Ever looked at your jewelry collection and thought it’s time to let go of some of them? If that’s the case, you might’ve considered selling your piece. But then, there’s just so much to think about. How much should you sell the necklace for? Should you get a diamond ring appraisal? These questions are essential, but for you to fully take control should you wish to resell your items, it’s best to know the key terms and differences between them. Specifically, it’s important to clarify the difference between jewelry appraisal vs. selling price.
So, whether you’re considering reselling your simple gold chain or adding insurance for your diamond engagement ring instead, read on to learn more about the terms associated with these processes.
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Understanding Jewelry Appraisals
What is Jewelry Appraisal?
A jewelry appraisal is a process where a professional appraiser examines your ring, necklace, watch, or other types of jewelry to set a monetary value, usually used for insurance or tax purposes. To determine this assigned value, the appraiser considers quality, weight, metal value, location, brand name, and others. Appraisers follow the same standards, but it still depends on the opinion of each professional.
How it Reflects Jewelry Value
The appraised value reflects the highest or maximum possible value of your piece of jewelry. With this in mind, you might think that the appraised value is the same or around the same amount as the selling price or resale value, but that’s really not the case. So let’s get into more details about why that is.
Difference Between Jewelry Appraisal and Selling Price
The appraisal value differs from the selling price simply because the appraiser determines the former, and the seller determines the latter. The seller might consider the appraised value if they want to (some sellers would show you an appraisal when you buy your piece), but this would still depend on how much they want to sell an item for. The selling price considers factors ranging from the cost of labor or item brand to external factors like the market value.
Appraisal vs. Market Value of Jewelry
The market value reflects the demand for a piece at a particular time. Especially in the jewelry industry, this could change throughout a particular period. For instance, in the first quarter of 2023, the demand for gold necklaces will increase, then the market value of this type of jewelry will also increase. Then, after a few months, it’s possible that this value could then decrease or increase a lot more than the original price. This is, again, different from an appraised value, which is assigned by an appraiser. The market price does influence the appraised value, but they are not the same.
Appraisal vs. Resale Value of Jewelry
Now, what is the difference between an appraisal and a resale value? The key difference is that the appraised value is much higher than the resale value. Appraisers assign a higher or “inflated” value to a piece. If used for insurance purposes, which is usually the case, the appraised value helps insurance companies determine the replacement value of your item.
As an example, let’s say you own a diamond ring. The replacement value (determined by an appraisal) shows how much the ring is as if it were brand new. In short, it considers the original purchase price. This would then allow insurers to determine how much you can insure the ring for and an estimate of how much you would get in case something happens to it.
On the other hand, the resale value is much lower because it’s no longer considered new. Basically, you won’t be able to sell your secondhand diamond ring for its original price anymore because it wears over time, so it would definitely be worth less after some time has passed (unless it becomes a rare piece that becomes more in demand).
Should You Get an Appraisal Before Selling Jewelry?
Technically, you don’t need to get an appraisal before reselling your jewelry since it’s been established that these values are not the same. However, it still does come with some benefits should you choose to get an appraisal.
For one, if you want to keep your piece insured with your real estate before selling it, it helps make you feel at peace knowing that you wouldn’t totally end up with nothing should something happen to it. So you can keep your item without fear.
It also helps to have a baseline about how much your piece is worth. As mentioned numerous times, it does not reflect the resale value or selling price, but if you need to figure out how much your gold necklace would sell, the appraised value can help you have an estimate. Just remember to manage your expectations.
Get an appraisal from Willyn Villarica Jewelry
If you decide to get additional insurance for your jewelry as part of your real estate policy or just want to learn more about your treasured jewelry pieces, reach out to Willyn Villarica Jewelry! As a professional jewelry appraiser recognized by NAJA – the only one recognized in the Philippines – you will get quality service for your appraisal.
Willyn Villarica is your trusted partner for jewelry appraisal services, catering to clients around the globe. Our expertise and commitment to excellence ensure accurate and reliable assessments of your precious gemstones. It’s important to note that while we offer our services worldwide, clients are responsible for covering all travel expenses. Don’t miss out on the opportunity to have your diamonds expertly graded by Willyn Villarica.
Reach out to us through our email: email@example.com. You can also connect with us through our Facebook page (Willyn Villarica Jewelry) or Instagram (@willynvillarica_jewelry).