Can you put a monetary value on something that has huge sentimental importance? How much is that heirloom diamond ring actually worth? Getting jewellery appraised doesn’t take away from the item’s story or ‘cheapen’ its inherent value in any way. In fact, an accurate jewellery appraisal may be one of the most important financial decisions you make, especially if your watch, ring, or pendant could be regarded as high-ticket items. But how do you know the valuation you receive is the right one? And how are jewellery evaluations determined?
In this article, we’ll take an in-depth look at how and why getting jewellery appraised is a good idea, and how you go about getting a truly accurate valuation. We’ll examine what you need to get a precious piece of jewellery appraised, and what factors can influence the final valuation of a piece. We’ll tell you how to find a trusted appraiser, as well as answer some of your most frequently asked questions.
Whether you want a diamond ring valuation or have a watch that’s been handed down to you, or if you’re a collector of precious jewellery, this article should help you get the right appraisal.
What is a jewellery appraisal?
While the terms ‘appraisal’ and ‘valuation’ are often used interchangeably, there is a slight difference between the two. Jewellery appraisal is usually carried out as part of a process such as selling the jewellery at an auction house, getting jewellery insurance, or obtaining financing to buy a particularly expensive or rare piece.
Valuation could be considered to be a less formal process, where the actual monetary value of the piece is ascertained, based on specific factors such as the current price of precious metals, the clarity, quality, and carat of any gemstones, the rarity of the piece (if it’s been made by a particularly famous jeweller), and its condition.
Once your appraisal expert has reached their conclusions, they’ll normally present you with a valuation report. This is particularly important if you’re ascertaining the value of precious jewellery and watches for insurance, or if you are in charge of cataloguing valuables for probate or for an estate where the value may result in the estate falling into a different inheritance tax bracket. Your valuation should include:
• A statement detailing why the appraisal or valuation has been carried out (for insurance or probate, for example)
• A detailed description of the item, including the type of precious metal (gold, platinum, etc.), the type of any gemstones, their size, cut, and quality, as well as their weight in carats. It should also include information on any special detailing (such as the name of the goldsmith, any assay marks, or place of origin, such as renowned Scandinavian jewellery houses.
• The four Cs of diamonds (colour, cut, clarity, and carat)
• Photos of the jewellery (usually hard copy photos to avoid any issues concerning doctoring of digital pictures)
• The value of the piece in monetary terms, according to current market conditions
• The date, name, and address of the person carrying out the appraisal, which should be signed and can also be notarised by a third party.
Why do you need to have your jewellery appraised?
Leaving aside the question of value for probate and estate sales to one side for a moment, there are several other reasons why jewellery evaluations are important.
Protecting your valuables
It’s always hard to put a financial worth on something that may be irreplaceable when it comes to sentimental value. But the cold fact is that these days, almost everything has a monetary value, including jewellery. Knowing their value means you can ensure repairs and servicing are carried out in line with the piece’s financial viability. For example, knowing that a ring may have little financial value can determine how much you spend on repairs if the setting is damaged.
Insurance
We have already mentioned insurance, but it is worth taking a quick, more detailed look at the role of jewellery valuation when insuring individual pieces. Most home contents insurance policies include a provision to cover some jewellery.
However, there are upper limits to the value of an individual piece that can be included in a standard home contents insurance policy. If your item is worth more, then you may need to take out specialist jewellery insurance to cover the value of the piece’s true worth.
Protecting from loss, damage, or theft
This relates to the question of jewellery insurance and whether your standard home contents cover is enough to reimburse you if your jewellery is lost, damaged, or stolen. Without the right level of protection, it could cost you financially if you later want to replace the item with another of similar value. A jewellery evaluation will ensure you know exactly how much the piece is worth, and how much cover you need to protect your investment.
Selling your jewellery
The market for second-hand jewellery is very buoyant, with high-value pieces regularly sold at auction. Auction houses will require a valuation before they include a piece in the catalogue, to ensure reserves are realistic and the sale price reflects the jewellery’s actual worth. Put simply, a detailed jewellery appraisal and valuation will make sure your piece is sold for a fair price and isn’t under-valued.
A valuation will also act as part of the piece’s provenance and can even be used as evidence in ownership disputes.
Steps to obtaining a jewellery appraisal
Getting jewellery appraised is a relatively straightforward process. However, to get an accurate appraisal, it’s important to follow a few guidelines.
1. What is the purpose of your evaluation? – Whether it’s for insurance purposes, you wish to sell the piece on, need to value an item for probate, or simply out of mere curiosity, the purpose will determine what kind of appraisal you get.
There are different types of appraisals for various reasons, including:
• Insurance valuations – necessary if you need to know the replacement value for insurance purposes.
• Probate valuation – These valuations are required for estates and probate, especially when high-value items may affect the likelihood that recipients will have to pay inheritance tax. Probate valuation assigns a value to items based on open market rates.
• Resale valuation – If you want to sell the item, a resale jewellery valuation gives you a reasonably accurate estimate of what you could sell the item for and is especially important if you’re taking a piece to auction. The auction house may require an independent resale valuation of a high-value item, which will then be verified by its in-house appraisal experts.
• Division of assets – This may be required in divorce or family settlements.
2. Finding a trusted appraiser – The best way to find a trusted appraiser isn’t a matter of going online and finding a local jeweller. Our top tip: Contact recognised bodies such as the Institute of Registered Valuers (IRV). They will be able to provide you with a list of independent valuers who hold NAJ IRV status. This indicates that the valuer has had advanced training in the assessment and valuation of jewellery and adheres to industry standards.
The Jewellery Valuers Association is another route to finding valuers who only deal in jewellery, gemstone, and timepiece valuations, and are particularly useful to contact if you have a rare or unusual item such as a prestige watch or vintage jewellery.
3. Getting any paperwork sorted – a paper trail including purchase receipts, jeweller’s notes on any repairs, and previous insurance documents – is an important part of the item’s provenance or history. It can also provide an appraiser with additional information on repairs and previous valuations, which can help form the basis for their final report.
Don’t worry too much if you have little or no paperwork available, though, as it is not an essential part of the process. However, the more information you can provide, the more accurate your final appraisal will be. And don’t forget the box, especially with high-profile brands such as Cartier, Rolex, or Tiffany & Co. These can play a surprisingly big part in the overall valuation process.
4. Preparing your jewellery – Before you hand your jewellery over for appraisal, it’s a good idea to clean it thoroughly. You can check out our blogs on how to clean your jewellery for more information and guidelines on how to do this. A simple, gentle soak in warm, soapy water, followed by a rinse and allowing the piece to air dry, is usually all that is required to take off surface dirt, grease, and oils from your skin.
Once it’s been cleaned, keep it in a soft cloth or custom-made jewellery box to protect it while you’re waiting and during transport to the appraiser’s workshop. If you notice any damage or find a loose setting, it’s best to have the piece professionally repaired first before proceeding with the appraisal. Remember to add any resulting paperwork to your provenance portfolio.
5. Booking an appointment – Appointments fall into three general categories:
• An inperson valuation at the valuer’s workshop or office
• A valuation carried out at your home is most often used when you have several items to appraise or when the items are of very high value, and you would prefer not to let them out of your sight.
• Jeweller dropoff, where the item is left at your jeweller’s and is then passed on to an accredited appraiser. This is not the best option, as it adds another link to the chain, increasing the risk of a piece being lost in transit.
When booking your appointment, remember to ask about the appraisal cost, how long it will take, and whether an item will be sent for external testing.
What to expect during a jewellery valuation
A professional jewellery appraisal is a comprehensive examination of the item. After reviewing all the paperwork, the inspection begins with a physical examination under high magnification. This allows the appraiser to see the piece’s surface and condition. High magnification can often reveal issues such as cracks or damage that may not be visible to the naked eye.
The weight is checked, including the weight of any gemstones and the metal. Hallmarks are checked to determine the metal’s purity and age. Rare assay marks, such as silver and gold pieces bearing a Chester assay mark, may enhance the piece’s overall value.
The gemstones are graded and measured. Diamonds are checked for the four Cs (colour, clarity, cut, and carat), while other precious gems such as emeralds, rubies, and sapphires are examined for colour depth, inclusions or flaws, and overall condition.
The metal making up the body or shank of the item is put through non-destructive testing methods, such as XRF analysis, using specialist equipment to check its purity corresponds with the hallmark indications (such as 18K for 18-carat gold).
Once all processes are complete, the item is photographed from every angle. These photos can then be added to the final report and can be invaluable if an item is lost or stolen. Photos enable faster, more accurate identification and proof of ownership if the item is found or recovered.
The final report will include:
• A detailed description of the item
• Photographs
• Gemstone verification regarding quality, size, weight, and any defining features such as the cut
• Metallurgy report
• Valuation figure and purpose (such as for insurance, probate, or resale)
• The methodology used to reach the jewellery appraisal
• The valuer’s signature and credentials.
How much does a jewellery appraisal cost?
Jewellery appraisal costs in the UK will vary. It depends on who is doing the valuation, how they structure their fees, and how complicated the process is. It will also depend on the item being appraised. In general, UK jewellery valuations are based on a system of fixed fees, rather than the value of the item being appraised. Your appraiser will provide a full breakdown of their fees at the start of the process.
How long does a jewellery appraisal take?
This will depend on whether the item needs to be sent away for specialist testing. A simple gold band may take around 20-30 minutes, whereas an item that requires a more in-depth examination using highly specialised equipment could take a week or more. In general, getting jewellery appraised is a relatively quick process.
Does a jewellery appraisal ever expire?
It doesn’t technically ‘expire’, but may become out of date, especially if market trends for precious metals and gemstones shift dramatically. Insurance providers may require you to have a piece re-appraised every three to five years, while valuations for selling a piece and for probate purposes need to be as current as possible.
TH March – your specialist jewellery insurance professionals
For over 130 years, TH March has been providing clients with specialist insurance on high-value jewellery. We understand that, while the sentimental value of a piece can never be truly covered by an insurance policy, its monetary value can. In the event of loss, theft, or damage, jewellery insurance can help to cover the costs of replacement or repairs. You can find out more by browsing our Jewellery Insurance page, or contact us directly to speak with one of our team members today.