For many of us, our treasured heirlooms are priceless; whilst you can put a price on precious metals, gemstones and quality, you cannot put a price on history, emotional resonance or the connections it has to your personal story.
Some pieces of jewellery will likely never be sold but instead are passed down from generation to generation or are kept forever by their owners. However, sometimes you want to or need to sell a particular piece.
How can you put a price on something priceless? This often requires an expert jewellery valuation, where someone with a detailed eye and extensive qualifications examines every detail of a piece and provides a detailed, considered estimate of its fair market value.
It is a complex process, but here is everything you need to know about jewellery valuation, why it is done, how it works and when you should book one.
What Is A Jewellery Valuation?
A jewellery valuation or appraisal is a formal examination of a particular piece of jewellery, undertaken by a certified expert in the field, which provides a written report detailing what they estimate the value of the piece to be.
However, value is itself a very complicated concept, and there are multiple definitions of value that appraisers will use depending on the specific reasons why they are being valued.
Traditional Valuation
The traditional definition of value is the agreed price between a person willing to sell and a person who knows what they are buying.
In the context of the jewellery world, this is usually defined as the sale between:
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A willing seller, not selling under duress and thus able to wait for the best offer.
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A knowledgeable buyer, completely aware of the piece they are buying, the materials it was made from, the maker’s mark and other vital information that may affect its value.
This is the principle behind valuations, but most appraisals have more specific definitions of value.
Replacement Value
Also known as insurance value, this is the cost according to an appraiser to replace a particular piece with either an exact replica or a piece as similar as possible, taking into account age, quality, defects, wear and availability.
Fair Market Value
A similar but more precise version of a traditional valuation, fair market value is the estimated price a willing seller and knowledgeable buyer could trade a piece of jewellery for in current market conditions.
The fair market value can often change depending on the demand for the particular piece or pieces like it, as well as based on other market factors.
Liquidation Value
Seldom undertaken by a jewellery appraiser, the liquidation value is how much a seller under duress is likely to get for an item, typically based on the likely selling price if sold quickly or even the scrap value of the materials.
Why Do People Get Jewellery Valued?
There are several differing types of valuation because everyone has a slightly unique situation. Here are the most common reasons why people request a valuation, and how that changes the approach an appraiser may take.
They Want To Sell The Piece
The simplest and most obvious reason is that someone wants to sell a piece of jewellery.
Perhaps it no longer suits their style, perhaps they received it from a family member, and they cannot adjust it to fit, or they simply want to sell some of their collection.
To ensure they get the best price, they need to know what the fair market value is.
They Need To Sell The Piece Quickly
Conversely, sometimes the sale is not undertaken out of choice but out of obligation. If you need to sell quickly, it is important to check what price you can realistically get so you are not short-changed.
They Are Splitting An Inheritance
Valuations are often used to determine the price of heirlooms that are part of wills and probate arrangements, particularly if the intention is to sell off the pieces and divide the proceeds amongst the beneficiaries of the will.
They Are Dividing Assets
During divorce proceedings, assets are often split, and if a piece of jewellery is particularly valuable, it may need to be comprehensively valued to ensure an even split of assets.
They Need To Get A Piece Insured
In order to choose the right kind of contents insurance or insurance of valuable objects, an independent appraisal is vital. This is especially true if the item is insured for cash value rather than for replacement.
What Is Involved In A Jewellery Valuation?
Whilst appraisals can sometimes vary depending on the specialities of a particular certified appraiser, a valuation is a highly detailed operation which examines every possible detail in order to make the most accurate estimate of the piece’s value.
Initial Inspection
The first step is to look for and record information about every part of your item. This includes finding any identifying marks or details, measuring it, weighing it, assessing its quality and taking photographs of particular details for the report.
Gemstone Grading
Using specialist equipment, an appraiser will then examine any gemstones in your piece of jewellery.
The typical industry standard for grading diamonds, for example, is the “Four Cs”:
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Carat
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Cut
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Clarity
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Colour
Metal Purity Testing
At the same time, the precious metals, such as gold, silver or platinum, that your piece is made from will also be checked to determine how much precious metal content they actually have.
This often requires acid testing or the use of advanced machinery, as well as an expert’s eye for finding the true value of the materials.
Craftsmanship Valuation
The value of jewellery is not just found in the worth of its materials but in its design, the characteristic touches of its creator and the historical significance and context for which it was designed, as well as its condition and rarity.
Market Research
Once all of the key characteristics are examined and detailed, an appraiser will explore the market to see how much other pieces are selling for.
This includes not only the value of the materials but also the value of pieces by the same creator, the popularity of a particular design trend and any historical elements that can add value.
Valuation Report
The valuation estimate is provided to you via a formal report, which includes a breakdown of everything noted above, photographs detailing every element and the official price it is valued at.
In some cases, it can include grading reports for precious stones or certificates of authenticity, depending on the expertise of the appraiser.