Buying a piece of diamond jewellery can give you instant happiness and great excitement. But have you thought about its insurance? Are you aware of the diamond’s appraisal value? Are these questions scaring you? Well, no need to panic. We have got your back. Here is our guide on everything you need to know about diamond appraisal value.
What is diamond appraisal value?
An appraisal is a document that gives a detailed description of your diamond. Certified appraisers perform diamond appraisals. Diamond appraisal value contains key characteristics of a diamond like carat, clarity, color and cut.
Basically, a diamond appraisal helps you in knowing your diamond’s value. An appraisal contains all the relevant information about your diamond.
It is necessary to understand in detail what a diamond appraisal is for and its value. The most important benefit of diamond appraisal is to estimate the value of the diamond for insurance purposes. Appraisal value is an inflated reflection of the retail value of the diamond. If your diamond gets lost, damaged or stolen, you can cover it under insurance that includes diamond appraisal.
Why is a diamond appraisal value needed?
A diamond appraisal is necessary for the following reasons:
- Insurance purposes in order to cover risks for loss, theft or damage.
- Re – selling of diamond
- Tax purposes
Appraisal confirms the value of the diamonds.It protects both the buyer and the seller.
Hence, diamond appraisal is important.
Types of diamond appraisal values
There are three types of appraisal values:
- Replacement value appraisal – It suggests the cost to replace the diamond with something similar to the current market price.
- Comparable replacement value appraisal – It does the same but for items no longer available. You can use it for antiques.
- Fair market value appraisal – It is based on what price the buyer and seller agree upon. You can use it for tax and legal purposes.
Diamond ring appraised value calculator
Before buying or selling your diamond ring, it is necessary to know its value. You can do it with the help of a diamond value calculator. A Diamond calculator is an essential tool which works as a guideline of value for diamonds. It is important for you to know the diamond appraisal value. There are many factors that determine pricing of your diamond ring. Let’s discuss some of them:
- Carat – Carat defines the diamond’s weight. The heavier the diamond, the greater is its value. You can find small stones of high clarity and color very easily when compared to larger stones. A high carat diamond is harder to find and it has a greater value. The heavier the diamond, the more valuable it is.
- Color – Diamond’s color is also an important factor in determining its value. You can grade the color on a scale from D – Z against a standardized daylight. Diamonds that are D, E and F are colorless or white. G – L are off – white. M – Z are a bit yellow. Diamonds that surpass Z are fancy diamonds. Now. the closer to D the diamond is, the rarer and more expensive it is. G or H diamond is also close to being colorless or white. Therefore, the more colorless your diamond, more is its value.
- Clarity – Clarity is related to the number of flaws or inclusions in your diamond. You can grade the clarity on a scale. Fewer flaws mean a more valuable diamond. You can assess clarity according to the size, color, position or the number of inclusions of the diamond.
- Cut – Cut of the diamond deals with the angles that determine how much it sparkles. There are five cut grades. A properly cut diamond allows light to refract and produces a great sparkle. If the diamond is cut too deep or shallow, light will escape through the bottom. It will give a dull appearance at the top. Therefore, diamonds which reflect more and have more sparkle are graded higher on cut.
Diamond ring value vs appraisal
Do you think that the value for your diamond ring and its appraisal are the same? Well, that’s not true. Given below are some points of difference between a diamond appraisal value and grading value:
- A diamond appraisal is quite different from the value that is supported by a grading certificate. Let us discuss them one by one.
- Diamond appraisal is the process of assigning money value to your diamond for a specific purpose like insurance or tax.
- Diamond grading, on the other hand, is the evaluation of the diamond and its attributes like carat, cut, clarity and color. It is performed in renowned gemological laboratories like GIA by certified professionals. Unlike the professionals at lab grading entities, appraisers don’t have access to all necessary equipment.
- In a grading lab, professionals work for a single company. In case of appraisals, professionals can operate independently or with a jewellery company.
Diamond ring appraisal vs resale value
You can associate two terms with the value of diamond. They are appraisal value and diamond resale value. However, they have different purposes. You want to know about both the values for your ring? Well, we are here to help you. We have defined the basic concepts related to these values. Please have a look:
Appraisal value – An appraisal document will provide you a detailed description and corresponding value for your ring. You can use it for insurance purposes or when you feel like selling your ring. Insurance companies will use this document to issue a policy for your ring.
So, if you lose your diamond, you can cover it with insurance. Appraisal value will tell you the worth of your diamond. It is always a bit higher than retail purchase price. But the appraisal value cannot reflect the true resale value of your diamond.
Resale value -Your diamond ring’s resale value is the value which you use for reselling purposes. This amount is what the buyer is ready to pay for your diamond. You can determine the resale value by comparing the price of similar diamonds attributes in the wholesale market.
Be aware of the existing prices of similar diamonds if you are planning to sell your ring. You also need to keep in mind that the diamond resale price is always below the retail price.
Appraisal value of diamond ring
Appraisal value for your ring is quite important. It will help you know if your ring’s value is near to what you paid for it. It will also help you insure your ring. We suggest you get your diamond ring appraisal as early as possible. This way, you can insure it immediately. Since the cost of diamonds rises over time, we suggest an appraisal every five years.
Where to get your ring appraised?
1.There are different places where you can have the appraisal value for your ring or any other diamond jewellery. Almost, all jewellery stores offer appraisals. You can have your jewellery appraised in front of you.
2.You can also go to an independent diamond jewellery appraiser. But be very careful while choosing an independent appraiser. Please, keep in mind the following points:
- Be sure that the appraiser is credentialed and has an educational background in gemology.
- Ask the appraiser to conduct the appraisal in front of you. It will help you keep a check on your ring.
3.It will be better that you choose a gemologist appraiser. He/She is well trained in gemology and appraisal techniques. He/She will give you an unbiased analysis and valuation for your diamond.
4.You can also pick a trustworthy and professional appraiser from GIA’s list of appraisal associations.
Cost of diamond appraisal
Generally, appraisal services cost may vary depending on the type of your jewellery. Now, there are certain points you need to consider before the appraisal service:
- Appraisers that charge less than others can be your convenient option. But be careful of someone who charges very little. It may mean that they are inexperienced.
- Reliable appraisers charge a flat rate based on time. They don’t charge based on the percentage of the jewellery’s value. This makes sure that they offer unbiased information about your diamond’s worth.
Valuation of ring while appraisal
Appraisers take into consideration a range of factors to calculate the value of a diamond. Here are some of them:
- To value your diamond, the appraiser will look at the quality of your diamond. The higher its quality, higher its valuation. A large, flawless, colorless and well cut diamond always has more value. Appraisal will carefully examine the 4Cs – color, clarity, carat and cut.
- Appraiser will also check the metal value of the setting. He will look at the value of the metal used to produce your ring setting in order to determine its value.
- Factors like the ring’s brand name and place of manufacture also determine your ring’s value.
We hope, now, you are aware of the importance of diamond appraisals. Make sure to have an appraisal for your jewellery. Keep in mind all the relevant points mentioned above before having a diamond appraisal.
It depends on the number of items. On an average, it takes one week to get the diamond appraisal.
Almost all jewellery shops can provide you appraisal for your diamond ring. You can also go to an individual diamond jewellery appraiser.
Jewelers often buy diamonds at wholesale prices which are quite low. Since they can get diamonds at cheaper rates, they don’t see any reason to pay more for your diamond. Therefore, the resale value is lesser than retail value.
You can sell your jewellery to local shops. You can compare the prices offered for your jewelry by different jewellers and then make the best choice.