Whether you have a bracelet or ring passed down to you through the family or you received a beautiful new piece of jewelry you feel is valuable enough to be insured, having the pieces professionally appraised is smart. Unfortunately, most people do not understand how the appraisal process works or what factors influence the value of their jewelry. By learning the truth behind a few common myths, you will understand jewelry appraisal in more detail.
Appraised Value Should Always Be Higher Than Purchase Price
Many people are surprised when they bring a piece of jewelry in to be appraised. They may believe the jewelry is worth much more than what they paid for it. Even though a higher appraised value is ideal, you probably paid more for the jewelry than it is actually worth.
It is important to remember a jewelry or even discount store will not sell you a piece of jewelry lower than it is worth because most retailers want and need to make a profit. Therefore, do not be alarmed if the appraised value is less than how much you purchased the piece for.
Appraisals Are Only Necessary for Insurance Purposes
There are many reasons for investing in a professional appraisal of your jewelry piece. While most insurance companies require one, a professional appraisal is beneficial for other reasons, too.
Knowing how much your jewelry is worth will ensure you care and store for it properly, since you will want to maintain its beauty and value for many years to come.
A professional appraisal will also be helpful in cases where you are divorcing and dividing assets/property. Or, if you are selling the jewelry and want to prove its value to potential buyers.
Diamonds Are the Most Valuable Part of a Jewelry Pieces
Finally, most people believe diamonds are the one and only thing that brings value to a piece of jewelry. While shocking to learn, diamonds are not nearly as valuable as the actual metal of your jewelry piece, especially if the diamonds are less than perfect quality.
On average, gold sells for $1700 per troy ounce. Even if the market is flooded with gold, the value of this metal will not drop. Diamonds, on the other hand, may be valuable, but their value will drop quickly in certain market conditions.
No matter if your jewelry piece of flooded with diamonds or not, the gold will still be the most valuable.
For more information, reach out to jewelry appraisal services near you.
