Estate Jewelry and Appraisals
“How much is this ring worth?” “I inherited this brooch from Dear Auntie Sophie. Is it real?” Do you have jewelry worth thousands of dollars or rhinestones and pop-it beads? Do you need an appraisal and if so, what kind?
There are many varieties of jewelry appraisals with their own specific purpose, including insurance replacement or fair market value, each with its individual market value.
Aunt Sophie has passed away and you offered to help settle her estate. You will be dealing with the jewelry. You may need an Estate Appraisal. This type of appraisal reflects an estimate of the current “fair market value” of the items in their present condition. Fair market value never represents the retail replacement value of similar items. The term “fair market value” is defined as the price at which such property would change hands between a willing buyer and willing seller, neither under the compulsion to buy or sell, and both have reasonable knowledge of the relevant facts.
In short this type of appraisal values the jewelry as “used” in its current condition in the market in which used jewelry would be bought or sold, typically as “second hand”.
Often, persons who inherit jewelry find that the pieces are not suitable to their tastes and are at a loss as to what to do with them. There are several avenues of opportunity. Jewelry can be sold for cash to establishments that purchase estate jewelry. As a rule of thumb, for contemporary pieces or those that have no provenance, cash offers range from 20 – 30% of actual retail replacement value. Remember, actual retail value is not an inflated price prior to a discounters “sale” but what was actually paid for a new item.
Another alternative may be to consign the jewelry and pay your jewelry representative a fee for this service. You will pay, typically, about 30% of the consigned purchase price for the service of displaying and selling the jewelry, as well as the jeweler’s insurance while the jewelry is in their care. Consignment will bring a higher pay back to you than a cash offer. However, this puts you in the jewelry business, so to speak, as you will wait until the piece is sold and the time frame of the return policy (usually 30 days) before receiving payment.
Additionally, you can consider the option of redesigning the jewelry to suit your tastes, which can preserve the loving memories of the inherited elements in your new design. As a fourth option you can trade-in the inherited estate jewelry for a new item.
If you have chosen the route to redesign your estate piece or trading in the estate jewelry for a new item, consider an Insurance Replacement Appraisal, which indicates retail replacement cost. Retail value means the price at which the consumer would most commonly pay a retail establishment in the business of selling jewelry.
To be put more simply, the value of a currently owned piece of jewelry that is lost or stolen is insured to be replaced with a similar piece that is new; the exception is an antique or vintage piece. These items are replaced with similar items from the same period in a similar condition.
The difference in the values and types of appraisals rests in the markets, in which, the jewelry is bought or sold and the condition and quality of the piece. In any case, it is advisable to seek out a qualified jewelry appraiser with recognized credentials, such as, a Certified Gemologist Appraiser. They are certified title holders by the American Gem Society; the only entity that titles jewelers in such a manner. CGA’s must be tested and certified annually to ensure that their expertise is current and maintain their credentials.
Whether settling an estate, finding out the value of a jewelry item or taking steps toward proper insurance coverage a thorough, accurate, detailed appraisal will be the very protection you seek when there is a need for a settlement or a loss.
Barbara Hight-Randall is a Graduate Gemologist and Certified Gemologist Appraiser for Hight & Randall, Personal Jeweler. You can e-mail your jewelry and gem questions to Barbara@personaljeweler.com