Are you curious to learn more about a piece of heirloom jewellery that was handed down? Does your insurance provider require certification for your jewellery?
To learn about what’s been happening in the exciting world of jewellery appraising, we recommend checking out the Q&A
What are the main reasons why I should get my jewellery appraised?
There are many diverse reasons for getting jewellery appraised, or valued. The most common reason clients bring jewellery in for appraisal is for the appraiser to produce a valuation that will document the characteristics and quality of their item and to conclude a value to be used for insurance purposes. However, this is not the sole reason for an appraisal. Clients also ask for appraisals for estate purposes, to be used in equitable distribution of the estates assets, or for estate tax preparation. Sometimes the client may be more concerned about the quality and gem identification of a piece, rather than the value. An appraisal can also provide price guidance for plans to privately sell a piece of jewellery. Damage and condition reports are also noted which provide valuable and sometimes urgent maintenance and repair advice.
How often should I get my jewellery appraised?
Values change over time and with regards to insurance appraisals these changes in value must be considered. It is recommended by many insurance companies that insured jewellery should have their values reviewed and updated every five to seven years. If an appraisal becomes too old and the value becomes outdated, it could potentially undermine the value in the event of an unfortunate insurance claim, because the insured maximum limit may be less than the actual cost to replace.
What has been happening to values of jewellery in the last 5-10 years?
There is a common misconception that jewellery always increases in value. Although that is often the case, not all elements of jewellery move in the same direction at once. Some components may be up and some down at any given point. Jewellery and gemstone values are subject to the market forces, both locally and internationally. Changes in fashion, supply and demand, world economics as well as unprecedented events such as the COVID 19 pandemic all play a major role in how jewellery is valued. At today’s record setting high gold bullion price, gold jewellery certainly costs more today than it did 10-15 years ago. Labour and costs to produce jewellery are also constantly rising. However certain jewels, for example, a particular type of cultured pearl necklace, may be worth the same or less today than years ago, due to market forces of supply and demand as well as changes in fashion. Overall, most jewellery is subject to inflationary pressures and generally increases in value over time.
What about appraising lab diamond vs mined diamond jewellery. What's happening to prices?
Lab grown diamonds have exploded both in popularity and availability over the last ten years. Improved technology and increased productivity have caused more diamonds of much higher qualities to be produced in all shapes and sizes. These influences have continually, and in some cases. substantially reduced prices over this time period, especially in the last five years. This means that appraised values have dropped and this would be reflected on an appraisal report, even if a lab grown diamond is only a few years old. No one knows for sure if this continuous decrease in values will continue in the future, but price decreases seem to be moderating of late.
Mined diamonds have historically risen in price over the years, or remained relatively flat in price for certain time periods. However, the mined diamond market has certainly experienced unprecedented upheavals in the last five years. Before the Covid pandemic, and especially during that period, prices rose at a rate rarely experienced in recent memory. Then, over the last few years, prices have atypically softened conversely. In spite of these near term extreme highs and lows, mined diamond values have remained more stabilized, both retaining and increasing in value on an overall long term basis.
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