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Valuation vs. appraisal and what to request?

panda87

Rough_Rock
Joined
Feb 19, 2015
Messages
30
Hi, and apologies if this is addressed elsewhere but I could not find anything.

I have just received my engagement ring, which came with:
1. the jeweler's "guarantee of exceptional value" which just states what the item is, the stock reference number, purchase date.
2. GIA report

I did not buy the ring locally and did not think to request a valuation from the jeweler. However, I would now like to do so, mainly for insurance purposes. I have read that it is advised to get an independent appraisal, and I have also read that valuations are pointless.

So, I am hoping for some advice:
- Should I request a valuation certificate from the jeweler? If so, is there anything specific I need to ask them?
- Should I get an independent valuation or appraisal (I understand appraisal is more the descriptive)? Again any specifics to ask?

Another thing I am concerned about, is if I get an independent appraisal, will they need to remove the stone, or will it be sufficient to provide them with the GIA report and they can go off that?

Thanks in advance :)
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
9,153
Not surprisingly, I'm a big fan of IA's but I'll leave it to others to talk about that since there's an obvious conflict of interest. Maybe I'll chime back in later.

The difference between valuation and appraisal mostly has to do with what side of the ocean you're on. It's sort of like the difference between gemology and gemmology. The British, and most other English speaking countries, call them valuations and Americans use the term appraisal.

It's likely that the guarantee of exceptional value is guaranteeing nothing of the kind. Read the fine print.

The primary purpose of the document you submit to the insurance carrier, in context of your insurance, is that it defines 'like kind and quality'. Replacement with like kind and quality, or words to that effect, is probably what the insurer is agreeing to do in the case of a loss. That means the description, the measurements, the counts of various things, metal tests, photographs and so on are more important to them than the value conclusion. Some jewelers provide pretty good documentation of this sort of thing, some don't. You can usually tell by simply reading the report. Imagine a loss and imagine the insurer replaces with the cheapest thing they can get that complies with the description given. Are you likely to be happy? Is enough information present to even DO that?

Most appraisers are accustomed to inspecting things in the mounting. I, for one, do it regularly. How they handle the GIA is up to them but, in the case of my own practice, I definitely reference it. I'll let you know if there's anything I disagree with, and even if there's not, but I not only reference it, I include a copy of it in the report.
 

ADN

Shiny_Rock
Trade
Joined
Nov 24, 2015
Messages
311
Hi Panda87 - congrats on the new ring.

1 - that can also be called a receipt ;-) ...good to provide this to the valuer
2 - you'll need to provide the GIA cert (or a copy) so that the valuer can compare it with the stone in your ring

I wouldn't recommend getting a valuation/appraisal (you say tomato...I say tomato...that doesn't work so well in print :lol:...but they're the same thing ) from the supplier - should always be done by a third party.
The GIA cert makes sure it is what it is (but doesn't assign a replacement cost)
The valuation is a 'repalcement value' for insurance purposes - unless you're really interested in what they do, you won't have to ask them anything specific - - they will provide details about the piece (gold/diamond quality/weight...etc.) and assign a $ value to it.

As to the argument as to whether a valuation is pointless...I'll leave that up to others to discuss inflated valuations / higher premiums / etc...but the one time that they aren't pointless is when you are trying to get your insurance company to pay out...

And no, they won't have to take your ring apart.
Hope this helps
 

Diamond_Hawk

Brilliant_Rock
Trade
Joined
Apr 8, 2014
Messages
1,229
panda87|1451824663|3969963 said:
Hi, and apologies if this is addressed elsewhere but I could not find anything.

I have just received my engagement ring, which came with:
1. the jeweler's "guarantee of exceptional value" which just states what the item is, the stock reference number, purchase date.
2. GIA report

I did not buy the ring locally and did not think to request a valuation from the jeweler. However, I would now like to do so, mainly for insurance purposes. I have read that it is advised to get an independent appraisal, and I have also read that valuations are pointless.

So, I am hoping for some advice:
- Should I request a valuation certificate from the jeweler? If so, is there anything specific I need to ask them?
- Should I get an independent valuation or appraisal (I understand appraisal is more the descriptive)? Again any specifics to ask?

Another thing I am concerned about, is if I get an independent appraisal, will they need to remove the stone, or will it be sufficient to provide them with the GIA report and they can go off that?

Thanks in advance :)

panda87,

You are getting great information here.

It is also important to note that standard home-owner's insurance will often claim to cover replacement of your jewelry but is often not what you expect. They may, for example, match carat, clarity, cut and color - but we all know the variations within those criteria are huge. If you have a branded diamond, this is especially important.

Many jewelers recommend a separate rider for your specialty or wedding jewelry, or an independent insurance company separate from your home-owner's policy.

Best Wishes!
 

panda87

Rough_Rock
Joined
Feb 19, 2015
Messages
30
Thank you all for your helpful responses :)

denverappraiser|1451828630|3969972 said:
It's likely that the guarantee of exceptional value is guaranteeing nothing of the kind. Read the fine print.
ADN said:
1 - that can also be called a receipt ;-) ...good to provide this to the valuer

It's really just a fancy receipt - in a little folded cardboard thing with minor details on one side and some typed script about the jeweler. I did just read it and supposedly I should have received a free written valuation because my purchase exceeded the stated amount. I shall be chasing this up!

Diamond_Hawk said:
Many jewelers recommend a separate rider for your specialty or wedding jewelry, or an independent insurance company separate from your home-owner's policy.

Thanks for this, I hadn't thought about looking into it from the insurer side of things. I did look a while ago and I know they insure for anything worn on person which I thought was important, but I will check further.

Another question - I have found a store that is registered with the national council of jewellery valuers (Australia). There is only one in my area, and it is a chain jewellery store (only small - 15 stores nationwide). Do you think this is fine? There are a couple of independent jewellers in town that offer valuation but would they hold less weight if not registered?

Thanks again :)
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
9,153
The weight here, such as it is, is with YOU. Insurance companies will usually agree to just about anything, at least until claims time comes along. It's you who should be picky. I don't know anything at all about organizations in Australia, but I would start with a requirement of using someone who presents themselves an an appraiser, not a jeweler who is doing it as a sideline. Doing a methodical inspection and writing a good report about it isn't rocket science, but it's not as easy as people seem to think either.

It's highly likely that the registration means nothing outside of legal circles, but that would be a good question to ask that particular valuer.
 

ADN

Shiny_Rock
Trade
Joined
Nov 24, 2015
Messages
311
panda87|1451911309|3970330 said:
Thank you all for your helpful responses :)
Another question - I have found a store that is registered with the national council of jewellery valuers (Australia). There is only one in my area, and it is a chain jewellery store (only small - 15 stores nationwide). Do you think this is fine? There are a couple of independent jewellers in town that offer valuation but would they hold less weight if not registered?

Thanks again :)

Hey M8 :wavey: - the National Council of Jewellery Valuers are the ones to use - they're very well regulated - if you're struggling, let me know and i can point you in the direction of a few other good ones here in Aus - depending where you are.
Good luck
 

laurenk

Brilliant_Rock
Joined
Nov 12, 2011
Messages
973
Hi panda
What part of Australia are you in? I'm in Brisbane and I have for my current ering a typed valuation stating replacement costs including picture and thorough description and stating the US exchange rate at the time of purchase.

My insurance company has a copy of this and a picture of the ring on my hand with a time stamp so they can show I actually have the ring in my procession.

I havnt had to claim on this thank goodness but have made other claims (cars etc...) with the utmost ease and most are cash settlements.

I specified when I took out insurance (I added to my home contents and have the "away from home" option so that if I loose it or it gets stolen anywhere in Australia or NZ I'm covered. With three small children and running around I wanted peace of mind.

That being said - there is an independent jewellery valuer in Nerang on the way to the Gold Coast who has very good reputation and reviews. When I get my new pear ring I will take it there.
 

gr8leo87

Shiny_Rock
Joined
Apr 24, 2015
Messages
381
You can google Australian Jewellery Trade Directory. And on their website they have all the valuers listed state wise.

If you have purchased an specialty diamond like a Hearts & Arrows it makes sense to get this included in the appraisal/valuation along with corresponding photos of the diamond so god forbid anything goes south you will be replaced with a diamond with like 4Cs and like auxiliary Cs, Ps, Ds, Ts etc.
 

panda87

Rough_Rock
Joined
Feb 19, 2015
Messages
30
Thanks again guys. ADN, I am in the Northern Territory, so options are pretty limited. I would be grateful if you do have any advice though - I was quoted $60 per piece and was hoping to get a few other items valued at the same time, but this would get pretty expensive quickly!
 

gr8leo87

Shiny_Rock
Joined
Apr 24, 2015
Messages
381
panda87 said:
Thanks again guys. ADN, I am in the Northern Territory, so options are pretty limited. I would be grateful if you do have any advice though - I was quoted $60 per piece and was hoping to get a few other items valued at the same time, but this would get pretty expensive quickly!
If you're getting more than just one piece valued you may ask for a wholesale discount. Doesn't hurt to ask right. Good luck!
 

ADN

Shiny_Rock
Trade
Joined
Nov 24, 2015
Messages
311
panda87|1452072291|3971543 said:
Thanks again guys. ADN, I am in the Northern Territory, so options are pretty limited. I would be grateful if you do have any advice though - I was quoted $60 per piece and was hoping to get a few other items valued at the same time, but this would get pretty expensive quickly!

Hey mate - that's about the going rate - it does take a valuer a bit of time/skill/care/attention to do a piece for a valuation - and since they're the ones that have to put their name to it, they want to get the details right. But like the other poster suggested, ask for a bundle price if you have a number of items.
 

panda87

Rough_Rock
Joined
Feb 19, 2015
Messages
30
Thanks guys I will give the bundle price a try :)

And I did have a look at prices and a few places have indicated $80+ so it is pretty reasonable. I might just need to prioritise my pieces instead of just getting some done out of curiosity..
 
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