Do I Need an Independent Appraisal?

[ML2014]

I have a few threads here on a 3 stone ring that I am purchasing from a reputable local jeweler who I have have patronized over the years, although this is by far the biggest purchase I''ve made from them.

I selected the stones and the setting and just gave them the OK to go ahead and make the ring.

Should I obtain an independent appraisal on the stones before they are set? The center stone has a GIA cert. I know he will give me documentation for insurance purposes- will that be enough if I trust him?

Also, where would I get such an appraisal?

Appreciate your help.

 

[denverappraiser]

Whether or not you need a 3rd party appraisal depends on what you want to know, what the jeweler provides you with in the first place and what your plans are regarding insurance. It sounds like you’re not looking for additional information as part of your shopping process so really the question will be what you need for documentation in the case of a loss.

If you’re planning to self-insure, or to insure using a cash type policy that doesn’t require documentation (like Chubb for under $50k declared value), you aren’t required to submit anything at all although you may want to get it done anyway simply because it makes the replacement process so much easier. If you’re going with a replacement type policy (most others), you should seriously consider it unless the jeweler provides one that contains photos, full descriptions, scans of the GIA, etc. The test is fairly simple. Read through the report they give you titled ‘appraisal’ and look for the section that describes the item. Read it carefully and ask this question: If my insurer replaces my lost ring with the cheapest one they can find that meets this description, will I be satisfied with the results? If the answer to this is no, get an independent appraisal.

The other big reason that people insure new purchases is if they are looking for a second set of eyes and an informed opinion to support or refute what the jeweler has and hasn’t told them. This includes things like quality control of the craftsmanship, diamond details beyond what’s included on the lab report and the like. The need for this depends largely on your relationship with the jeweler and, perhaps, your budget. Purchasers of very expensive things (over say $100,000) almost always do it because the cost of expert services is very low as a percentage of the cost of something going wrong while inexpensive things (say under $100) almost never do for the same reason. A $100 appraisal on a $50 items rarely makes sense. Where this line belongs depends on you, your trust in the jeweler and your general attitude about money and risk.

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

 

[ML2014]

Thanks Neil- just read this.

While my jeweler always provides a thorough description with pictures, and a GIA cert will accompany the documentation I receive when I pick up the ring, I need to do some homework over the weekend and check out how my other pieces are currently insured. Then I''ll decide what to do.

Thanks for the advice.