Appraisal of jewelry implies an assessment of its value. This is important for several different reasons, most importantly for insurance objectives and selling purpose. Jewelry appraisal is performed by a jewelry appraiser in a variety of different forms.
What is jewelry appraisal in a true sense?
When a jewelry piece is provided to a broker or a dealer for sale, or to a pawnshop for a getting short-term loan, then the procedure to determine the dollar amount that has to be provided is termed as an appraisal.
How is the jewelry appraisal done?
Whether you buy silver jewelry or any other type of jewelry, it needs to be evaluated by the dealer or broker, or any skilled jewelry appraiser. The broker or dealer usually makes an instant offer. On the basis of received offer, jewelry owner makes a decision to accept or reject the offer.
There is no written form of valuation for such kind of appraisal. Also, the amount that has been offered varies for every broker or dealer. Jewelry purchasers and pawnbrokers evaluate jewelry and provide free of cost offers as their prime motive is to earn a profit from the entire transaction.
What are the different types of jewelry appraisals?
Written form of jewelry appraisal is created for variety of reasons. Two of the main reasons is “insurance appraisals” and “fair market value appraisals.” A written form of appraisal is formal in comparison to the rapid assessment that results in an offer to either purchase or lends. It is done by a professional level jewelry appraiser who is skilled in gemology and is equipped with all the resources, information, and experience to generate a reliable written document.
These are the documents that are used by insurer to provide the actual cost of jewelry for its replacement or for its compensation in case of its theft, damage, or loss.
Fair Market Value Appraisals
Fair market value appraisals provide a cost estimation of a jewelry piece if it gets sold in a specific market. These appraisals are mostly used in settlements of divorce or in the estate property distribution.
Periodic appraisal of jewelry helps its owner to know about the current market value of their precious asset based on the present market fluctuations. A good knowledge about the concept and types of jewelry appraisals would help in determining its right price that would be helpful in any future use.