Types of Valuation Appraisals

Part 2 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 assessment from our previous lesson, Jewelry Appraisal, which is Part 1 of this mini-course. We discussed several terms and demystified some of the jargon in use around the antique and jewelry trades. Thankfully, we will be able to continue in that fashion in order to make life easier for both of us (although there are some terms we can't avoid but which will be covered in detail).

This will be a real "hands-on" course unlike anything you've ever received before. It will be like looking over my shoulder as we go through the practical tests and measurements needed in jewelry valuations today.

We also covered briefly:

• What exactly is a Valuation or Appraisal.
  
• How jewelry from around the world can alter price.
  
• That you are the best "tool" you can ever have.

There was nothing complicated or scary in that last session; it was just a short introduction to the subject. We will be starting in earnest after today's seminar, as I plan to lead you through a practical valuation from start to finish.

It will be the best I can do to explain the procedures involved in valuing your own jewelry. This information will help you complete your own valuation (although there is a quicker and better way), but for now we'll stick with the program.

So what can we expect in today's tutorial?

• Types of valuation appraisals and how they apply to us.
  
• What is a "Master Valuation"?
  
• The importance of the correct description in jewelry.

As you know, all valuations stem from one type. The Valuation for Insurance, also known as a "Replacement for Insurance" appraisal, is the basis for all other types.

So what are they and how do we arrive at a final figure for them?

Start with the Valuation for Insurance (which we shall call the Master Valuation throughout this course) and use that as the basis for all other classes.

• Probate Valuations (the value of an item under a forced sale condition)

  An acceptable figure for gem set jewelry is 20 percent of the Master Valuation while "gold only" articles should be calculated from the "scrap" price.

  Ouch... That hurts!

  *HINT* - We will come back to gold, silver and platinum prices in a later article.

• Estate Division (on the execution of a will)

  This can lead to problems as the valuer must know if the items are to be sold - Probate Valuations for example - or handed down. This can obviously effect the final price.

• Private Sale (between two people)

  Usually a fair and reasonable Second-Hand value. This must be acceptable to both parties and is usually 60 percent of our Master Valuation price.

• Auction Reserve (on eBay or similar)

  Based on a time frame. If the seller is desperate, then a Probate Valuation applies, otherwise, if they are patient, 40 percent of the Master figure could be an acceptable price.

There are other Special Valuations beyond the scope of these lessons. Antique jewelry or Asian gold items for example. If you need to know more on these, a visit to the free information at the Jewelry Valuation Appraisal Center should steer you in the right direction.

Now we understand why pawn brokers, antique dealers or second-hand merchants have vastly different opinions as to "what it's worth".

From our perspective, and for the remainder of this course, we shall ONLY be discussing this 'Master Valuation' and how to arrive at a final figure.

So what is it and how do we get there?

Firstly this 'Master Valuation' must include the cost of gemstones (if any) and the "mount" as it is called. That is, the actual jewelry where stones are mounted. This could be a ring, bracelet, brooch, pendant in any style and category you could think of.

These mounts (they are still called that, even if they have no gemstones) are generally, but not always, made in precious metals.

It is our job, and the job of the Gemologist Valuer - or YOU in this case - to work out all the variables in simple order so anyone can follow, given basic training.

Fortunately, there is a special, yet simple tool for the job.

Which brings us to the final component of any GOOD valuation appraisal. And that is one of IDENTIFICATION.

Your description should be able to tell two similar pieces apart. For example:

If you have two engagement rings to value where one is set with a diamond, the other set with a cubic zirconia (CZ), you should have good descriptions to help ANYONE tell them one from another.

Your description MUST split them. Too many jewelers don't bother with this simple, overlooked practice. Why should we take the time to do this?

Because it's not ALWAYS about the price.

If you're ready, you can go on to Part 3 of this course, Your Personal Valuation Equipment, in which we consider the absolute minimum you must spend to do your own valuations at home. It's not as much as you think!

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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