Inflated appraisal values for e-rings: why?

[sirbenson]

I'm wondering about appraisal values. I did a search and got 99 results that didn't quite answer my questions.

Its seems that some people I know have had their engagement rings appraised for more than what the e-ring was purchased for. Even 75% more. Or 2x more. Why do appraisers do that? Does the inflated value account for inflation? And that if the ring had to be re-purchased in the future that it would cost more for the same thing?

My ring was appriased by Harry Winston in Toronto and the value of the appraisal is very close to what we paid for the e-ring. If I insure the ring, and (knock on wood) I need to make an insurance claim in lets say 10 years I won't be able to buy in 10 years what was purchased a year ago for the same price. So I would end up getting to spend what we spent on the original ring but would only be able to buy a smaller, lesser quality stone for that money in the future.

I can see that if the appraisal is near purchase price, then the jewllery owner needn't pay inflated insurance premiums if they decide to insure the ring.

But if the appraisal is for quite more than the ring was purchased for, if the ring is ever lost, the insurance policy holder gets to buy a new ring that could be double the cost of the original ring. So am I at a disadvantage in the future if I need to replace my ring since my appraisal is very close to the purchase price of the ring?

Thanks.

 

[that_someone_special]

It's a good idea to get a new appraisal every few years for that exact reason.

 

[diamondringlover]

I dont know why they inflate the price, mine was insured for about $1200 more then I paid for it, since that is the appraisal that I was given when I bought it...I know with my policy my insured value goes up every year, they factor in inflation, of course the amount I have to pay goes up as well.

 

[JewelFreak]

From what people have written here, insurance often doesn't pay the appraised value anyhow, instead an amount that will buy a "similar stone," as in, any old thing of similar size & weight -- unless you maybe have a lab cert. Distressing.

Sometimes jewelers who sell a piece will give an inflated appraisal to justify having charged too much in the first place. "Guaranteed to appraise for twice the price! We'll provide it in writing!" I have a friend, now divorced, who wants to re-set her engagement marquise in a totally new ring. She doesn't know how much her ex paid for it before they were married 25 yrs ago but it's insured for $8000. She considered selling it & took it to a leading jeweler here -- gulp, he offered $250! Something's fishy.

Jewelry & gems are like a lot of areas -- skulduggery & simple incompetence abound. An honest, skilled person is a gem to be treasured! Thank heaven they're out there.

--- Laurie