Why have an appraisal?
There are many reasons why a jewelry appraisal or gem identification is necessary:
- Replacement Value
- Quality Confirmation
- Estate Tax Evaluation
- Division of Property
- Damage Reporting
- Collateral Purposes
Types of Appraisals:
Replacement Value: Most commonly referred to as an insurance appraisal, this report is necessary for insuring your items against loss or damage. The accuracy and detail included in this report makes it possible to identify or have exact duplicates recreated of these precious items should they ever be lost or stolen.
Estate (probate): This report is for estate evaluation purposes and is necessary to determine inheritance taxes on an estate. Jewelry values for estates are legislated to include specific information and data. Fair market value is used for this type of valuation and it is always necessary to include comparable sales.
Divorce Settlement/Dissolution: This is a fair market value report for an equal division of common property.
Damage Report: This report expresses the difference in value resulting from breakage and estimates the cost of the removal, re-cutting and resetting of the gemstone, as well as the value of the re-cut gemstone (loss of weight).
Donation: These reports are based on fair market value and are necessary for tax deductions of donated items.
Liquidation: Appraisal value is determined when an owner decides to convert jewelry items into immediate cash. The sale can be held under forced or limiting conditions and with time constraints, such as under court order or bankruptcy.
Comparison: This report is for a client who brings in a jewelry or gemstone item to verify its identity and/or quality as claimed by the seller. Comparison appraisals usually reflect the item at its most common retail replacement value.