Gemstone appraisals
We recommend that independent appraisals be done by parties that have no
interest in the outcome of the appraisal, except for providing a fair and accurate
assessment of gemstone value.
Overview
Gemstone values tend to increase over time, particularly top-quality gemstones, which are scarce and always in high demand.
Although values tend to increase over time, there can be some fluctuation in the appraised values of any particular gemstone. To a large degree, this fluctuation is due to:
- Supply and Demand
- Individual Subjectivity
- Type of Appraisal
Supply and Demand
Both supply and demand can contribute to gemstone value fluctuations.
If supply were to be interrupted (area and mine flooding, for example)
and demand remain constant, it could be expected that the value of such
a gemstone would increase significantly. The reverse could hold true as
well, such as a new mine and source located with abundant supply for a
gemstone that has previously been in scarce supply.
Individual Subjectivity
To an extent, the personal preferences of the appraiser can bear
on appraised value of a gemstone. Cut, color, clarity, and carat
weight essentially determine the desirability of a given gemstone
variety. The weighting of each of these four variables can be influenced
by preferences of the appraiser.
Type of Appraisal
Replacement cost appraisals, commonly referred to as insurance
appraisals, are designed to cover an individual in the event of loss
of property, so these tend to result in higher valuations for gemstones
and jewelry, because they are intended to provide coverage for replacement
in a market that has fluctuating valuations.
Fair market value appraisals, commonly referred to as estate appraisal,
are designed to verify a fair purchase price. The gemstone is evaluated
in its current condition taking into consideration its clarity,
color, rarity, size, weight, current fashion trends, etc.
Independent Appraisal
Echinastone.com provides a 15 days inspection period, which
allows you to have an independent appraisal done. We recommend
that independent appraisals be done by parties that have no interest
in the outcome of the appraisal, except for providing a fair and
accurate assessment of gemstone value. Our experience has been
that insurance appraisals typically result in a valuation of our
gemstones at 3 to 6 times the purchase price for the gemstone.
How do I select a jewelry appraiser?
There are many titles, some of which require extensive training,
and others with few if any requirements. Always ask what testing and
training the appraiser has undergone to achieve the title.
Some of the most respected accredited titles are: Accredited Senior
Appraiser (ASA) of the American Society of Appraisers. Their advanced designation in Gems and Jewelry is Master Gemologist Appraiser.
Designated Member of the International Society of Appraisers. Their
highest level of accreditation is CAPP (Certified Appraiser of Personal
Property).
The jewelry appraiser should also be a Graduate Gemologist (GG) of
the Geological Institute of America (GIA), or an FGA of the Gemmological Institute of Great Britain. A gemological degree grants assurance that
the individual can identify and grade gem materials. It does not, however, provide the training necessary to be a proficient jewelry appraiser.
Ideally, the appraiser should also have a background in the jewelry market.
American Society of Appraisers
The American Society of Appraisers is an organization of appraisal professionals. International
in structure, it is self-supporting and independent. The oldest and only
major appraisal organization representing all of the disciplines of
appraisal specialists, the society originated in 1936 and incorporated
in 1952.
The accredited American Society of Appraisers (ASA) gems and jewelry appraiser is uniquely qualified through training and experience to competently prepare appraisals of gemstones and jewelry. The insurance appraisals prepared by most retailers bear little resemblance to the documents prepared by ASA´s accredited appraisers and Master Gemologists Appraisers, who are professionally qualified to render appraisals for insurance, estate tax, equitable distribution, donation, dissolution of marriage, bankruptcy, sale and any other conceivable use. They are familiar with all levels of the jewelry marketplace and are trained in market research and analysis.
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