A Question of Value: Reasons to Appraise Your Jewelry

Do you have jewelry that has been passed down through generations in your family, or have you recently purchased an expensive piece of jewelry? Jewelry can be some of the most valuable items in your possession. But just how much is your jewelry worth? When it comes to assessing the value of your jewels, it’s important to take into account more than just their aesthetic appeal. Knowing the true worth of these pieces can help you make informed decisions when it comes to selling, trading, or donating them. Jewelry appraisal is a specialized field, and an expert appraiser can provide you with a comprehensive assessment of your jewelry’s worth. In this blog post, we’ll discuss the top reasons why it’s important to have your jewelry appraised, and why you shouldn’t wait.

A professional appraisal can also provide you with an accurate description of your jewelry and its condition, giving you an accurate assessment of its true worth giving you peace of mind that you have a full understanding of the true worth of your gems and jewels. Appraisals can be done for the purpose of insurance, estate planning, and protection, or simply to gain a better understanding of the market value of the item. Additionally, getting a periodic appraisal can ensure that the value of your jewelry is kept up to date, and that you are not overpaying for pieces that are no longer worth what you paid for them. Appraisals can also help you determine the best time to buy or sell jewelry, allowing you to gain the most value for your pieces. Ultimately, jewelry appraisal is an important step in protecting your valuable assets and understanding the true worth of your jewels.

To insure your jewelry

Having your jewelry appraised is essential if you plan to insure it. A qualified appraiser will examine your jewelry, determine its current value, and provide documentation of the results. This documentation is essential for insurance purposes, as it will help insurance companies determine the amount they need to provide you in the event of a loss, theft, or damage.

The documentation provides the details of your jewelry, such as a detailed description of the materials and construction techniques used, as well as any identifying marks, like maker’s marks, hallmarks, or signatures. The appraisal also provides an estimated replacement value for your jewelry, which is the value insurance companies use when providing you with coverage.

To get an accurate value for estate planning or tax purposes

Fair Market Value is used for estate purpose appraisals. What exactly is Fair Market Value?

“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 to sell and both having reasonable knowledge of the relevant facts.

The fair market value of a particular item of property includible in the decedent’s gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate.

Thus, in the case of an item of property includible in the decedent’s gross estate, which is generally obtained by the public in the retail market, the fair market value of such an item would be sold at retail.”

(Treasury Regulation 20.2031-1(b))

Having your jewelry appraised can help you determine its Fair Market Value, or FMV. This is especially important when it comes to estate planning and taxes. If you're looking to settle an estate, give jewelry as a gift, or if you're hoping to pass down pieces to family members, it’s essential to know the FMV of each item. This will ensure that the right amounts of inheritance taxes and estate taxes are paid accurately. Additionally, knowing the exact FMV can also help you determine whether a piece should be donated or sold. An appraisal can help you make an informed decision on how best to use your jewelry for estate planning and tax purposes.

Because the value of gold and gemstones fluctuates

The price of gold and gemstones can fluctuate over time, and it’s important to know the value of your jewelry to make sure you’re properly covered. Knowing what your jewelry is worth is especially important if you plan to sell or trade it in the future.

Gold Prices - 100 Year Historical Chart courtesy of macrotrends.net

Having an appraisal helps you track the changing value of your jewelry over time, so you can make decisions based on current market prices. A professional appraiser has the expertise to provide a reliable assessment of the fair market value of your jewelry.

For example, the cost of gold has drastically increased in the past 20-25 years. In April 2000 the price of gold was $488/oz, only eight years later it almost tripled to $1267/oz (April 2008) and continued to rise to $1816/oz (March 2023).  Or you may have a piece that was purchased years ago with gemstones that are now more valuable due to rarity or lack of availability. An appraiser will be able to factor in such details when evaluating the value of your jewelry.

To get the most accurate evaluation of your jewelry’s current worth, it’s important to have it appraised regularly. An appraiser will consider all factors impacting the price, including material quality, condition, labor cost for repairs or restoration, and current market prices for gold and gemstones. With regular updates, you’ll always be sure that you’re getting a fair price for your jewelry.

It’s also a good idea to have an appraisal done before making a purchase. This will give you an understanding of how much the item should cost and if it’s worth the asking price. A professional opinion from a qualified appraiser can ensure that you’re getting a fair deal.

Verify your online or vacation jewelry purchase

Whether you are buying jewelry online or on vacation abroad, it is important to that the piece is exactly what you were expecting. An independent jewelry appraisal is the best way to ensure that you are receiving the quality and value of the jewelry you expected.

When purchasing jewelry online, it is very difficult to know exactly what you are buying without seeing the piece in person. Unfortunately, images provided online can often be misleading and fail to accurately portray the true condition of the piece. Therefore, it is important to take extra precautions when making an online purchase. By obtaining a professional appraisal from an unbiased expert, you can get confirmation of the quality and value of the piece.

A not-so-unusual scenery on the appraiser’s desk: a client’s travel loot. The fair market value of the whole merchandise was a fraction of what the client paid.

If you are buying jewelry on vacation, it is also important to have it appraised when you return home. Often times tourist shops or other stores will take advantage of unsuspecting buyers who are unable to easily return in order to address any issues that arise. Having your piece appraised by an independent expert can help ensure that you are not overpaying for an item as well as ensuring that you received what you were sold. An appraisal will include detailed information about the type of metal and stones used, as well as an estimated replacement cost.

In both cases, a professional jewelry appraisal can help ensure you are paying a fair price for your jewelry purchase. With accurate information about the piece’s quality and value, you can make an informed decision and avoid any surprises down the road.

Catalog your jewelry collection

Appraising your jewels can also provide peace of mind and help you track the value of your collection over time. If you have a large collection of jewelry, cataloging it can help you keep track of what you own. An appraisal provides a detailed description and value of each item. Knowing the exact characteristics of each piece can help you identify it if it’s ever lost or stolen. Having your collection appraised and cataloged helps with estate planning as well, since you can easily determine the value of all your pieces. You may even want to consider having your collection regularly appraised; this will ensure that the value of your items keeps up with the fluctuating market prices for gems and precious metals, as well as tracking the value of your collection over time.