Appraisal

[bobina]

Hi Everyone,

I''m new to pricescope, but want to thank everyone for the wonderful forum. It has proved to be very informative.

My fiance let me pick out a loose diamond and setting for our engagement as a friend of mine owns a jewellery store, and I got everything at cost.

We bought a loose diamond - EGL certified oval 1.04 carat, SI3 diamond which I was quite satisfied with until we had the diamond set in the ER we purchased and sent it off for an appraisal for insurance.

We didn''t send the EGL cert with the rings, and the appraisal came back saying it was an I1 stone. Correct me if I''m wrong, but isn''t that a big difference? Doesn''t an I stone have inclusions visible to the naked eye, but with an SI stone, it is included but not visible to the naked eye?

I am still happy with the diamond and I love the ring, but I am afraid that if it ever got lost I wouldn''t get the same quality from an insurance replacement.

Should I get another appraisal and include the EGL cert?

Thanks

 

[denverappraiser]

Talk to your appraiser about it. By all means show them the document from EGL as part of the conversation.

This is why it’s so important to have a conversation about your objectives FIRST, before they begin the appraisal assignment. There are two very different objectives that often are at play for new purchase type appraisals. First is concern over whether you got what you thought you got and whether you paid a reasonable price for it. This is largely a grading and market comparison question and it seems like the one that was answered here. You got an I-1. This can be very useful if you are planning on using the information as part of the shopping process and you are deciding whether to buy this one or a different one.

The second objective is as part of your insurance contract. Your insurance company is agreeing to replace the stone with another of ‘like kind and quality’ in the case of a loss. So what is ‘like kind and quality’? In this case, it would include a document issued by EGL calling it SI3. You sought that out, you paid extra for it and it would be unfair to deny you of it in your replacement. The fact that GIA would call it an I-1 is largely irrelevant (although usually correct). It’s a branding thing. The appraisal is in effect the purchase order for the replacement and that purchase order should specify EGL-SI3 as one of the specs.

It’s worth noting that EGL does not use the same grading scale as GIA. What you bought was EGL and it’s reasonable to expect the insurer to replace it with an EGL stone or one from a comparable lab using similar grading standards in the case of a loss.

This issue generally does not affect the price or the value conclusion by all that much. The stone is what it is and the market tends to price things based on that, as will the market for it's replacement should it ever be necessary.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[jstarfireb]

Some SI (even SI1) stones have inclusions visible to the naked eye. The grading of SI versus I is done under magnification, so it doesn''t necessarily correlate to what the naked eye can see. If you still can''t see the inclusions (or can hide a big one under a prong) and you love the stone, keep it! However, some types of inclusions that are big enough to cause an I1 grade can have an effect on the durability of the stone. Hopefully some others can weigh in on this, because my knowledge stops here.

EGL (especially the Israel and Europe branches, less so the USA branch) is known to be less stringent with their grading standards than GIA or AGS, so I''m not surprised it came back with a lower clarity. So I don''t think you need another appraisal. Was the color accurate?

 

[bobina]

Hi,
Yes the colour came back as F-G rather than the G on my orginal certificate. I am concerned also, that this appraisal says nothing about the diamond being a Canadian diamond. The only mention of it being a Canadian diamond is in the picture showing the "girdle laser inscription". There it shows a maple leaf followed by the inscibed number.

Should I try to get them to include a better description? Or is the maple leaf emblem good enough in the event that it has to be replaced through insurance.

One more question for now. I read on here that some people use Chubb Insurance. When I called my insurance broker to have my ring insured they assured me that I only need add it to my home owners policy (I have ING). Do any of you have an opinion of what is better?

Thanks Again,
Tina