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What is an Appraisal?

What is an Appraisal?

Posted on Friday, October 7th, 2011 at 10:34 am by Preston

It is a good idea to have your diamond engagement ring appraised and insured.

What's the difference between an appraisal price and a purchase/sale price?

An Appraisal is an estimate of value, plain and simple.  If anyone looks at your piece of jewelry and says "this is how much it's worth" or "this is how much I'll pay you for it", that is technically an appraisal.  However, the most common type of formal appraisal in the jewelry industry is a jewelry insurance appraisal.  This gives the approximate cost to replace an item in a retail jewelry store (what you could expect to pay when walking into a store near you).  There are also estate appraisals, which value an item differently.

The purchase/sale price is the amount someone (i.e. a jeweler or "gold buyer") would pay for the item, second-hand.  This can technically be called an appraisal, but it is a much different type of appraisal.  It would be better to call it an "estimate to purchase".  When someone is buying a piece of jewelry to re-sell, the value will be lower than an insurance apprasial.  This is because the buyer has to sell it to someone who then sells to a retailer who then sells to the consumer.  Everyone down the line has to make money to make it worth it.  Because of this, the estimate to purchase will be quite a bit lower than the "appraised value" above.

It is always a good idea to have your jewelry appraised and insured against loss/damage.  At K-Jon's, we have certified appraisers who can give you a professional, accurate jewelry appraisal.