Your Personal Valuation Equipment

Part 3 of the mini-course
"How to Value Your Jewelry
at Home or Work"

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

Let's have a quick reminder about our last session, Types of Valuation Appraisals. The other types of valuations were mentioned, and we could see how they stem from the "Master Valuation" figure. Once we have this as a basis to work from, we can confidently arrive at any of the other types.

We also covered briefly:

• Percentage markdown on other types.
  
• How second-hand values are arrived at.
  
• Why we need to tell items of jewelry apart.

This "markdown" depends on each individual. One dealer may be prepared to pay a little more than another, simply because they work at a lower profit margin, or they may have a shortage of stock in a particular category. Finally it may be because they have someone they can pass an item of jewelry on to quickly and without too much risk.

So here's what can we expect in today's tutorial:

• How the jewelry trade makes a profit.
  
• What equipment will we need to do a valuation.
  
• The information we must gather before we start.

Fundamentally it goes something like this:

The gold miner and the gem miner make a profit. The gem merchants and the bullion dealer make a profit. The manufacturers make a profit, and the wholesalers make a profit. The retailers make a profit - and then the government slaps a tax on it.

Gee whiz.

As each of these passes through the chain, the prices can double.

For example, a 4 gram 9 ct ring is dug out of the ground for around $10, refined and sold for $20, manufactured for say $40, wholesaled for $80 and then sold in the stores to the general public for approximately $160 plus tax.

Not bad, eh?

But wait... There's more.

(Note: Each of these markup profits are instantly calculated in the Online Jewelry Valuation Self Appraisal Kit so you arrive at a final figure knowing all prices are evaluated by design.)

To do our own appraisal, we are going to need certain equipment.

I can hear you all groaning now. Don't worry, I'm not going to suggest you spend thousands, or even hundreds of dollars just to do your own valuations. In fact, what I am going to suggest should cost no more than a few dollars, or nothing at all. Some of you may already have these items. Phew.

The most essential item is an eyeglass....

I'll say that once again just for emphasis, but loudly - CAN YOU HEAR ME?

THE MOST IMPORTANT ITEM IS AN EYEGLASS (LOUPE)....

This is actually the industry standard so we can't do anything without one.

After all, you wouldn't try to write without a pen, and if you wanted to fix your car, you'd need tools, right? Can't imagine anyone in the kitchen without plates, pots and knives. So why should valuing your precious jewelry be any different?

Okay, but what sort of eyeglass, and what else do we need?

A 10x times eyeglass, or loupe. Plastic is really good. Don't worry if you can't stick it in your eye like the trade do. That's just a convenience thing. Just hold it near your eye with your jewelry lying on a desk, table, or in your hand. Get in as close as you can and just look at everything. We'll show you what to look for as we progress.

Once you learn how easy it is, you'll never go without one. Honest.

Now I won't confuse you with "What do we want that for?" or "Do we really need that?" Just look around your garage, den or kitchen as we are sure you will have most of these items already.

They will be in the bottom of a drawer, or in that suitcase, or in a box, or in the kid's school stuff, but you might hear... "You can't have that, I'm using it..." - That's quite a common reaction.

Other items we suggest are:

• A white plastic or ceramic dish. I use a shallow soap dish.
  
• Hole gauge for measuring knitting needles in mm sizes.
  
• Child's magnet.
  
• Pencil style flashlight.
  
• Small compact mirror.
  
• A pair of school dividers (pointers) from a geometry set.
  
• While you're there check for any plastic hole templates.
  
• Ruler in millimeters. Sorry - inches just won't cut it.
  
• Kitchen scale which weighs in 1 gram increments.

This last item will be the most expensive, but the ones from Walmart or home electronic stores are around $39.95 - plus you'll be able to use it in the kitchen. Double bonus!

The brass style balances are even less, and can be bought from specialty tobacconist stores or craft markets. These can be very effective for weighing loose gemstones too.

We also suggest:

• An old toothbrush.
  
• Washing up liquid, and at the supermarket - cloudy ammonia.
  
• Toothpicks.
  
• Yellow or blue tack (great for Christmas decorations too).
  
• White business card.
  
• Desktop light, preferably quartz Halogen (I recently bought one for $9.95).

Oh yes, and also:

• A blank check with my name on it (just kidding).

Each of these will cost anywhere from just a few cents to under $10 bucks. If you're serious about valuing your own jewelry, this is a very basic kit. I wouldn't be without these. The eyeglass in particular is essential.

Proceed to Part 4 of this mini-course, The Importance of the Worksheet - where to get a valuation worksheet, what it means, and how to fill in the blanks before calculating. As a bonus I'll tell you where to get a blank one for free so you can use it again and again.

P.S. You can always get a Valuation Appraisal done quickly and easily with minimum effort by going to the Valuation Appraisal Centre at the address listed below and print your Certificate at home or work.

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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Return to Part 1 of this course, Jewelry Appraisal.

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