You've probably heard about jewelry appraisals but may not really understand the benefit of such a service. If you have any kind of jewelry collection, even if it's only one or two high-value pieces, you should understand the importance of appraisal. Especially for jewelry owners who have never had an appraisal conducted, there are some things that you need to know.
When Does An Appraisal Matter?
There are a few key times when you should seek an appraisal of your jewelry. Familiarizing yourself with those instances can help ensure that you have the documentation you need to protect your investment.
When you are considering a purchase, having an appraisal done is a good idea. This helps you to compare the value of the piece to the asking price so that you can be sure that you are paying a reasonable cost. The appraisal also ensures that you are getting what you're paying for.
If you acquire a new piece, an appraisal is beneficial for recording not only ownership but also value. Since you'll want to insure the piece, you should always have documentation of the appraised value. Your insurance company will need to see documentation like this for reimbursement in the event of a loss.
When Is One Appraisal Not Enough?
If you have an appraisal done when you acquire a piece, does that mean your appraisal obligation is met? The truth is that there are times when you may need to have more than one appraisal completed on a specific piece.
For example, if you change something about the piece, such as altering the setting of a stone or adding a component, you'll need a new appraisal to document those changes. In addition, if the market changes dramatically, you may need to have a new appraisal done to record the current market value of the piece.
Not only that, but you may want to commission a new appraisal if you've received new information about the piece. Sometimes, receiving information about the history of the piece and its authenticity may actually affect the overall value. Pieces with provenance from royalty or other notable families, for example, will have an increased appraisal value.
These are just a few of the things that every jewelry investor should understand about appraisals. Talk with a local jewelry appraiser today to see if you should schedule an appraisal for any of the pieces in your collection.