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 Deborah Wieditz, is an Independent Certified Gemologist Appraiser and Graduate Gemologist with over 27 years of experience in the jewelry industry. Deborah is contracted by Cline Jewelers to perform appraisals for our clientele. She keeps current with all of the technical changes in the industry by attending GIA seminars and trade conferences. She is an Independent Certified Gemologist Appraiser with the American Gem Society, a Graduate Gemologist and member of the GIA Alumni Association and a Certified Member of the National Association of Jewelry Appraisers.
Types of Appraisals
People will need a jewelry appraisal for different reasons. The type of appraisal that is done will depend on the purpose the appraisal is used for. Below is a description of the different types of appraisals, their purposes and methods of valuation.
Insurance appraisals
This is the most commonly requested appraisal. Most people have a homeowner’s or renter’s insurance policy that limits the value of jewelry that is covered. In order to insure an item of greater value, a separate rider or “floater” policy must be issued. A jewelry appraisal is normally required for this type of policy. The appraisal should contain a detailed description of the mounting and the gemstones in the piece as well as a photo. The detailed description will aid the insurance company in replacement in case of loss and will also ensure that the owner receives an item of like quality. For these appraisals, the value stated will be either replacement cost new, (in the case of an item that can be readily repurchased) or replacement cost, used, (in the case of a piece of antique jewelry which would have to be replaced with an item of similar age, quality and type). Reproduction cost, new is a valuation that can also be requested and may be needed for a one-of-a-kind custom piece.
Estate appraisals
This is an appraisal that is required when establishing the value of an estate for tax purposes. Federal law requires that the valuation be established as the fair market value at the time of death. The use of the term “fair” does not in this instance mean “equitable” but rather is a reference to an old legal term referring to a “fair” or “market”. The valuation is hypothetical and is defined as the amount that a willing buyer, having complete knowledge of the item to be purchased, and not under any constraint to purchase, would pay a willing seller, having complete knowledge of the item to be sold, not under any constraint to sell and having ample time to sell the item in its most common marketplace. Comparable sales must be found and listed with the appraisal.
Charitable contribution appraisals
This is an appraisal that is required by the Internal Revenue Service when donating a piece of jewelry or gem to a charitable organization. The valuation required is the fair market value at the time of donation. (See Estate appraisals for fair market value definition.)
Market value appraisals
This is an appraisal that may be needed in the dissolution of a partnership or in distribution of an estate before death. Market value is often considerably less than the retail replacement cost. This is because the item being sold is “used” not new and the general public is leery of purchasing items that are not sold “new” in a jewelry store. The exception to this would be a unique designer item or an antique piece.
Hypothetical appraisals
This is an appraisal requested when an item has been lost or stolen without previous documentation as to its quality and value. These appraisals generally give a range of values based on the client’s description, photos and receipts. The fact that the original item was not able to be seen by the appraiser is noted in the appraisal.
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