How much more do ACA's generally appraise for?

[tdoyledesign]

With all the high quality diamonds for extremely competitive pricing on PS, I got to wondering how much more they generally appraise for. This HoF ring I originally liked (while EXTREMELY overpriced) costs $22,500 with a 1 carat center and platinum setting.

http://www.heartsonfire.com/shop-jewelry/rings/engagement-rings/beloveddiamondsolitaire.aspx

These HoF diamonds are generally G/H stones with SI1 clarity. For roughly $15k I can get a custom setting very similar with a 1.3 C center G VS2. I keep hearing that ACA, Infinity, BGD, GOG, etc. are just as nice as HoF so I have to assume they would appraise for a lot more than they charge. Does anyone know the answer to this? Thanks!

 

[Gypsy]

Well let's think about this.

You are buying a stone from a retail vendor at a retail price. So... it's retail replacement value is exactly what you paid.

Inflated appraisals are like feel good infalted pricing at a car dealer ship. They want you to feel like you got a deal so they raise the sticker price and tell you it's a 20k car, so that when you negotiate it down to 17k you have bragging rights. But if you do your research you will understand that you bought a 17k car for 17k. Inflated appraisals just make your insurance premiums soar, that's all they are good for. You insurance company knows exactly what the value of what you bought it, and since most insurance policies are replacement not cash out, they will pay only what they have to do get you like quality. The key is an appraisal that defines to a
*t* what 'like quality' is so that you get something as good.

Hearts of Fire is a brand name and it sells for a premium, just like Tiffany. The base item, in terms of actual diamonds and metal weight has very little to with the actual pricing.

 

[tdoyledesign]

Thanks. This makes sense. So is it safe to assume a HoF or Tiffany piece will appraise for more since they cost more to replace for a comparable piece?

 

[bem3231]

Thanks. This makes sense. So is it safe to assume a HoF or Tiffany piece will appraise for more since they cost more to replace for a comparable piece?

I think that's where being absolutely certain what your insurer considers 'like goods' is key. They may or may not take into account the premium that you may have paid for a brand name, as far as I understand it. Even if you pay a premium for, say, an E VS2 Tiffany diamond, your insurer may consider 'like goods' to be another E VS2 without the branding. Best to check upfront I would think.

 

[denverappraiser]

This is an absolutely critical concept. The insurance company is generally agreeing to replace a lost item with another of ‘like kind and quality’ or words to this effect. This is NOT just a gemological question. Genuine Tiffany things cost more than similar things from most other places. That’s not an endorsement of Tiffany or a disparagement of their competitors, it’s just the facts. They cost you more to buy and they will cost more for them to replace. You bought a genuine Tif and you would not be made whole by a replacement with a knockoff. This happens with nearly all branded items, including HoF and ACA. The insurer is welcome to call up the manufacturer at replacement time and try to work out a cheaper deal (and they will), and the jeweler may even give it to them because they’re a huge client. That’s smart business for both of them but this doesn’t affect your product or even you as a client. The usual appraisal definition of value is based on what it would cost to replace at retail, new, and in the most appropriate market. In the case of an item like an HoF, that means buying genuine HoF or ACA goods from an HoF or ACA dealer if available.

In answer to your question of how much ‘more’ ACA’s will appraise for than their competition, it’s going to depend on the methodology of the appraiser and the definition of value being used. How much they cost is usually a pretty easy question. They’re less than some, they’re more than others but they’re more transparent about their prices than nearly all. It's a few clicks away. All you need to do is look.

 

[diamondseeker2006]

Replacement value today is what you paid for the stone today. That is what you need to insure for. If you buy a second hand Tiffany ring or ACA, then you do need an appraisal that will state the current retail price of your ring or diamond. As Gypsy said, inflated appraisals are meaningless and cost you more in insurance premiums than you should be paying. I always insure new items for exactly what I paid, because that is the amount it would cost to replace the item. Then if diamond prices rise, you can reappraise to the new retail every few years (as needed).