Diamond Valuations: Are they really worth it?
It is not uncommon to be curious about the value of your diamond, especially if you received the diamond as a gift or through inheritance. However, it is rare for the diamond to be gifted with a valuation or appraisal.
Therefore, to avoid awkward questions, have your jewellery appraised. A jewellery appraisal, also known as a jewellery valuation, is a document received from a jewellery appraiser that describes the item of jewellery being valued and then gives a value that the item. High end jewellers can also offer jewellery valuations. However, exercise caution when relying on a jeweller valuations, they can be rather variable and rather inaccurate.
Also, people can often be uncertain what a jewellery appraisal is actually for. As a matter of fact we often get asked about independent valuations. We have put together some common questions to help you better understand.
What are diamonds valued for?
Diamond valuations are necessary to determine how much the stone should be insured for. They are not usually intended to reflect the resale value of the diamond.
For example, I recently noticed that a private buying and selling site was advertising a standard E colour SI1 1.04 carat diamond valued for $26,000. The interested buyer could purchase it at a discount for$20,000! Unfortunately for the seller the ring was not unique. A similar loose stone purchased from ADBW would retail for almost half that amount.
Therefore, diamond valuations should not be relied upon when seeking to purchase a second hand ring.
So does this mean all jewellery valuations are over inflated?
No, not at all. At times a jewellery valuation can be a fruitful exercise. Only recently one lucky woman found out she had been wearing a small mortgage on her hand as costume jewellery for nearly 30 years. The unidentified woman purchased a rather large piece of costume jewellery from a flea market at West Middlesex hospital in West London for $15.00. The woman wore the ring as standard costume jewellery for years before the diamond was valued by Sotheby’s. The appraisal determined that the ring was a 26.27-carat, cushion cut, white diamond valued at over $450,000.
A Sotheby’s representative explained that the rare find was cut in the 19th century. It was not fashioned to highlight the stones natural colour. To the naked eye the ring did not appear to be a rare or exceptional diamond. For the unknown woman however, the apparent dull stone turned out to be a life-changing windfall.
Now before you run off to raid your jewellery box we must tell you the discovery was a rare event. Modern diamond cutting has become a lot more sophisticated and laser inscription is common in diamonds graded by legitimate authorities. So while it is possible you may have a hidden fortune buried in your jewellery box, history indicates it is unlikely.
So, should I get my diamond appraised?
Yes, absolutely, it is very important to make sure you have the correct information for your insurance. Ensure you receive certifiable documents and make copies of them. Insurance companies do not always require the actual purchase receipt, some are happy to rely upon an independent appraisal or valuation*.
Should I get my diamonds I received as a gift or through inheritance appraised?
Yes, absolutely, if only for a bit of fun it is always a good idea to know how much your jewellery is worth, especially if you did not purchase it yourself. You never know you might have a rare gem tucked away.
Should I get my diamond appraised to resell it?
No, not all the time. If perhaps you are wanting to sell a piece and have no idea at all about its qualities then finding this out might help you work out what it might be worth. However, advertising the appraisal value is not indicative of its actual market value. In this day and age any discerning diamond buyer can do a quick Google search to work out if the second hand offer is good value.
*Information contained in this post is not intended to constitute advice regarding diamond insurance. We encourage you to make your own independent enquiries and remind you every insurance company has a variable policy with respect to diamonds.