When do you need a re-appraisal of your diamond?

[ZhenyaH]

I understand that you want to get the diamond appraised at the time of purchase (before/after and after it''s been set) for insurance purposes. But is it ever necessary to get it re-appraised after you''ve had it for a while--perhaps to reassess its value, etc?

I never got my diamond independently appraised. After about 3 years, I''m wondering if it''s a good idea to get the diamond appraised since it''ll have to taken out of its setting for a repair job.

Also, is it really necessary even if your dimaond is just average? or even fair?

 

[denverappraiser]

Updating the value on a diamond rarely involves removing it from the setting so synchronizing it with your repair needs really isn’t necessary unless your plan is to change the setting to something completely new.

Most insurance companies want you to have the ring inspected every 2-5 years so that they can be confident that you’re keeping up with your maintenance needs as well as to demonstrate such simple things as that the piece still exists, that it’s still in your possession etc. They’ll let you know if they need this.

For your own purposes, you can (and should) have this maintenance inspection done at any convenient jeweler and the issue will be one of changes in value. This will depend on what you have, how it was valued and how the market is changing. If you’re concerned that you may be underinsured, ring up your appraiser and ask them if they think it would be worth re-evaluating the piece.

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

 

[oldminer]

What Neil has told you is 100% correct. In a more general way, anything you insure needs a re-appraisal when the market for that item or general inflation has upped or lowered the value.

The market for diamonds has been unusal in the past few years. Costs at wholesale have moved up, but retail replacement value has not increased at the same pace for most commonly bought stones. There is a definite squeeze on profit margin for most diamond categories.

Ijnflation is something that transmits into general price increases as it also transmits into general cost increases at every level of doing business. Overhead goes up. Think of the endless increases in rent, medical expense, electricity, shipping, travel, fuel, etc. These forces serve to raise asking prices in spite of the squeeze on margin.

One way to check if you have sufficient insurance on you major diamond is to run a current Pricescope search on a stone just like your won. See what replacement would be today. Compare this to what you paid and what you diamond is insured for. Remember to add in the value of the mounting. You can keep track of the need for more or less insurance by running an annual scan and comparing the records for increase, static or decrease.

 

[sfritz]

Jen: We recommend that you have jewelry inspected and the values updated at least every three years. This assures that your jewelry is in good repair and that you have an appropriate limit of insurance to cover a loss. When the metals or diamond markets are volatile, you may want to have the values reviewed more frequently.

Having your jeweler clean and inspect your jewelry every year will keep your jewelry looking its best and identify little problems before they become big ones.

Sue Fritz
Jewelers Mutual Insurance Company

 

[chrono]

I''m not sure if I should start a new thread on this:
What about stones that are no longer cut? For example, my Jubilee is no longer in production. How does that affect its value? I''d rather have another Jubilee than cash out but I guess that''s not possible since there''s no more Jubilees.

 

[denverappraiser]

Make a new thread. This is a terrific question.

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