Received the Appraisal….all I can say is YIKES !

[RookiefromNY]

Some may know my story. I bought an engagement ring, platinum shank with pavee’ (sp?) diamonds pretty much all around. I bought the diamond loose from a wholesale shop. The total cost was ~15,200. The place that sold me the diamond provides a free appraisal. I got the appraisal back today (it came from a place called Empire Gemological Services) and it states the value of the ring and setting is $32,500 ! I asked a woman who worked there and she said this was normal, and since I had bought the diamond whole sale the $32,500 represents the retail price.

This sounds way too high to me. The price to insure this with a zero deductible is almost $700 a year!

My question is: Should I obtain an independent appraisal and if I do get the appraisal will they say it’s worth much less then $32,500? Should I just grin and bear it so incase something does happen to the ring I will have the $32.5 to fall back on.

Anyone know of a good, honest appraiser in Midtown Manhattan?

Thanks a bunch, and Happy Holidays.

 

[mrsv]

Honestly I am bit confused, no diamond wholesaler sells to the public.


David Wolf can have a look at it for you.
Without having seen any pictures or knowing anything about your ring I would expect it to come back at the value you paid for it, possibly less. The chances of their appraisal being accurate are slim to none.

 

[RookiefromNY]

Thanks for the post

I bought from a company in the diamond district, they sells only to retail shops and bluenile.

General Diamond Specs
Round Brilliant
8.25 X 8.18 X 5.00MM
2.05CT
SI1
I Color
Depth 60.9 %
Table 58%
Cut is considered very good.

 

[karend26]

My understanding is there are two types of appraisals, one for insurance purposes and one that is more accurate to the real value. And that the appraisal for insurance purposes is usually about double the actual worth.

But I am no expert on the subject. Any appraisers out there who can shed some light on this?

 

[sparxs111]

Always get you ring independently appraised. There is definitely a conflict of interest to have it done by the people you purchsed your ring from!!!!!!

 

[gogosi]

I am from Canada so I am not sure if things are different over here but my appraisal came in at more than double what we paid for it and that is pretty typical over here. I don''t know anyone that has paid the apprisal value for their diamond. I think unless you get it from the brand name jewlers... like Birks, Tiffany etc. I''ve never heard of anyone paying appraisal value.

As for insurance the way it works here we''ve been told that usually the insuarnce will give you a diamond that matches the specs not the actuall cash, and based on how things work here that makes sense... Most jewlers here will list price the diamonds at the appraisal value or around there and then when you go to buy they give you 30-50% off to show you how special you are... LOL... again I''m in Toronto and that''s how things are here so not sure how it is in NY. My ring got appraised at $24K and insuarnace was going to be $600 per year so that''s pretty comparable to what you got quoted. We decided not to insure it.

 

[mrsv]

Date: 12/23/2008 2:40:52 PM
Author: RookiefromNY
Thanks for the post


I bought from a company in the diamond district, they sells only to retail shops and bluenile.


General Diamond Specs

Round Brilliant

8.25 X 8.18 X 5.00MM

2.05CT

SI1

I Color

Depth 60.9 %

Table 58%

Cut is considered very good.

Not trying to give you are hard time really, but if they only sell to Blue Nile and retail shops how did you find them, buy from them?
Doing a quick search it seems like you got an ok deal on the stone....though those stones are ideal cuts and all have upgrade/trade in policies. Who provided the grading report? If it did not come with a grading report I would be highly suspicious and see about the return policy ASAP.

 

[RookiefromNY]

Thanks for all the posts. You aren’t giving me a hard time MRSC, I appreciate your help.

I got in contact with him through my fiancé’s father. I went down to the diamond district and sat at the guys desk while he pulled from a wall that probably had thousands of diamonds !

I received a GIA cert, the number is 15675952.

Looks like I should get it appraised by an independent appraiser. Someone above mentioned there are two types of appraisals. Do all appraisers do appraisals for insurance purposes? Will insurance companies accept appraisals from all appraisers?

 

[Lorelei]

Date: 12/23/2008 3:04:39 PM
Author: RookiefromNY
Thanks for all the posts. You aren’t giving me a hard time MRSC, I appreciate your help.

I got in contact with him through my fiancé’s father. I went down to the diamond district and sat at the guys desk while he pulled from a wall that probably had thousands of diamonds !

I received a GIA cert, the number is 15675952.

Looks like I should get it appraised by an independent appraiser. Someone above mentioned there are two types of appraisals. Do all appraisers do appraisals for insurance purposes? Will insurance companies accept appraisals from all appraisers?

Basically these inflated appraisals are based on a ' feelgood' factor, you often see these marked up a huge amount from what you actually paid. For insurance, it can be a waste of money paying premiums on these amounts as you won't get that amount back necessarily should you ever need to claim. I would recommend getting an independant appraisal ( using someone like David Wolf as mrsv mentioned), tell him you want an appraisal for insurance purposes and he can give you a suitable amount.

This page goes into detail about the appraisal process and options.

https://www.pricescope.com/appraiser.asp

You can use this tool to find more appraisers in your area - https://www.pricescope.com/appr_list.aspx

 

[Judah Gutwein]

Mega Dittos re: Lorelei's take.

 

[Lorelei]

Date: 12/23/2008 3:29:53 PM
Author: Judah Gutwein
Mega Dittos re: Lorelei''s take.

Thanks Judah!!

 

[Modified Brilliant]

Hey NY,

I''m also in agreement with Lorelei (she always speaks with knowledge and great common sense).

Your "appraisal" provided by the seller was a "feel good" appraisal.

Absolutely, seek out a credentialed gemologist/appraiser who can verify, discuss, and assign

a reasonable replacement value suitable for insurance purposes. Use your time with the

appraiser as "your time" to ask any and all questions pertaining to your new ring.

Best holiday wishes!

www.metrojewelryappraisers.com

 

[Modified Brilliant]

Hi Judah

Welcome aboard.

www.metrojewelryappraisers.com

 

[musey]

Date: 12/23/2008 3:50:52 PM
Author: Lorelei

Date: 12/23/2008 3:29:53 PM
Author: Judah Gutwein
Mega Dittos re: Lorelei''s take.

Thanks Judah!!

Thritto. Lorelei explained it very well!!

 

[swingirl]

Here is a stone just like yours from Blue Nile for a little less.
Blue Nile 2.05ct I SI1 - Very Good Cut

I doubt that $32k could be the "retail" price. And it doesn't make sense to pay for insurance for more than what it would cost to replace the ring.

 

[Judah Gutwein]

Jeff!

Hi and thank you. It''s good to be on board

Best,

 

[denverappraiser]

An insurance type appraisal should be describing the merchandise in sufficient detail that you can replace it with another like it in the case of a loss and should provide a sufficient budget to allow your insurer to do that. This doesn’t sound like what you got. Aside from paying for coverage that you don’t need, you should check the details in the description and photographs to make sure they are sufficient to do what you need or you may not even be getting the coverage you want. As you are observing, ‘free’ appraisals can often turn out to be terribly expensive indeed.

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

 

[Lorelei]

Musey, thanks dear!

Jeff! Thanks for your very kind words, I appreciate it very much! Enjoy the Holidays and if you are doing the eat what you want for 3 days plan, thats what I will be doing!

 

[bee*]

I totally agree with Lorelei-get an independent appraisal as well.

 

[strmrdr]

Good points Lorelei and Neil and Jeff.

Always ask yourself is the information in the appraisal enough so that someone that likely don't know a lot about jewelery to replace what you had in a fair manner.
My motto when it comes to insurance companies is bury them in paperwork.
The more relevant and accurate paperwork you have the better off you are.
Remember that the claims adjusters job is to carry out the terms of the contract at the least possible cost to the insurance company.