Wednesday January 22nd, 2020
By Brian Barr
Newport Beach, Calif. — The value of jewelry you have in your drawer or in a safety deposit box does not always continue to appreciate. Many of our clients come to us to have their jewelry appraised just to know if has increased in value. Most of the time the value in jewelry, whether it is 14k gold, diamonds or fine watches, holds a fair amount of re-sale value. Knowing what your items are worth at auction can help you determine the fate of jewelry that has been held for a long time without any idea of value. The beginning of the appraisal process always starts with the simple question "Why?".
Before you decide what to do with a valuable jewelry piece, make sure you know why you need an appraisal of it's value.
There are three main reasons for an appraisal. The first is to simply know what an item may sell for if you've determined that it is better to sell it and put that money to use for some other purpose. This is called a "market appraisal" and is the most common type of appraisal that GoodLife performs. Jewelry without real significant value to it's owner is money tied up in an investment - one that may not pay you back what you expect.
This brings us to our second type of appraisal - the "insurance appraisal". If you have an item that may be rare or difficult to replace, then you will need to know what value an Insurer may pay you if it is lost or stolen. The "insurance appraisal" is a very formal and explicit document. It must adhere to certain standards and provide evidence of an items value. Most insurers expect you to provide this evidence whenever the value exceeds certain thresholds for coverage. You should always discuss with your insurance company whether high-value items are covered by your policy. You may also be required to provide "insurance appraisals" on a periodic basis. Both the price of precious metals and a number of other market fluctuations can drastically affect the replacement value of an item.
The third type of appraisal is an "historical appraisal" which involves researching the provenance of an item and identifying methods and materials of construction. This type of appraisal also produces a replacement valuation similar to the insurance appraisal but takes the effort a step further. If you own a piece with historical significance, you will want to carefully document everything about the piece. The value of many historical pieces is in fact derived from the key historical events and persons who have owned the item in the past.
This brings us back to the original question of 'why' you may want an appraisal in the first place. Fine jewelry and watches may seem like an investment that will always have value. To a great extent this is true however, that value can only be determined when you decide what your plans are for the item. If you have decided you no longer will wear that brooch, ring or necklace, or that Piaget watch looks out of style, then a "market appraisal" is the quickest way to get at its value. If the jewelry piece is a wedding gift or family heirloom then there is no market value that will add to that type of value so it may be best to ask us for an "insurance appraisal". Finally, if you have a significant historical piece then you will want an "historical appraisal" to document the item to the fullest.
If you have some jewelry that you plan to sell and would like to discuss appraisal options, please call GoodLife Auctions
toll-free at +1 866 294 0150 and we will be happy to assist you with valuing your fine and antique jewelry.
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