Types of Jewelry Appraisals

Are you interested in getting your diamonds, gemstones or fine jewelry appraised? We, at Royal Design Fine Jewelry proudly provide the world’s most luxurious diamond jewelry for clients in Atlanta, and throughout the US. Have you heard about the advantages of obtaining a professional jewelry appraisal, but aren’t sure what type of appraisal is right for your needs? Here is some more information that can help you make the best decision for your jewelry collection. 

Appraisal vs. Certification

Some people become confused when they hear the term appraisal, and assume it is the same as certification. However, this isn’t the case. Diamond or gemstone certification is conducted through a reputable institute such as the Gemological Institute of America (GIA) or the American Gemological Society (AGS). These specialists will determine the cut, clarity, color and carat weight of the diamond or gem. And while these characteristics are often used to establish the quality of an individual stone, an appraisal is still needed to fully establish the market value of a piece of jewelry. An appraisal will include a wide range of additional factors such as the fame of the item’s designer, it’s age, complexity of design, current consumer trends and more. 

Fair Market Value 

Fair Market Value appraisals are performed when an item is bought or sold. The price is then set according to the current market standards. These kinds of appraisals are frequently used for charitable donations or the sell of jewelry in used condition. 

Replacement Value 

A replacement appraisal is one of the most frequently performed appraisals. They are primarily used during insurance claims to establish the amount the item is worth if it is to be reproduced using new materials. This form of appraisal is requested when luxury jewelry is stolen or lost. The replacement value can sometimes be more than fair market value. This is because there are other factors to consider such as labor and the cost of new precious metal and freshly cut stones which may have risen in value since the creation of the original piece. 

Liquidation Value

Liquidation value is the rarest form of appraisals used today. Often, liquidation value is determined during emergency situations when someone wants to sell items quickly. For example, someone may need to get a liquidation value of a ring for loan collateral. Or, someone may need to price a large jewelry collection that will be placed in an estate sale following an unexpected death. Divorces are also a frequent cause for needing the liquidation value of a jewelry collection. A liquidation appraisal will always be priced far less than their fair market value. Therefore, a liquidation value does not reflect the true worth of jewelry under normal conditions or circumstances. 

Do You Need a Jewelry Appraisal in Atlanta, GA? Visit Royal Design Fine Jewelry

Have you been searching for professional jewelry appraisal in Atlanta, Georgia or a surrounding metro area community? Then call or visit Royal Design Fine Jewelry store in Atlanta, Georgia. Our experienced jewelers are always ready to help our clients find solutions for their unique needs. 

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