GemScan appraisal too good to be true?

[Rockford]

Hey all,
Just had a SuperbCert appraised by GemScan and they came back with a price that was more than twice what I paid.
Needless to say I was very (happily) surprised. I was expecting it to be valued somewhat more than what I paid but not twice what I paid. Is this typical or should I be wary? From what I've heard GemScan (Toronto) is supposed to be very good so...

 

[Architect]

Generally for well cut stones, appraisals will be about double so that is pretty normal. I don't know why appraisals on diamonds are like this, but every appraisal I have seen or heard of was at least 1 1/2 times the value of what the person paid for the diamond. It is to our advantage though since getting it insured gives us a nice return if the diamond should ever be lost or stolen.

 

[2carrots]

On the flipside, you have to pay high insurance premiums.

 

[Rockford]

So if this is the norm I have to go and ask the obvious, but what's the use in getting an appraisal if it's always going to be innaccurrate? What's it really telling you? If it's "replacement value" is pegged at $10,000 but I can really get it replaced for $5,000 what's the use?
By the same token say some schumck unknowingly gets taken on a stone and has it appraised. The appraisal might could very well come back at or near what he paid right? The guy would be pleased right? When in fact, if what I'm hearing here is true, he would have been screwed and never know it. That's scary.
What does one have to do to become an accredited apprasier anyways? If they end up being that far off routinely I wonder if they really do anything at all.
Is there some underlying reasoning or logic that I'm missing?

 

[Architect]

Appraisals are done so that you will get a fair return and be able to get the same quality stone if yours is lost or replaced. If you buy a diamond for $5,000 and it is appraised for $10,000 and it gets stolen in 10 or 20 years, the price for an equal stone by that time could be $10,000 or more. Appraisals factor in inflation and they are supposed to be for the life of the stone, not just for that partiular year. How many people do you know get their stones appraised once a year? Most do it once for insurance purposes and that is enough.

 

[Mara]

We were actually advised from a few jewelers to get a new appraisal every few from our original appraiser (at a discount or included) due to inflation and fluctuating market prices (e.g. increase of purchases on the internet driving prices down etc).

Also I have heard that sometimes insurance co's don't always give you the entire amount of the appraisal, sometimes its 75% or similar depending on what type of policy and fine print you have. So an inflated appraisal could ensure that at least you are mostly covered. Though checking your policy very carefully or going with a jeweler insurance co might be the better way.