Newbie question on getting ERing appraised

[mapz]

I just purchased a diamond and setting from a very reputable pricescope vendor (one of the most recommended on this board) and it should be ready in a couple weeks.

This vendor offers free appraisal himself. My question is, once I take possession of the ring, does it make sense to get an independent appraisal? It seems like it might be a conflict of interest for the diamond/setting supplier to appraise their own work?

Another question: It seems that rings are appraised for a lot more $$ than the purchase price. I feel like I'd rather have the appraisal value be closer to what I actually paid to bring the overall cost to insure it down?

Thanks!

 

[liaerfbv]

It depends on what your insurance company requires. Some only need a copy of the receipt of what you paid to insure the ring. In case that, I wouldn't bother to pay for a separate appraisal. If your company does require an appraisal, it's best practice to get a 3rd party independent appraisal... but if you're working with a reputable company and all you need is an appraisal I'd probably just get the jeweler's appraisal report. I know it's not great advice but it's honestly what I would do. And yes, most appraisals are crazy inflated which is terrible because it jacks up your premium. If you do get an appraisal, either with your jeweler or an indpt. appraiser, make sure you tell them you want the replacement value because that's all your insurance company cares about.

 

[Diamond_Hawk]

Mapz,

Many buyers go by the adage “trust but verify.” There is nothing wrong with hiring a third-party independent expert (one who does not sell gems or jewelry) to verify your purchase is as-advertised; in terms of Cs for the diamonds and details for the setting. This should also cost relatively little.

Be sure to choose a specialist who is capable of assessing/confirming all of the Cs, including cut. If the appraiser does not have ideal-scope or ASET, is unfamiliar with light performance assessment done this way, and has no way to measure proportions (by hand) and in order to correlate to cut-charts you’ll only have a by-eye judgment.

This by-eye judgment may mean something,but it’s a bit like looking at horses in a stall and guessing which will win a race. As strange as it sounds, there are many diamond and jewelry appraisers who are unequipped to make cut-analysis of the kind even the most basic Pricescope regular is accustomed-to.

About appraisal values: “Valuation” is a snapshot of X item in Y market at Z time. The same diamond, sold in a ski shop in Aspen may go for less if bought through an online seller. The best advice is to be sure your purchase-price would be enough to replace the item now. Talk to the appraiser you use and work this out.

For that matter, you can use your sales-invoice with the insurer and ask to add 10% or so to cover inflation – then revisit it every few years.

 

[mapz]

Great replies, thanks. For an independent appraiser to fully look at the center stone, wouldn't they need to take it off the setting? This will be a halo ring...is it possible to do that to get the ASET images, etc?

 

[heididdl]

Great replies, thanks. For an independent appraiser to fully look at the center stone, wouldn't they need to take it off the setting? This will be a halo ring...is it possible to do that to get the ASET images, etc?

In my HO if you are happy and trust the jeweler who is making your ring and you have the ceritifcate from GIA or AGS and you have a discussion with them that you want the appraisal for the replacement value, and not an exagerated amount ...Why would you want to spend more money on someone else to appraise.

The stone is what it is as certificate shows....The appraisal is for insurance replacement only so let it go......What would you gain by showing it to another appraiser. If you gave it to five appraisers you'd have five opinions and then you'll go crazy.

The paper is for insurance.. If you are happy with your jeweler and you have the stone certificate the setting is really just the price of gold/diamonds and labor. Which is all subjective. If you were to resell the setting you will get no where near what you are paying for it now.

Just seems redundant

 

[Modified Brilliant]

In reality, the crazy inflated values are in most cases not being generated by the professional appraisers but by the sellers themselves. At least that's what we see. Thankfully, most vendors here on PS do not suffer from this malady (crazy inflated values).

On another side note, our company invested thousands of dollars on light performance and other high tech equipment only to realize that the consumers who really cared about this were dealing with vendors who ALSO really cared about this...AND furnished the buyer with pages of reports on just about everything. We made a decision 6 months ago to sell off that equipment due to infrequent use and very low consumer demand. That was an awakening.

Also, after a diamond is set, an appraiser is at a disadvantage to determine light performance and other technical specs. It's a lot easier with a loose diamond, but in our real appraisal world, 90% of what we appraise is mounted not loose.

So, to answer the original post, if you are satisfied with the documentation and all that goes with it, and you trust the vendor and their reputation, and you are comfortable with the valuation, then you might not need an independent appraisal. However, if it were me and my hard earned money, I would trust but verify. It's worth an hour of your time. We just saw a major mix-up occur with a client that represented thousands of dollars. Yes, it does happen... thankfully not very often.