Appraisal Value
When people purchase a fine watch or piece of jewelry, they probably never
expected that one day they would want, or need to, sell it. And when the item
was purchased, a retail appraisal was probably included with the purchase.
Let us take a moment to explain appraisals.
A retail appraisal is typically used for insurance purposes in the
event of loss or theft. This appraised value takes into consideration
that some jewelry (particularly diamonds of 1.00 carat or more)
increases in price over time.
The appraisal takes into
account the mark up by the retail jeweler — often times double or even
triple of their actual cost — and the fact that many insurance
companies are reluctant to pay the full appraised price. This is why
the appraisal is typically higher than the actual price paid for the
item — not because the retail jeweler decided to give you a good deal!
WHAT'S IT WORTH?
Now that we know about
appraisals, what does this mean in terms of your jewelry?
Unfortunately, it means that you will not get the appraised price for
your jewelry.
Because there are no uniform
guidelines, laws, or rules for jewelry appraisers, the appraisal price
varies significantly for the same item. The value does depend on when
the item was purchased, when it was appraised, and who did the
appraisal. In general, the true value of your jewelry is usually
between 20%-50% of the appraised value. And if you go to a pawn shop,
they will offer far less!
Copyright © 2006. Buckingham Estate Buyers. All rights reserved
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