A few months ago I purchased a diamond online from James Allen. The ring itself was purchased locally from a brick and mortar store. He had agreed to do the diamond mounting and also wrote me up an appraisal. The appraisal is an accurate description of the ring including the producer and model number as well as a description of the diamonds on it and the description of the diamond itself was accurate and includes the AGS report number.
Where my question/problem lies is that the estimated replacement value is far lower than what I know it actually would be. The stone alone was approximately $7200 (after a 600 dollar discount) and the ring itself around $2900. All said the combined total is around $10,000. The appraisal came in at $8500.
After reading a few articles online I reached the simple conclusion that a jeweler is probably not likely to give an accurate value of a stone that was not purchased from that store. While the description was correct they likely want me to think I've overpaid. On the flip side had I purchased the stone from him its likely that the estimated value would have been as much as I had paid if not more since he's trying to "brag" up the value. My point - I realize an accurate appraisal probably does not come from a jeweler.
So, after that long winded introduction my simple question is this. Does the value on the appraisal matter? The sheet that comes with it says what is important is the description. I do actually tend to believe this because if something were to happen say ten years down the road there's no way that the estimated replacement value could ever be accurate, rather they'd have to look at comparable stones and rings. I just want to verify though because I don't want to get ripped off on an insurance claim should one ever be necessary (hopefully it's a moot point). If I try and sell the diamond I could see where an appraisal of value would come in handy but if I'm not doing that will it really matter what it says?
Anyway, any help with this would be appreciated.
Thank you,
Justin
Where my question/problem lies is that the estimated replacement value is far lower than what I know it actually would be. The stone alone was approximately $7200 (after a 600 dollar discount) and the ring itself around $2900. All said the combined total is around $10,000. The appraisal came in at $8500.
After reading a few articles online I reached the simple conclusion that a jeweler is probably not likely to give an accurate value of a stone that was not purchased from that store. While the description was correct they likely want me to think I've overpaid. On the flip side had I purchased the stone from him its likely that the estimated value would have been as much as I had paid if not more since he's trying to "brag" up the value. My point - I realize an accurate appraisal probably does not come from a jeweler.
So, after that long winded introduction my simple question is this. Does the value on the appraisal matter? The sheet that comes with it says what is important is the description. I do actually tend to believe this because if something were to happen say ten years down the road there's no way that the estimated replacement value could ever be accurate, rather they'd have to look at comparable stones and rings. I just want to verify though because I don't want to get ripped off on an insurance claim should one ever be necessary (hopefully it's a moot point). If I try and sell the diamond I could see where an appraisal of value would come in handy but if I'm not doing that will it really matter what it says?
Anyway, any help with this would be appreciated.
Thank you,
Justin
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