Getting an Appraisal

Before taking your item out to have it appraised, it is vitally important that you learn a little about how to get an appraisal. Please go to the section called Policies and Procedures, and look at item #14 which deals with how to get an appraisal. And then, go to Frequently Asked Questions #5, #22, and #23 and learn more about appraisals. Finally, please be sure to read the paragraph below about appraisals. This information has been put out by various insurance companies and is designed to help you and others get meaningful appraisals on jewelry:

"When getting an appraisal, it is absolutely crucial that your appraisal be done by a properly certified, independent gemologist, NOT AFFILIATED WITH AND NOT A PART OF ANY RETAIL JEWELRY BUSINESS. An appraisal done by someone who also has a retail jewelry business is TOTALLY WORTHLESS. If the person has a retail jewelry business or a retail jewelry interest, it is very, very common for him to give you a very low appraisal as a way of punishing you for not buying from him and as a way of trying to convince you that you should have purchased from him. This type of appraisal is worthless."

Source: The Insurance Institute, Subcommittee on Jewelry.

Note: To find such a person in your area, just key in "Independent Jewelry Appraiser" in any internet search engine.

Getting an Appraisal

When it comes to valuing Grandma's heirloom jewelry, the neighborhood jeweler, an appraisal company, or even a pawnshop will give you a dollar figure.  But whom can you really trust?

That's hard to know because appraisals of the same piece of jewelry can vary widely.  To see just how much they vary, we solicited several appraisals for a vintage watch in New York's diamond district.  First, we asked Donald Palmieri, a Master Gemologist Appraiser, certified by the American Society of Appraisers, to give the art-deco diamond wristwatch a thorough going-over.  After spending almost two hours cleaning it and scrutinizing the diamonds and metalwork, he judged that it would be worth about $1,550, an estimate he included in a folder with photos of the piece and a stone-by-stone description.

To see how close other appraisers came, we anonymously tried five people - an independent appraiser and four retail jewelers.  The appraisals ranged from a lavish $3,500 to a measly $500.  The retailers and appraiser raced through the valuations taking at most 5 to 10 minutes.  Only two would give us an estimate in writing.  Most erred, miscalculated the carats, and mistook the platinum for less expensive white gold.

Here's how to go about an appraisal.

FIRST, decide whether an appraisal is necessary.  Appraisals are pricey.  Ours ranged from $45 to $150, but appraisers usually charge $75 to $150 per hour, and in some large cities, they charge as much as $225 per hour.  A retail jeweler with no certification charged us $50 for a written appraisal.

So unless you own gems, sentimental items for which you want an identical replacement, or items worth more than $3,000, Palmieri says that an appraisal isn't worthwhile.  If you're unsure, hire an appraiser for a brief consultation to decide whether items need more scrutiny, or ask your insurer.

SECOND,  look for an appraiser with the proper credentials.  Anyone can perform appraisals legally, but you want someone who has been trained and tested, and who is a member of an association to which you can complain if he or she errs.

Appraisers should understand the jewelry market.  Several associations oversee or validate members' educations, including the American Society of Appraisers (ASA), the International Society of Appraisers (ISA), the American Gem Society (members are designated as CGA) and the National Association of Jewelry Appraisers (NAJA).

Gemological training ensures that the appraiser can grade gems accurately.  Look for one of these designations:  Graduate Gemologist (GG), Certified Gemologist (CG), Accredited Senior Gemologist (ASG), Fellow of the Gemological Association of Great Britain (FGA).

Do not get appraisals from a retail jeweler who sells jewelry.  Some sellers will automatically appraise pieces for a very small amount just to penalize you for not buying from them.

Appraisers should never charge a percentage of the appraised value and should always set a rate (per hour, per piece, or per job) before doing the appraising.  You will probably have to leave your jewelry with the appraiser, so make sure that he or she has theft insurance.

THIRD, choose the right type of appraisal.  There are about four different types of appraisals, so always specify how you will use the appraisal, because valuations will differ by appraisal type.  For example, an insurance appraisal will probably be 200% or 300% lower than a retail-value appraisal, because insurers may be able to acquire a replacement piece for you at wholesale.

FOURTH, get it in writing!  Most "free" verbal appraisals are really bids or offers to buy the piece.  The jeweler is giving you a low price in hopes that he can buy it for next to nothing.

A written appraisal you pay for is much more likely to be the real thing.  A jeweler told us that our watch was worth $500, but after we asked for a written appraisal, he came up with an estimate of $1,500, which was close to our expert valuation.

Ask for an appraisal that uses Uniform Standards of Professional Appraisal Practice.  This will ensure that it includes all the relevant information such as type of appraisal and valuation methodology, a firm statement of value, a thorough description of the piece, and the appraiser's name and qualifications.

Source:  Consumer Reports Magazine