Different Types of Diamond Appraisals and How They’re Used

diamond ring

Now days, everyone seems to think that coming across a diamond ring in some old jewelry box means they’re going to earn a fortune after selling it. Often you might read in a newspaper about a woman who found a diamond ring in her attic, or you watch a news report on television about someone who found a diamond ring in an abandoned storage locker and were able to make a consistent profit because that person managed to sell it for a very good price.

What the media doesn’t tell you is how a proper diamond appraisal is really done. In most cases, the value of a diamond can be very different, according to the type of appraisal made. Especially for estate jewelry, there are usually two types of appraisal meant to settle the value of a diamond jewel.

When a diamond is appraised, it’s important to make a difference between the replacement value and the market value (referred to as resell value in some cases). The replacement value means how much a brand new items costs. Therefore, if you have a diamond ring you bought a couple of years ago, the replacement value is equal to a similar diamond ring bought from a shop or a jewelry store. The market value represents the sum of money an owner would receive in the case of a resell. Simply put, you as an owner are not able to receive the same amount of money for  diamond jewelry like a jeweler or a store would, no matter how much you paid for it in the first place.

The resale value is calculated by taking several factors into consideration, such as the condition of the jewelry, market demand, fashion trends and the mark-ups undergone by a specific jewelry piece from a low wholesale price to a high retail price (in fact, the replacement value). Considering all these factors, it’s no wonder the dream of selling a diamond ring for thousands of dollars quickly bursts like a bubble, because often estate jewelry can be sold for a fraction of the original price.

Truth been told, it’s important to specify what you intend to do with a diamond appraisal, because for insurance appraisals, for instance, the replacement value is always used. That’s because insurance companies need to know how much money they have to pay in case of robbery, fire or other accidents that might occur. However, no serious buyer will be interested in your insurance appraisal, so you will need to get a market value appraisal. The confusion of these two values it’s what makes many diamonds owners wonder why their jewelry is not as much worth as they thought in the case of a resale.

Knowing the difference between these two values is equally important as finding the right appraiser. Even if some is a qualified gemologist, they still need to be certified, so be careful who you choose, because an appraisal done by a non-certified gemologist is not as valuable and many buyers or even insurance companies will not consider it. Not only a certification is what makes a gemologist the right person to perform the appraisal. It’s best to find some with experience in the field, someone who’s able to provide an appraisal as detailed and accurate as possible. Don’t forget to communicate with the appraiser of your choice what you intend to use it for, because, as stated above, the replacement value is used for insurance purposes, but it’s not useful if you want to resale diamond jewelry.

If you want to sell your estate jewelry and need to know exactly how much money you could get for diamond jewelry, or if you need to insure your diamonds, schedule an appointment with us and you can be certain you’ll receive the best possible services regarding diamond appraisals.

Photo:, user: Wounds_and_cracks

Diamond Insurance: Do You Need It?

diamon insurance

Everyone who owns a home has a homeowner’s insurance policy, and many people who rent property will have renter’s insurance. These policies are a means to protect them from loss in the event of theft or some type of disaster. While it is always a good idea to have these policies, they may not be enough to protect all of the valuables that you have, especially if you have some rather expensive diamonds. Owning diamonds can be a great investment, but you need to make sure you are able to protect that investment. Diamond insurance could be just what you need.


Different Types of Policies for Diamond Owners


Diamond insurance is generally a separate policy from the others that you have for your possessions, and it is specific just to your diamonds. However, it is also possible to have it added to your homeowner’s insurance. You can choose from replacement value policies, agreed value policies, and actual cash value policies. It is important to understand the distinction between them.


When you choose a replacement value policy, the insurance company will pay you a predetermined and agreed upon amount if something were to happen to your diamond. An actual cash value policy will pay out the current market value of the diamond. The agreed value policies pay an amount agreed upon by you and the diamond insurance companies after the theft. This is rarer than the other types of policy.


Finding the Right Company for Diamond Insurance


When choosing a company for an added insurance policy for your diamonds, always make sure they specialize in these sorts of policies. Research the insurer to be sure they are legitimate and that they have good customer service. The last thing you need to do is have a long and drawn out ordeal when you are trying to replace your diamonds after a theft.


You Need Insurance for Your Diamonds


Your diamonds often have sentimental value attached to them as well as financial value. While the diamond insurance policies are not able to replace the actual gems and rings that you might lose, and they can’t replace the sentimental value, they can at lease help you with the financial loss. Having these policies in place and never needing them is far better than being caught unawares. If you own diamond jewelry, it really is in your best interest to start exploring the options available for diamond insurance.



Importance of Stone Appraisal and Insurance


Diamonds aren’t cheap. Because of this you may want to consider having your diamonds and other precious stones appraised and insured. While the stones themselves will last more than your lifetime, situations can occur that are beyond your control. Just like any insurance, it is better to plan ahead so in case of emergency, you don’t have to scramble around to ensure your possessions are protected and covered. Following points will provide a deep insight into importance of stone appraisal and insurance


If you’ve inherited or been given a piece of jewelry that contains a fine diamond, the first thing you want to do is have it appraised. Certified appraisers will verify the four C’s of the diamond which includes color, cut, clarity, and carats. You will be given a full grading report detailing the proportions and finish of the diamond along with an estimated replacement value for your specific stone.

The purpose of having your diamond appraised isn’t just so you can flaunt its worth; it is more for your peace of mind. These detailed reports you will receive regarding the diamonds you have appraised will come in handy should anything happen that would require you to have them replaced. This is where diamond insurance comes in.


Just like your life insurance protects the ones you love from any financial burden, diamond insurance is there to protect your investment or inheritance in the event you are robbed or lose belongings due to an act of god.

Once your diamond has been appraised, you should keep the report in a place of safe keeping away from your home. A safety deposit box is ideal for these situations; that way you know if anything were to happen to your home, it would still be there. In the event your jewelry is lost or stolen or damaged beyond repair, the diamond insurance would give you either actual cash value, replacement value, or agreed value.

The actual cash value insurance would give you back, in cash, the amount the diamond is worth on today’s market rate rather than the actual amount paid for it. Replacement value insurance would give you a pre-determined amount to replace the diamond, which could actually be less than was originally paid. With agreed value insurance, you set a binding amount at the time the insurance is purchased and should anything happen to it you would receive that set amount of money.

It is a fact of life that bad things happen when you least expect it. By taking the initiative and having your fine jewelry pieces appraised at the time of purchase or receipt and then having them fully insured, you can be sure that your assets are protected in the event they are lost, stolen, or damaged. It is a wise investment to make when you consider the total value of your diamonds and other jewelry. It would be a shame to spend $25,000 on a beautiful diamond engagement ring only to have it lost within a year or two during your honeymoon or while she’s washing dishes. By appraising and insuring your diamond, you will be able to replace it without breaking the bank all over again.