Need Advice on Appraisal-Please Help.

[Iluvri]

I am new to the whole diamond world. Please help me clear my doubt. My boyfriend gifted me a 0.53 carat diamond, E color, VS1 clarity and very good cut, in a 18K gold band from Blue Nile for my birthday. It cost him $1500 and the appraisal from Blue Nile is around $2300. My question is do I need to go to an independent appraiser to get it appraised again? I have read some the forums in Price Scope and everyone seems to get their rings appraised again. Can''t I trust the diamond and band quality from Blue Nile? Also, for insurance purposes can''t I use the appraisal document provided by Blue Nile? Do help me. Thanks in advance.

 

[denverappraiser]

Most insurers are happy to accept either the receipt or an appraisal for a new purchase item. The reason for the difference in value is that they are attempting to estimate what it would cost to replace the piece in a ‘regular’ jewelry store, whatever that is. This is a fundamentally flawed task since they’re trying to estimate what their competitors would charge and then use it as evidence that you got a bargain but it’s a pretty common strategy and it’s correct that they are less expensive than many other stores. It may or may not be in your best interest to use it for insurance purposes. Although your insurer will surely accept it, what happens in the case of a loss may not be what you’re expecting. In general, the insurer is agreeing to replace the piece with another of ‘like kind and quality’. They employ skilled professional shoppers who will go into the marketplace and look for one. If your beau could find it at BN for $1500, chances are pretty good that they can and will do the same when they replace it. Since your premiums are a direct percentage of the declared value, and their behavior in the case of a loss is based on what it will cost them to replace, it’s doing no favors to pay for extra insurance.

That said, you probably don’t need a new appraisal in your situation. If you trust the jeweler who sold it to you to both provide what they said and to do a quality job on the piece without further inspection, your insurer will be just as happy with the purchase receipt and you’ll be paying 2/3 of the premiums for exactly the same coverage. In a few years you’ll need to update it to reflect changes in the marketplace and you’ll need an appraisal at that time. For now, just send in the receipt and a photo of the piece and you should be good to go.

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

 

[Iluvri]

Thank you so much Neil for addressing most of my concerns. But I am still struggling with a question i.e., How do I know if Blue Nile gives me the right diamond and band to me?
For example, in my case I have a 1/2 carat, E color, VS1 clarity, very good cut diamond ring from them, will they cheat by shipping the cert. that matches my requirement but a ring and diamond with lower quality ?

Also, will they replace a real diamond with cubic zirconia when shipping to customers ? Just that this is the first time we got such an expensive priced item online. Thanks again in advance.

 

[denverappraiser]

If you are concerned that what you received might have been misrepresented, an ‘appraisal’ written by the same people that you’re second guessing does nothing. Hire an independent expert to look at it and give you their evaluation. This is not the same as the insurance question.

Blue Nile is a legitimate outfit and they will not deliberately cheat you. It's not a CZ. Concerns with them (and any legitimate jeweler) have to do with mounting craftsmanship, possibly information on the diamond(s) not contained on the grading report, and possibly errors from the shipping or manufacturing processes. The person who wrote that 'appraisal', probably did so without the benefit of even looking at the piece so obviously they couldn't pick up on anything even if they were inclined to do so.

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

 

[Iluvri]

Thanks again Neil. Thanks for the help.