Appraisal

An overview and guide to jewelry appraisals

Insurance Appraisals

The majority of appraisals done today are for insurance replacement (retail replacement) purposes. The purpose of insurance is to return the value of the item in the event of loss. Therefore, insurance appraisals should reflect the realistic cost of replacing an item in a jewelry store that regularly sells the type of item being appraised.

A guide to Jewelry Insurance from Jewelers of America.

Fair Market Appraisals

This type of appraisal reflects an actual selling price between a willing buyer and seller, when neither is compelled by time or need to buy or sell in the item’s most common market.

Fair Market Value Appraisals represent an item’s value in its current (used) condition. Fair Market Value is generally required for charitable donations and estate appraisals. Fair Market Values may run lower than retail replacement values, because replacement values often reflect the cost to replace a used item with a new equivalent, where Fair Market Value Appraisals represent the value of the item in it’s current, used condition.