There are many reasons for getting an appraisal and the valuation determined by the appraiser is dependant on the purpose. The two types of appraisals I perform the most are Retail Replacement Values and Fair Market Values.

Retail Replacement Value is determined for insurance purposes. This is defined as how much it would cost to replace the item from a retail jeweler with an item of similar make and quality in the event of theft, loss, or damage. My job as an appraiser in this instance is to find similar gemstone materials and a similar or the same mounting (or exactly the same if the piece is custom made or trademarked). With this information, I would then set the selling price for that particular item as determined on the date of the appraisal. The insurance company does not care if the piece is in or out of style, pretty or ugly, but they usually do care if the piece is in good repair.

Fair Market Value is determined for resale, estate settlement, divorce, and property distribution. This is defined as the value of the piece in its "as-is, used and marketable" condition. In Fair Market valuations, the condition can have an additive impact if the piece is in near new shape, or a negative impact if worn, damaged, and in need of repair. In this case, style does affect the marketability of the piece in a positive or negative way.

In more simple terms, a Retail Replacement is the "new value" (with some exceptions) and Fair Market Value is the "used value".

Other types of appraisals include:
Liquidation Value: this type of appraisal is used when there is an urgent need to dispose of the item.
Scrap Value: this type of appraisal is used when the components of the piece are broken down and sold within the market that buys scrap precious metals and used gems.

When getting an appraisal, be sure you know the function you which to use the appraisal for so your appraiser can prepare the appropriate document for you. It's also a good idea to know how to find a qualified appraiser for your jewelry needs. You can read my blog on appraiser selection for more information.

If you have any questions about appraisals, jewelry, gifts, or my services, please feel free to give me a call at (360) 676-0402, send me an email, or stop in. My hours are Tuesday – Thursday, 11:00a.m to 5:00p.m. and by appointment.