An appraisal is a statement of the value of a piece of Jewelry. The appraiser will look at the piece and make an assessment of its condition. They will look at the quality of any gemstones, and their settings and come up with a value.
This is done most often for insurance purposes, and so often the appraiser will use appraisal management software which allows you to access the details of jewelry anywhere.
Appraisers are professionals
Not surprisingly in such a high-risk business, it is important to use an appraiser who has undergone training in gemology and valuation. In the USA the American Society of Appraisers (ASA) is the place to start when you’re looking for a professional.
ASA appraisers go through an extensive education program and have the benefits of an internationally recognized entity.
The appraised value versus the resale value
To the non-professional, sure the appraised value and the resale value are the same thing. It turns out it’s not the case. As said above, the appraised value is for insurance purposes and the insurance companies can levy a higher premium for a higher price. They also win when the replacement actually costs less than the insured value. Why do we hate insurance companies?
It is also a good sales tactic in the jewelry business too. If you’re paying half the price for a piece of jewelry you think you’re getting a great deal.
The resale or replacement value
This is really the price of the piece. This is how much you will need to pay to get it in the first place, or what you can expect to sell it on at.
The key element is to remember it’s the resale value shows the power of your investment.