Diamond appraisal is basically a document which contains the information about all the characteristics and estimated value of the respective diamond stone. These appraisals are issues by qualified professionals, who are trained to grade gemstones and research the jewelry markets.
There are three types of diamond appraisal values, which are:
The diamond fair market value is a general term which means that the market value of diamonds. In other words, the value of a diamond in the wholesale market is a fraction of the value in the retailing markets. Always be aware of what the market uses in the research to give the appraisal value of the diamonds.
Diamond replacement value lets you know how much amount of money you’d need to spend to purchase the same diamond as the one which is already appraised. The value usually resembles the one in the current retail price of the diamonds of the similar quality. Remember that these appraisals are done at a certain time, years later the price can change. This kind of appraisal value is useful when the diamond stones are appraised for insurance purposes.
The word resale is clear enough. But diamond resale value is the amount of money you will receive if you sell the diamond stone to the dealer or a jewelry store. These values are usually lower than the retail market values. It can be between 20 and 60 percent of it. Retailers want to make profits and that’s why they do not pay a lot more than the wholesale price if you sell the stone to them.
The purpose and issuer effect of appraisal value: -
The appraisal value depends on the reason of the appraisals and the party doing the evaluation. There are two kinds of appraisals done. They are –
Appraising the diamond to know its value for insurance reasons is the most common purposes why appraisals are issued. This value helps the insurance company to know how much premium you will need to pay for the policy. The insurance appraisal value document is based on the how much will it take to replace the diamond at the time during the appraisal. The amount is equivalent to the retail rate of the diamond or sometimes a little higher.
Appraisals given by jewelry retailers
A lot of sellers offer appraisal for the diamond jewelry, or other jewelry you buy from them and the service is usually free. But these kinds of appraisals could be biased. Do not assume that the value in this document shows what value is currently in the market. Check other sources of price information.
Find out the value: -
If you are a purchasing a heavy duty engagement diamond ring or any other diamond necklace then you should be finding out the appraisal value of your diamonds. There are 2 different ways to find out the value of your diamond. One is to take help from a professional and expert appraiser or check market prices and narrow down to a value for your stone yourself.
Whenever you get the diamonds appraised, remember these things…
Firstly, you should be clear and loud about the reason why you require the appraisal value for the diamonds when dealing with an appraiser. Secondly, make sure the professional you pick for this work isn’t just a trained gemologist but an expert in valuation and has experience in it. If the person does not know anything about valuation, you will end up with the incorrect appraisal. Lastly, keep in mind that there isn’t any conflict of interest involved. If the appraisal value you get from the vendor who is selling the diamond can be biased or wrong too. So this appraiser should be an independent professional worker.
Pick the correct ways to get your diamonds appraised!
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