4 Cs." An appraiser will use these four aspects to estimate the diamond's value, but the band's quality will also be considered when determining the worth of a diamond ring.
Is jewellery marked 925 worth anything?
92.5 per cent is not an acceptable price for gold. In most cases, a piece of jewellery branded "925" or a similar number is not made of solid gold, despite appearances to the contrary. Instead, it is more probable that sterling silver was used for the piece's basis and that gold plating or some other kind of gold application was used for the surface.
How long does a ring valuation take?
Most jewellers get expert appraisals from other sources; thus, you should verify with the merchant but be prepared to wait three to four weeks for your valuation. Numerous jewellers located on high streets often host valuation days for customers. Remember that you may be required to make a reservation in advance due to their high demand.
How is jewellery valued for Luxury Brand Jewellery?
Luxury Brand jewellery values are based on current market prices. Which is to say, how much money you think you may make if you sold the jewellery at an auction, to a jewellery store, or on the open market. If the jewellery meets our standards for a desirable secondhand item, we will make a formal written offer for the item's fair market value.
In conclusion, determining the value of costly jewellery is beneficial for anybody who owns such jewellery, particularly if the item is to be sold.