Question about appraising

[pdzwilewsk]

When you get a diamond appraised is the replacement value supposed to be exactly the price you paid for it or should the appraiser come back with a higher number than what you paid for it. I guess this question is somewhat silly, since it is essentially a predictor of how great a deal I got on the diamond.

THe other question is about values of platinum settings and band?
What is a reasonable value for this?
I am getting a custom made knife edge tiffany band.

The reason I ask is that the appraisal value for just the diamond is about $1200 less than what I paid for the combination of the diamond, ring, and setting. Can these platinum rings cost $1200. There is nothing fancy on it, just a knife edge and a solitairy stone.

Should I worry if the appraisal value is 100 to 500 less than what I paid?

 

[denverappraiser]

By all means talk to your appraiser and ask specific questions about your concerns. This is what you’re paying them for.

Insurance replacement values are rarely a good predictor of whether you got a ‘great deal’ or not but they are often used for this purpose, usually by sellers who would like to point at them as a selling tool. The replacement value should provide sufficient funding to eanble your insurer replace the item with another new one of ‘like kind and quality’ in the defined marketplace and in a reasonable amount of time. ‘Like kind and quality’ is the description found in the appraisal and the defined marketplace should appear in the text of the appraisal. For designer type pieces this will usually be directly from the designer or from their sales agent (which is probably the store where you got it) and for more mainstream kinds of items this will be a hypothetical local jewelry store and it may or may not be more expensive than where you shopped. Again, read the text of the appraisal and then ask the appraiser about what you don’t understand.

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