Can This Be Right?

[robyn]

Well - I decided not to sell the diamonds. And today I got back the appraisal. And frankly I was shocked. The "replacement value" appraisal for one stone was $39,000! It is an emerald cut stone 7.91x6.80x4.45 mm - 2.25 carats. VVS2 in clairity and E-F in color. According to the appraisal - there are 2 very very small white inclusions in the pavilion. The stone also has a "chip on the girdle running into the pavilion under one prong" - and "several wear chips on the girdle".

I realize this isn''t a fancy appraisal (it''s from a local jeweler) - and the main purpose of getting the appraisals was to equalize shares in an estate (so if all the prices are too high - or too low - it kind of evens out). But I am just curious. Is this anywhere in the ballpark of what one would have to pay retail for a stone like this? Robyn

 

[orbaya]

Go to "Pricescope your diamond" at the top of this page, enter in the stats and it will pull up diamonds and what online vendors sell them for. The closest in size I found was a 2.32 E VVS2 for $28,591.

A few 2.26ct F VVS2 go for a little over $24,000

 

[XChick03]

My ring apprasied at 2x what I paid, and its my understanding that appraisals are usually higher than what you actually spent.

 

[robyn]

So the main purpose of the "insurance appraisal" is to give you a lot of wiggle room with your insurance company when you''re haggling about getting a claim paid? Guess that kind of makes sense . I have jewelry - but have never bothered to insure any of it. If there is any reason I don''t feel comfortable wearing it - I don''t wear it (like when I had a gold Rolex in Miami and everyone kept getting robbed in their driveways by the "Rolex bandit" - my Rolex wound up living in my safe deposit box). I worry more about getting hit over the head than losing jewelry. So I just try to use common sense about where I wear things. Robyn

 

[Modified Brilliant]

Date: 2/23/2006 2:47:24 PM
Author:robyn
Well - I decided not to sell the diamonds. And today I got back the appraisal. And frankly I was shocked. The ''replacement value'' appraisal for one stone was $39,000! It is an emerald cut stone 7.91x6.80x4.45 mm - 2.25 carats. VVS2 in clairity and E-F in color. According to the appraisal - there are 2 very very small white inclusions in the pavilion. The stone also has a ''chip on the girdle running into the pavilion under one prong'' - and ''several wear chips on the girdle''.

I realize this isn''t a fancy appraisal (it''s from a local jeweler) - and the main purpose of getting the appraisals was to equalize shares in an estate (so if all the prices are too high - or too low - it kind of evens out). But I am just curious. Is this anywhere in the ballpark of what one would have to pay retail for a stone like this? Robyn

Hi Robyn,
Did you specify what type of appraisal you were looking for? Retail replacement value for insurance purposes will always be higher than an estate value.
Is "replacement value" what you were looking for? Just making sure that you received the correct value to suit your purposes.

www.metrojewelryappraisers.com

 

[valeria101]

Date: 2/23/2006 2:47:24 PM
Author:robyn

VVS2 in clarity [...] According to the appraisal - there are 2 very very small white inclusions in the pavilion. The stone also has a ''chip on the girdle running into the pavilion under one prong'' - and ''several wear chips on the girdle''.

I am most likely wrong, but the description of inclusions does not quite sound like VVS... Maybe the two very small white inclusions really are pinpoint-sized, but those alone would be enough to make the stone VVS2. So where did the chips go in the appraisal? It is not uncommon for diamonds'' clarity to go down with wear, as they acquire chips.

Probably I am just talking gibberish. If anything, I would ask the appraiser the very same nonsense, without blushing.

 

[Richard Sherwood]

Date: 2/23/2006 6:32:00 PM
Author: valeria101

Date: 2/23/2006 2:47:24 PM

Author:robyn

VVS2 in clarity [...] According to the appraisal - there are 2 very very small white inclusions in the pavilion. The stone also has a ''chip on the girdle running into the pavilion under one prong'' - and ''several wear chips on the girdle''.

I am most likely wrong, but the description of inclusions does not quite sound like VVS... Maybe the two very small white inclusions really are pinpoint-sized, but those alone would be enough to make the stone VVS2. So where did the chips go in the appraisal? It is not uncommon for diamonds'' clarity to go down with wear, as they acquire chips.

Probably I am just talking gibberish. If anything, I would ask the appraiser the very same nonsense, without blushing.

I was thinking the same thing Ana. A "chip on the girdle running into the pavilion under one prong'' - and ''several wear chips on the girdle" doesn''t really sound like it could be a VVS2 clarity.

Did the person doing the appraisal sign his name as a gemologist, Robyn?

 

[robyn]

So many questions. Thanks for your interest.

The appraisal was signed by X - "President [of the jewelry store company]/Gemologist".

The actual appraisal I wanted to get from anyone was what these rings would be worth if I tried to sell them. I guess no one does appraisals like that - at least not anyone I found. This appraisal is titled "Insurance Appraisal". And then I was told that a realistic sales price would be 30-35% of the "appraised value".

When we got the appraisals back - we asked about the chips - and the appraiser said he had taken them into account in the appraisal. I really don''t know enough to ask any question more complicated than that.

My experiences lead me to some interesting questions. I don''t know much about diamonds - but I do know about taxes - estate planning - and the like. Who would want an "insurance appraisal" if you''re trying to close out an estate that''s subject to estate taxes (you want to keep your values low)? How does a personal representative who is charged with distributing shares in an estate value these things when comparing them with more liquid assets like 100 shares of Microsoft? If an heir takes a piece and gets a new tax basis - what''s the basis? I assume a lot of jewelry simply "disappears" before the papers get to the accountant. But there are jewelry pieces and collections that the IRS wouldn''t likely overlook. Robyn

 

[robyn]

By the way - I may wind up with this diamond. It''s in an old fashioned pronged engagement ring setting. I was thinking it would look nicer in a flatter prongless more contemporary setting (also - I don''t want to wear a dead person''s engagement ring). I was trying to find the chip "on the girdle running into the pavilion under one prong" - and couldn''t see it - even with a magnifying glass. Where is this chip? Can you tell from the description whether it would show if the stone were put into a prongless setting? Robyn