The
10 Commandments of Jewellery Appraisals
INFORMATION
THAT MUST BE INCLUDED ON AN APPRAISAL
Every
appraisal should include the following information:
1.
Full name and address of the client.
2. Date the appraisal was performed.
3. Spot price of gold.
4. Reference number.
5. Purpose of the appraisal (i.e Insurance, Estate/Probate, Liquidation).
6. Whether or not the values include PST and GST.
7. Full name of the appraiser.
8. Qualifications of the appraiser.
9. Signature of the appraiser.
10. Address and telephone number of the appraiser.
TEN
COMMANDMENTS OF JEWELLERY APPRAISALS
Just
about everyone owns fine jewellery that has both monetary and sentimental
value. But would you know how much it was actually worth if it was lost,
stolen or damaged? Probably not, unless you have a professional appraisal,
according to the American Gem Society (AGS), a professional organization
of fine jewellers and jewellery suppliers operating in the U.S. and Canada
which is dedicated to consumer protection.
Getting
an appraisal should be one of the first things you do after purchasing
or receiving any piece of jewellery. But before you rush out to have your
gems appraised by just anyone, the American Gem Society recommends you
follow these "Ten Commandments of Jewellery Appraisals:"
1.
DEAL ONLY WITH A QUALIFIED, TRAINED APPRAISER.
You
wouldn't go to a doctor or a lawyer who didn't possess the proper credentials;
don't accept any less from a jewellery appraiser. A qualified appraiser
is someone who, in addition to having gemmological credentials, is trained
in determining an item's value based on its materials (gemstones, metals,
etc.) and market value. The appraiser must provide a thorough, detailed
document which would supply a third party with all pertinent information.
Appraisal expert Cos Altobelli, a Certified Gemmologist Appraiser with
the Society, also warns against appraisers who possess appraisal credentials
that require nothing more than paying a fee for a certificate. "The
American Gem Society is the only organization in the country that examines
its Certified Gemmologist Appraisers with a hands-on appraisal test,"
Altobelli says.
2.
BE CLEAR ABOUT THE PURPOSE OF THE APPRAISAL (Insurance, Donation, Estate)
When
you take your jewellery in for an appraisal, it is critical that the appraiser
knows its purpose. An insurance appraisal, for example, requires jewellery
to be appraised at retail value while an estate appraisal does not.
3.
BE WARY OF BRIEF WHILE-YOU-WAIT APPRAISALS.
A
professional appraisal should include in-depth descriptions of the jewellery.
A completed, written appraisal should include the following:
a) The millimeter dimensions, quality, weight and identification of each
stone and a description of small stones or groups of stones.
b) Cut, colour, clarity and carat weight of the diamonds.
c) For coloured stones, it should include the hue, tone, saturation, transparency
and clarity of the stones.
d) For pearls, the report should describe the lustre, nacre thickness,
colour, shape and blemishes.
e) Identification and assessment of the workmanship of the metals used
in the mounting.
f) A thorough description or photograph of the item.
g) The estimated value of the items.
4.
BE CAUTIOUS OF APPRAISERS WHO CHARGE A PERCENTAGE OF THE JEWELLERY'S VALUE
FOR THE APPRAISAL RATHER THAN AN HOURLY FEE.
"This
is disallowed by the Internal Revenue Service and is considered unethical
by most professional organizations," Altobelli says. Just as a lawyer
or accountant charges an hourly fee, realize that a qualified appraiser
will charge fees commensurate to professional fees charged for his or
her services, depending on the intensity of work and the level of expertise
required.
5.
BE PREPARED TO LEAVE YOUR JEWELLERY WITH THE APPRAISER.
Properly
done appraisals require thorough study and examination of the jewellery.
Items are cleaned and checked for loose stones and any damaged mountings.
The time is also determined by how many items are being appraised and
the level of expertise required to appraise them (for example, an extremely
rare coloured stone will require more research and study than a less valuable,
less rare gem).
The appraiser should also complete (and give you a copy at the time you
bring your jewellery in for an appraisal) a detailed appraisal take-in
form which includes a description of all merchandise and an agreement
of the estimated value.
6.
HAVE YOUR JEWELLERY APPRAISALS UPDATED APPROXIMATELY EVERY TWO YEARS TO
KEEP CURRENT WITH CHANGING GEMSTONE AND METALS VALUES.
This
is important so that your jewellery is not over-or under-insured. It is
also important to understand that jewellery is a commodity that is influenced
by the global markets, therefore prices can fluctuate up or down based
on the economy.
7.
KEEP THE ORIGINAL APPRAISAL WITH OTHER SAFE PAPERS AND SEND COPIES TO
YOUR INSURANCE COMPANY AND ANY OTHER PARTIES INVOLVED.
8. WHEN PURCHASING NEW JEWELLERY, MAKE SURE YOU GET A DETAILED DESCRIPTION
AND APPRAISAL FROM THE PERSON FROM WHOM YOU ARE BUYING THE PIECE TO INCLUDE
IN YOUR HOME INSURANCE COVERAGE.
The
seller has first-hand knowledge of the weights and stones, etc. in the
jewellery and will document the most accurate information.
9.
GET THE APPRAISAL IN WRITING, SIGNED BY THE APPRAISER.
Do
not accept verbal appraisal.
10. GET THE BEST INFORMATION POSSIBLE BEFORE HAVING YOUR JEWELLERY APPRAISED.
--
Estela Pelegrin & Geoff
Dominy
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