Jewelry Appraisal

Part 1 of the mini-course
"How to Value Your Jewelry
at Home or Work"

© by David Foard F.G.A.A.; all rights reserved

What is involved in a jewelry appraisal?

You are about to discover the intricacies and formulas that highly qualified gemologists and valuers are using, right now, to evaluate and appraise gold, silver and platinum jewelry.

But before we begin, I would simply like to bring you up to speed on what will be required. As you know, the art of valuing jewelry takes many years to learn (over five years before you can graduate) and then it takes several more years to gain the necessary experience to "get it right".

Gemologists don't all become valuers because of this high level of study, which doesn't include the expense of microscopes and refractometers and dichroscopes and and and....

In this program we don't even want to get into what these pieces of equipment are because firstly, they are too expensive (you can pay thousands of dollars just for a binocular microscope); and secondly, you may not want to train as a gemologist or valuer.

So don't let that put you off because we are NOT trying to turn you into professional valuers overnight.

We don't want the jargon either. Just some simple facts. What we are going to achieve is nothing more than a simple understanding of what you need to know, to at least get a slippery grip on basic terms involved in jewelry appraisal.

The hardest part is NOT the testing or algorithms involved but mainly the correct and systematic identification of what you are trying to value. The calculations are nothing more than a natural outcome, which just proves what can be accomplished using the most simple school mathematics. If you can multiply and divide, and add money, you can understand this course.

Let's assume you are trying to get a ballpark figure on a piece of jewelry you own, or want to own, or sell, or insure. Which brings us to the first question.

What exactly is a jewelry appraisal or valuation?

This is an important yet sadly overlooked concept.

People simply want to "know what it's worth" - but that's a very subjective statement. For example:

What's it worth to you? Does it have sentimental value? If it does, there is no way we can measure or calculate for that. It's a personal thing.

What's it worth on eBay? That depends on whether you are a Buyer or a Seller. At the end of the day the value lies in what two people agree upon.

What's it worth if you bought it from your neighbor? - What's it worth to them or what's it worth to you? These are two different things.

What's it worth when your local jewelry store has a 50% off sale? Are you really buying a bargain, or is it just another ploy to get your money?

What's it worth if it's stolen? Does this value represent the true figure?

If you were Fagin in Oliver Twist, what would it be worth to him? Bet Fagin had a different price in mind when he traded with the Artful Dodger.

But what if you were the jewelry owner. What's it worth then?

The insurance company might have a different view than yours. After all, they want to replace it as cheaply as possible, while you want it valued as high as you can. You pay the premium for the privilege, of course, but it still remains very loose.

Tip: A jewelry appraisal or valuation is generally accepted as a price based on insurance assessment. ALL other valuations flow from this one rate.

So the answer lies in some form of accepted standard which must be based on sound principles, backed by REPEATABLE formulas which can be expected to be 'around the same figure' no matter where you go in the world.

And thankfully, it is. Gold is gold is gold... right?

Like humans, not all gold is created equally. Thankfully. A lot will depend on what part of the world you come from, and certainly can dramatically change the value of any jewelry item.

You may have wondered about that VERY yellow gold which comes from the Middle East or Asia. Is it the same as the gold on Sixth Avenue or Hatton Garden in old London Town?

Why is it that jewelers talk about CARAT weight in diamonds and gemstones, but also use the term KARAT when it comes to the quality of gold. Are they the same thing?

We will certainly be looking into that term in an upcoming article. You see, gold (this does not apply in quite the same magnitude for silver or platinum items) comes in more than one color and more than one quality.

You have the typical yellow gold, a green gold, the ever popular white gold which is currently making a bit of a comeback, and the sought after 'rose gold,' fashionable in Victorian and vintage jewelry.

Each of these will have a different price structure when it comes to appraising your jewelry. Nothing dramatic, but a difference anyway.

Yet the bottom line could add several hundreds of dollars to a bracelet or ring, so you will need to know how to spot these distinctions in metal.

So how do you do it? By using the best tools a valuer can possess (your eyes) while employing the greatest skills you can learn (how to measure things). Once you have these handy little methods in your arsenal, the rest is just a matter of arithmetic.

Proceed to Part 2 of this mini-course, Types of Valuation Appraisals, where we'll reveal the single most important consideration when it comes to valuing ANY jewelry.

Author David Foard, a Fellow of the Gemological Association of Australia (F.G.A.A.) and former member of The Valuers Council (JATVC), is retired ("Ha..." he laughs). He is working harder now than at any time in his life, especially over the 30 years he spent in the Antique Jewelry Trade as a qualified gemologist and member of the Valuers Council. Now he concentrates on the "three R's" of Readin', Ritin', and Re-ritin' articles, courses and free report newsletters at his Online Jewelry Appraisal Center website.

David says, "All of the calculations and procedures done throughout this series of articles are built into our Online Jewelry Valuation Self Appraisal Kit, which does all the work for you. Why? So you don't have to. Simple...

"If you are really serious about getting a jewelry valuation appraisal done quickly and easily, then go to our Online Jewelry Valuation Self Appraisal Kit to value your own jewelry and reproduce a certificate on your own printer at home or work. Couldn't be any easier.

"Our online jewelry valuation self appraisal kit uses behind-the-scenes calculations that work with your answers to a set of multiple choice questions to derive exactly 'What's it worth'. Easy, eh? We use this system ourselves.

"Regards, and please watch the road."

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