How Does A Gemstone Appraisal Work?

Over the years of owning a gemstone or piece of jewelry, the value of it changes based on if it is rare, the cut, and carat; whether it is a simple or extravagant piece purchased by yourself or given as a gift to you at some point during your life. Many people may be unaware of this, but you can request an appraisal on your gemstone or jewelry in case of unfortunate events (if it is stolen or you wish to claim collateral for example) or if you wish to resell it to someone else and want proof of its value.

To find out how much an heirloom is worth or if you want to get the opinion of a jeweler on a recent purchase, an appraisal evaluation by someone who is certified will help you to better understand the value of a piece of jewelry or individual gemstone. But how exactly does a gemstone appraisal work and what will a person’s evaluation of a piece of jewelry mean for you? What are your first steps to have your jewelry evaluated and why should you consider this if you have not done so already?

Finding a Certified Appraiser

Obviously, the only person who can really tell you the value of a gemstone is someone who is experienced in gemology and understands all of the different gemstones like the back of their hand. Jewelers will know all about the gemstone industry, but you should contact a certified appraiser because they can easily tell you the value of two of the same gemstones by looking at the cut and evaluating how old the gemstones are.

For a good appraisal for your gemstone, what other qualities should you look for from an appraiser to ensure they are 100% accurate in telling you the value of your gemstone?

Unfortunately, just about anyone like other professions can claim to be an appraiser so be sure to ask for their licenses that prove they are a personal property appraiser. A person can learn about how to value different objects but only does with the right experience in their field will really be able to what objects are real from the fake and what the exact property value of the objects are.

The American Gem Society has a listing of certified gemstone appraisers and all of the members must take an annual Recertification Exam to ensure their knowledge of gemstone appraisal is up to date. What more, be sure that they are certified by the American Society of Appraisers as well. These appraisers are trained in several areas besides just Gems and Jewelry including:

• Appraisal Review and Management
• Business Valuation
• Machinery and Technical Specialties
• Personal and Real Property

Besides being educated on gemstone appraisal and having an updated resume, you should seek out an appraiser with the right certifications. If the appraiser does make an error, the appraiser is protected by omissions insurance so that you can be compensated for their mistake.

The Importance of Gemstone Appraisal

A gemstone appraisal is very important to certify that your jewel is the real deal and no false claims have been made on it. Many people will use appraisal forms for the following reasons:

• Liquidation
• Determine Value
  • Homeowner’s Insurance
  • Estate Tax Evaluation
  • Divorce
  • Collateral

The basic appraisal should include the following essential information:

• Description
  • Weights
  • Grades including color by comparing it with other gemstones
  • Measurements
  • Treated or untreated
  • Natural or synthetic statement
  • Photograph of gemstone
  • Value
    • Cash value at current market price
    • Replacement value at which the insurer will pay you a specific amount by the market price
    • Agreed value if loss occurs

Along with descriptive information about your gemstone, there are certain forms that need to be included by the appraiser for insurance from the Jewelry Insurance Standards Organization which provides jewelry insurance forms for free:

• JIS0 805-Jewelry Sales Receipt for Insurance Purposes for when you purchase jewelry and as the retailer to fill it out.
• JISO 806-Jewelry Document for Insurance Purposes for a second appraisal
• JISO 78-Jewelry Insurance Appraisal-Single Item a description form with very detailed information on a single item. Only a Certified Insurance Appraiser can complete this form.
• JISO 79-Jewelry Insurance Appraisal-Multiple Items is a description form with very detailed information for multiple items. Only a Certified Insurance Appraiser can complete this form.

If you wish to auction something or proof the value of your jewelry, a gemstone appraisal can help you make a claim for the value of that piece. Don’t wait until it is too late either. You never know when the occasion will arise that you need to have an appraisal on hand for not just jewelry, but other important factors as previously listed.

When you decide to make the investment to purchase a gemstone or jewelry for yourself or another person, be sure that it includes a gemstone appraisal certificate that it has been certified and examined by an approved Gem and Jewelry Appraiser. Again, you never know when you will need the certificate in case of certain events or if you wish to sell it to another vendor.

By having an appraisal to go along with your gemstone purchase, you will feel better about protecting the value of it for the future. If it is lost, damaged, or stolen, you will be insured for anything that should happen in the future.