Appraising Your Appraiser: My tips for ensuring an accurate evaluation of your jewelry
This guide was inspired by my recent short series "The Terrifying Tale of the Appalling Appraisal" (Part 1 and Part 2)
First things first, I do want to start this post with a disclaimer. Despite our cheeky horror story series, please do not assume that all appraisers are shady or incompetent. As with most niche areas of expertise, a vast majority of appraisers are honest and will do the job to the best of their abilities. Don't let a few rotten apples stop you from enjoying a delicious appraiser pie!
Tip 1 - Figure out what type of appraisal you need
Wait, what? You can get different types of appraisals?! How does that work?
Fair Market Value
The Fair Market Value (FMV) is essentially how much your item would be worth in its current condition should it be sold in the general market. The FMV is not necessarily the amount that you paid for the piece. Instead, imagine your jewelry is a car and you have standard insurance. If you get into an accident, the insurance company will typically pay out the current value of a similar car on the market (same make and model, similar mileage, same year, etc.).
Replacement Value
The Replacement Value reflects the cost to reproduce your piece using new materials. This value may be higher than the FMV since it takes into account the cost of labor to recreate the lost item and the retail fees associated with new pieces. This is probably the most common appraisal for jewelry insurance purposes, but the premium may be higher than it would be using the FMV.
Liquidation Value
This is fairly rare for formal appraisals, but you've likely encountered it if you've ever approached a jeweler about selling your jewelry. The Liquidation Value is the closeout sale amount for your jewelry - how much you could get for it if you needed to sell RIGHT NOW. Usually it reflects the melt value of the metals and the wholesale cost of any gemstones and does not factor in the goldsmith labor or retail overhead.
"Scrap" gold jewelry. Courtesy of Midwest Refiners.
Tip 2 - Find the right appraiser
Okay, I admit this one is a bit broad. The point is that an appraiser is not one-size-fits-all - you need to do some research to find the best person for the job. But what should you be looking for?
Qualifications
As a Gemological Institute of America (GIA) alumnus, I would recommend looking for someone with a Graduate Gemologist (GG) diploma as it is considered the gold standard for gemological education in the industry. BUT DON'T STOP THERE. The science of gemology is constantly changing with new discoveries and treatments that may not have existed when your appraiser took their classes. Bob may have gotten his GG in '73, but has he kept up with the latest news and developments? What has he done to stay relevant?
Once we've established their gemological credentials, we still must ensure that they know how to perform an appraisal. Unfortunately, there is no federal or independent entity that acts as a governing body to determine who is and isn't a qualified appraiser. Most experienced appraisers will belong to a trusted organization like the National Association of Jewelry Appraisers, and if they are you can verify their membership easily.
You may find that you need an appraiser that specializes in a particular type of jewelry or appraisal. Antiques pieces or jewelry allegedly from a prestigious brand name designer, for example, will require an expert eye to properly identify and value.
Customer Recommendations
The jewelry industry relies heavily on word-of-mouth, so ask around! Do you have any family, friends, coworkers, neighbors, etc. who have gotten appraisals? If you have a trusted local jeweler, feel free to ask if they would recommend someone. Look for reviews online as well, though take everything you read with a grain of salt. People are much more likely to leave a negative review than a positive one, so don't let a lack of reviews put you off.
A special note on in-house appraisers - do not discount them entirely but be aware that there may be some biases involved. The great thing about using an in-house appraiser is that they have all of the information about the piece at their fingertips. However, they also may be motivated to appraise the piece at the retail value (or higher). I know it can be exciting when you buy a Zales ring for $500 and they hand you a certificate stating that it is worth $1,500...but that so-called certificate is only suitable for use as emergency toilet paper. Ask them about their methods (see tip 3 below), and if you feel like you are being sold a pat on the head then look elsewhere.
Tip 3 - Ask about their process
This is perhaps my most important tip and also the one that is most often overlooked. By nature, we assume that professionals have a greater understanding of their field of knowledge than we do and thus must know what they are doing. However, since the appraisal industry is largely unregulated it means that there are no strict guidelines in place that dictate exactly how such an evaluation must be performed. So here are a few quick questions you can ask to help ascertain their skills.
What tests do you perform to identify the gemstones?
One of the lessons that they drilled into us at the GIA was to NEVER sight identify a gemstone. All gemstones should be identified using proper gemological equipment (a skilled gemstone appraiser should at minimum have access to a microscope, refractometer, polariscope, dichroscope, and handheld spectroscope). It may walk like a garnet, talk like a garnet, and even quack like a garnet (don't ask), but it could actually be a garnet-and-glass doublet.
A small arsenal. Courtesy of Trudy Gems.
Beyond simply identifying the gem material, certain gems in particular will also need to be evaluated for treatments or synthetics. Diamonds, sapphires, rubies, and emeralds in particular can vary dramatically in value based upon these factors and should always be closely examined for signs of treatment and potential synthetic origin.
A good appraiser knows their limitations. While many treatments and synthetic variations of gemstones can be identified with standard gemological testing, some will require a closer examination by a reputable laboratory. Sadly we cannot all afford to have a trusty Raman spectroscope or electron probe micro-analyzer in our basements, so you may need to send your gems out for further testing. I would recommend having a laboratory report on any gemstones that approach the five figure mark or higher anyway as they can make the insurance claim process much smoother.
I examined this gorgeous sapphire cut by u/shinyprecious and could not find a single inclusion that would definitively indicate if it was natural or synthetic - the only potential clue was some faint color banding. I determined it was likely natural and untreated but recommended that he send it to GIA for more thorough testing. (I was correct, but I wouldn't have staked my reputation on an educated guess!)
How do you evaluate the mounting?
Your ring has two stamps: "9k" and "Tiffani and Company". No need to look any closer, right? Except an experienced appraiser would immediately be suspicious to find a piece from a fine jewelry house in such a low karat of gold (and a non-standard karat for an American piece as well)...not to mention the tiny little issue of the misspelled brand name.
They aren't fooling anyone with this shoddy craftsmanship. Courtesy of Ruby Lane
This is an obvious example to demonstrate the point, but not every fake will be so easily identified. All metals should be tested for type and purity regardless of whether they have a stamp, and any makers marks should be cross-referenced for authenticity. A skilled appraiser should also have a working knowledge of different jewelry periods and what styles and methods were used to determine if the item is original, has been repaired/modified, or if it is a modern piece designed to appear older. I highly recommend also checking out this guide from Lang Antiques' Antique Jewelry University page - it is chock-full of amazing information about identifying antique and vintage jewelry.
Can I see some past appraisals?
If you forget everything else I've mentioned so far, I hope you will at least remember this tip. A past or sample appraisal is a treasure trove of information about the skill of your appraiser. The more details that they include in their reports the better. Here are some specific items you might look for:
They have clear photographs of the piece (ideally taken from multiple angles)
They include the carat weight (or estimated carat weight for set stones) of all gems along with their measurements (may also be estimated if the setting obscures the stone)
They indicate if the stones are natural or synthetic and specify which tests were used to make that determination (if the stones have a report from a trusted laboratory the details and report number should also be included)
They disclose the presence of any potential treatments - in the case where they believe that a stone is untreated but do not have a lab report they may say something like "no indications of heating/treatment"
They detail the cut style, color, and condition of all present gemstones
They detail the type and quality of the metal in the mounting as well as its measurements, weight, and the setting style(s)
They include any stamps, makers marks, visible repairs/replacements and current condition/damage
An example of a detailed jewelry appraisal. Courtesy of Alex Gulko Custom Jewelry
