What’s That Bracelet (REALLY) Worth?

By David Craig Rotenberg, ECGA (AGS), GG (GIA), CSM (NAJA), CAPP (ISA)

 

Gold Jewelry  With Gems , Chains Close Up Macro Shot Isolated OnJewelry appraisals are important documents that are required for insurance valuations, the settling of an estate, determining the value for tax deductions for charitable contributions, for casualty loss evaluations, or perhaps the division of property in a divorce.

The appraisal is simply a means of factually communicating what a piece of jewelry is worth. It’s the item’s value assessed by quantitative and qualitative aspects as determined by a skilled professional appraiser. This individual should not only understand the science of valuation, but should be able to properly communicate the background on exactly how he or she arrived at that assessment.

Insurance Appraisals

Insurance appraisals are used by insurance companies to determine exactly what cost is required to replace an exact piece of jewelry in the current climate in the event of theft or loss. The appraiser provides a full evaluation of the item, including a detailed description of quality and special nuances of the item. While each insurance company may operate differently, most won’t simply accept purchase receipts since the determined “value” is the key when writing a policy or reimbursing a claim.

Appraisal

Settlement Appraisals

It is especially important to have an experienced appraiser when appraising for tax purposes. When someone dies, jewelry must be categorized to determine fair market value in regards to inheritance tax as applied by the IRS. Fair market value is a different determination than replacement value, which you obtain for insurance purposes. In terms of a divorce, an appraisal might be required to help determine equitable distribution of property. Jewelry is part of the “estate” and needs to be categorized for tax purposes.

The Process

After you contact a jewelry appraiser, they will sit down with you and review the items you want to be appraised. The condition of an item is extremely important; a broken watch from the 1960s, for instance, might be valued like a typical flea market item while a vintage Rolex in great condition from the same time period would be appraised at what it would bring on the second-hand market. Diamond rings normally have laboratory reports evaluating their quality. New jewelry that is being appraised for insurance purposes should be accompanied by receipts from the store where purchased so the appraiser can refer back to the original jeweler if there are questions.

 

Finding a Qualified Jewelry Appraiser

You can contact the American Gem Society (AGS) for a list of certified appraisers in your area. Certification by the AGS indicates that the individual is not only a certified appraiser, but also an expert gemologist. The AGS is one of the oldest nonprofits dedicated to consumer protection in the industry. A certification will usually be displayed in the appraiser’s workspace—this certificate required a lot of time and effort and the appraiser will want to show it off!

Other reputable organizations include the National Association of Jewelry Appraisers (NAJA) and the American Society of Appraisers (ASA). Some people ask if it’s necessary to obtain two appraisals; in most cases, this shouldn’t be necessary, especially if you’re confident you’ve gone to a qualified appraiser.

Over the Years

Before the 1980s, there wasn’t a lot of formal appraisal education and a jeweler might simply assess an item for what they might sell it for in their own showcase. The average jeweler didn’t have a lot of resources—an item might be sold based on what someone told them it was worth.

With the founding of the International Society of Appraisers (ISA) in 1979, appraisal education became more of a studied science. As gemology education blossomed, jewelers were able to conduct research, compile pricing information and attend continuing education as they used their new-found gemological skills for buying and appraisal purposes. Transparency is critical—an appraiser must be able to thoroughly explain how they arrived at a value.

ABOUT THE AUTHOR:

DRotenbergDavid Craig Rotenberg is an AGS-certified gemologist appraiser and one of a handful of CAPP (Certified Appraiser of Personal Property) appraisers in gemstones, contemporary jewelry and antique and period jewelry. He is a member of the Jeweler’s Vigilance Committee Appraisal Bar, has studied with the American Arbitration Association, and is past president of the AGS’s Jewelers Education Foundation, founder and past president of the Delaware Valley Keystone Guild and founder and past president of the Delaware Valley chapter of the International Society of Appraisers. Recognized by the Technical Advisory Service for Attorneys (TASA) for his expertise, he is part of the Jeweler’s Vigilance Committee’s appraisal organization and has conducted jewelry appraisals for the U.S. Treasury Department. Most recently, he completed a global leadership program at Harvard University School of Business.

In addition to offering his appraisal services to customers at David Craig Jewelers in Langhorne, PA, David has appraised multi-million dollar inventories for the federal government and many banks. He has conducted evaluations for a large variety of complex estate and bankruptcy matters and fraud investigations. He also operates an AGS-accredited gem lab at David Craig Jewelers.

We’re an AGS Jeweler!

We are very proud of our new video, “We’re an AGS Jeweler!”

It’s one thing for us to tell you to shop with an American Gem Society (AGS) jeweler, it’s another thing to actually see why shopping with a trusted, AGS jeweler is so important.

To view our short “We’re an AGS Jeweler” video, click the image below.

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Are you ready to find an AGS Jeweler near you? Click here to get started!

Tips from Jewelers Mutual: How to Ship Jewelry, According to Loss Prevention Experts

Delivery man delivering package to customer close up at hand and box

Until the day transporters—like those used in Star Trek—become a reality, sending our valuable items over a great distance still requires shipping. How can this be done safely, discretely, and with peace of mind?

We’ve found the best advice comes from the loss prevention experts at Jewelers Mutual Insurance Company. They’ve provided eight steps to take in order to ensure your items arrive securely and intact. Click here to read their article,  How to Ship Jewelry, According to Loss Prevention Experts.

Tips from Jewelers Mutual: Ring Appraisal—What You Need to Know for Insurance

Jeweler looking at the ring through microscope in a workshop.

When it comes to receiving a ring—whether you are newly engaged, celebrating a birthday, toasting an anniversary, or treasuring an heirloom—you’re probably not thinking about insurance.

When you procure something so precious, for peace of mind, you should consider protecting it. An important step to insuring your ring is to have it appraised.

In the following article, Jewelers Mutual Insurance Company covers the most common misconceptions of ring appraisal, tips for getting a good appraisal, and why they are so important. Click here to read more.

Tips from Jewelers Mutual: End-of-Summer Jewelry To-Do List

Sunscreen, chlorine, and travel are the quintessential elements of summer that put fine jewelry at risk. But now that the sun is setting on summer, it’s time to give your precious gems and metals some extra attention.

Learn more in this blog by Jewelers Mutual Insurance Company, 5 End-of-Summer Jewelry Care Tips to Keep Your Sparklers Shining.

Tips from Jewelers Mutual: When Not to Wear Your Wedding Ring This Summer

We love summer! The season tempts us to let those gorgeous gemstones sparkle in the sunshine, and it’s especially an attractive way to dress up bare skin. But don’t forget that the harsh chemicals in much-needed sunscreen, and the chlorine in the refreshing pool, are harmful to fine jewelry. While you’re having fun in the sun, you run the risk of ruining your jewelry—or even worse, losing it!

Jewelers Mutual Insurance Company offers the following tips on how to keep your jewelry safe during this active season. Learn more by reading their blog, When Not to Wear Your Wedding Ring This Summer.