Tag Archive: diamond appraisals

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: Pixabay.com, user: Wounds_and_cracks

7 Ways To Spot A Fake Diamond

how to spot a fake diamond

When it comes to jewelry, it’s always difficult to establish the true value of a piece, especially if it’s of unknown origin or you suspect it to be fake. Most fake pieces of jewelry on the market are diamonds, because these gems are so high in demand. They make the perfect gift for engagements, birthdays, anniversaries, you can basically never go wrong with diamond jewelry. However, what if some of these gifts are not diamonds at all? Before checking with an expert, you can easily spot rough imitations of real diamonds with the help of some tricks.

Here is How to Spot a Fake Diamond:

  1. The transparency test. Place your diamond on a newspaper or any piece of paper with writing on it. If you are able to read through the diamond, than it’s most likely you have  a quartz or glass diamond. Real diamonds bend light because of their high refractive index, which makes it difficult to see through them, let alone read.
  2. The fog test. Diamonds are very good heat dispersers. If you hold a diamond to your mouth and blow on it, like you would when cleaning a mirror or a glass surface, a real diamond should evaporate the fog instantly. If it stays on the diamond for more than 3 or 4 seconds, you’re probably dealing with a fake.
  3. The weight test. If you own a carat or a gram scale, check the weight of your diamond. Fake ones usually weight 50-60% more than real diamonds of the same size.
  4. The sparkle test. Look very closely at your diamond’s sparkle. If you see many rainbow reflections, as beautiful as they may seem, they’re a sign of a low quality diamond or even a fake.
  5. The light test. This test can be made only if you have UV light or Black light at hand. The diamond should be placed under UV light or Black light in a dark room. If it has a blue, fluorescent glow, than it’s a real diamond. The absence of blue glow doesn’t necessarily mean it’s a fake, it could mean you have a high quality diamond. Green, yellow or grey fluorescence under UV light are common mostly for fake diamonds.
  6. The flaw test. Even though they are so expensive, diamonds are not flawless. They have tiny cracks, pinpoints or traces of carbon, called inclusions. These tiny flaws can affect the clarity of the diamond. Check with a magnified glass for inclusions and if you can’t spot any, there are two possibilities: you either have a very rare and expensive diamond that scores high on the clarity chart, or you have a fake.
  7. The metal test. As diamonds are expensive, they are usually set in precious metals, such as Palladium, Platinum, Gold or Silver. Check the jewelry for a hallmark. If  the hallmark has a (CZ) on the stamp, than your diamond is a fake, because it stands for “cubic zirconia”.

Keep in mind all these little tests don’t guarantee you accurate results, they might just help you spot really bad diamond fakes. There are so many great imitations out there, that you simply have to request professional help and get your diamonds appraised by a certified gemological laboratory. Not only will you be ensured about the quality of your diamonds, but they will be authenticated and certified. Even more, you can get insurance for your diamonds, as you would for your house or your car.

The Accredited Gemological Institute AGI New York, provides all the services above, and much more. Visit us and find out more abut our services.

Photo credit: PublicDomainPictures.net