Appraising is more than just putting a dollar value on an item. One must be able to not only identify, but witness, estimate status, excellence, and its potential in the market as well as authenticity of an article. One must have the knowledge of old style with modern trend. This information is gathered by not only current price guides, but by comparable's, and contacts with jewelers, estate dealers, wholesale dealers, and auction houses.
The main approaches to an established appraisal are to identify what type of appraisal. Then to specify the market in which the item is being valued. After we name and support the choice of value approach, we research and establish documentation for the monetary results. Also to offer a full descriptive narration of the article in a manner that it can be easily understood. Lastly to determine and support provenance.
There are different types of appraisals for various situations, but obtaining a certified appraisal for your gems and jewelry will insure their safety against loss, theft, and damage. The first decision a customer will make is what is the end result for this item will be. Perhaps it's a wedding ring that needs an insurance appraisal because it get's worn everyday, and could suffer from where and tear. In some cases a loved one has passed, and has left behind a treasure of jewelry in which you know nothing about and may need an estate jewelry appraisal. At times a donation is being made to a local charity (philanthropic organizations, educational institutions, museums, and auctions) the person donating may be entitled to a tax deduction.
At times, Jewelry is being resold. If this is the case an appraisal reflecting a different type cost/value structure is used to reflect value. It is, "the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts." Prices noted in such appraisals are estimates of current market value of the jewelry in it's current state. These items do not represent replacement values of like merchandise.
Appraisal Types
RETAIL REPLACEMENT (Insurance)
A retail replacement appraisal, or insurance appraisal, is required by an insurance agency before it will schedule jewelry on an individual policy. Scheduled property is a list of valuables and its appraised value of each item for which in an event of loss, damage, or theft an insurance company will pay.The appraisal will be the record that can be looked upon by the insurance agent to set the premium and determine the amount of coverage is needed. Examples of scheduled property are precious metals, mounted and un-mounted diamonds, and colored stones, watches, clocks, coins, silverware, and hollowware.
Replacement cost (new) - refers to the cost of property as good as, but no better than, the item replaced. The article should be identical to the item being replaced, therefore the term is useful only when a new identical item can be obtained.
Replacement cost with a comparable item means using the current market price for an item of like kind, quality, and condition. This is the proper approach for antiques. It will be noted on the report that the replacement is for a comparable item, not an exact replicate.
Reproduction cost is the current price of constructing an exact duplicate or replica item of jewelry, using the same materials, design, and construction. I use this method in the cases were items that may be pf very unusual custom design, or could be used in the case of an insurance appraisal to determine the cost of replacing half of a set.
Appraisals will reflect the retail cost incurred to replace or reproduce and gems in like quality and jewelry mountings in like manufacture and degree of craftsmanship but in band new condition. Such costs are estimates of the averaged current market prices at which the appraised items may be purchased in the average fine jewelry store and do not reflect the price at which the appraised item may be purchased from any one jewelry store in particular. The appraisal must be accurate and detailed description because of insurance companies insure the items not their value.
ESTATE JEWELRY APPRAISAL
Market value is used for estate evaluation purposes, and is an assessment based on what a willing buyer and seller would agree to without a forced sale. Appraisal criteria for estates have been legislated to include specific information and data, but do not include the factors that a insurance replacement appraisal does, and this results in a lower price.
The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. The market value of a item of property includible in the descendent's gross estate is not to be determined by a forced sale. Nor is the market value of an item of property to be determined by the sale price of the item in a market other than that in which such items is most commonly sold to the public, taking into account the location of the item wherever appropriate. in the case of an item of property includible in the descendent's gross estate, which is generally obtained by the public in the retail market, the fair market value of such an item of property is the price at which the item or a comparable item would be sold at retail.
DONATION APPRAISALS
When jewelry is donated to a charity (philanthropic organization, educational institutions, museums, and other public institutions), the donor may be entitled to a tax deduction. The estimation of value is based on the current market value. Donation appraisal is subject to certain IRS regulations. Sale of comparable properties can be important in determining Fair Market Value. The most common market will be the one with he greatest number of transactions, between willing buyer and willing sellers, of comparable merchandise.
ANTIQUE OR VINTAGE APPRAISALS
In that antique jewelry, which is anything 100 years or older, or vintage jewelry, 50 years or more, cannot be actually or exactly replaced in today's market calculations of value based on the estimated cost incurred to replace said items in newly manufactured condition would be inappropriate. With exception of gemstone evaluation, estimates of value for antique or vintage jewelry items i a reflection of the averaged costs incurred to replace said item of similar condition., motif, and degree of craftsmanship subject to the availability of said items, and their similar's in the market.
DIVORCE APPRAISAL
An appraisal for a divorce settlement should usually be based on Fair Market Value by a valuation service. This will most likely involve jewelry or loose gemstones, precious metals purchased as common property for investment. In equitable distribution states, a judge awards each party a certain percentage of the total value of the combined holdings. In title jurisdictions, property that is under one party's name remains his or her property, and the title cannot be affected under the matrimonial laws. If both parties are on the deed or title, transferring title to one mane and trading assets are two of the only ways to resolve the situation. It applies to anything that the client acquires during the marriage, except for the separate property which is defined as property acquired before marriage or acquired by inheritance or gift from someone other than the spouse, personal injury, property acquired for exchange for separate property, and any other property that might have been split up in a prenuptial agreement.
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NAJA accredited Bay Area certified gemologist/appraiser offering certified appraisals. Specializing in mounted and unmounted diamond and colored gems from estate to contemporary jewelry. Qualified through training and experience to render appraisals for certified gemologist, Market Value, Estate jewelry appraisals, Donation, and Dissolution of Marriage. Find out more at> http://jewelryappraisalcalifornia.com
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