The most common type of appraisal for your diamonds and fine jewelry, also known as Retail Replacement Value, values jewelry at the brand-new retail price for insurance replacements. This appraisal includes a full description in case of loss, theft, or damage. This appraisal would contain a detailed description of the mounting and the gemstones in the piece as well as a photo. The detailed description will aid the insurance company in replacement in case of loss and will also ensure that the owner receives an item of like quality.
An appraisal of jewelry and watches is usually required before individuals or a court can divide marital, partnership, or prenuptial assets. These appraisals establish the Fair Market Value* the items. The most important factor is having all the values determined in the same market. The rules of Fair Market Value (see definition below) apply. *Fair market value (FMV) is the value of the jewelry when the buyer and seller have adequate information of relevant facts about the jewelry and are willing to buy and sell without pressure. To see the full definition, click here.
Collateral appraisals are used when gems and/or jewelry are used in place of cash in a transaction. The value is based on the limitations for property disposal. This could be Fair Market Value* or Liquidation* (definitions below).
The basis in which the items will be appraised are discussed beforehand. The appraisals can be completed based on Fair Market Value* or Liquidation (definition below). The most important factor is having all the values determined in the same market. Fair Market Value (FMV) is the value of the jewelry when the buyer and seller have adequate information of relevant facts about the jewelry and are willing to buy and sell without pressure. To see the full definition, click here..
Fair Market Value – is set forth by the Treasury, defined as the amount at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. The Fair Market Value is not determined by a forced sale. The markets considered for this type of appraisal would include: auction, tag sales, internet sales etc. The values are based on the condition of the items at the time of the appraisal.
Liquidation – represents the amount of money that would be obtained when converting the property to cash within a defined time period. There are two types of liquidation: Orderly and Forced.