Harling's Jewellers - Insurance Services FAQ's

Appraisals are a legal document primarily used to establish ownership and to give a detailed description to your insurance company so that the item(s) can be insured against loss or theft.

There Are Many Different Types of Appraisals Covering Such Areas As:

Insurance

Divided into two categories, insurance appraisals can be either “Retail Value” which represents the price the average retail jeweller would sell a new item for, or “Replacement Value” which represents the cost of replacing or duplicating the item with one of exactly the same quality, manufacture and design.

Wholesale Value

Represents the price a retail jeweller expects to pay from a jewellery manufacturer or gemstone importer for items he expects to resell.

Auction Value

Represents the price jewellery is sold to the highest bidder at an auction. Actual realized prices may be used to determine appraisal values when an item is being valued for replacement or liquidation purposes.

Liquidation

Represents the cash price that may be expected when selling a jewellery item usually under duress and/or forced sale.

Fair Market Value

Represents the price at which an item would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Scrap Value

Represents the lowest monetary return and may also be referred to as the “Melt Value”.

There is no hard and fast rule when it comes to updating your appraisal. It’s important to remember that appraisal values are influenced by market conditions (i.e. exchange rates, precious metal spot prices and supply/demand in the industry). Therefore, always consult an appraiser to see if any changes in the market place affect the value of your jewellery. For example, if you own a heavy gold chain and the price of gold goes up or down substantially, it would be prudent to have your item re-appraised. On the other hand, if you own a diamond engagement ring, where the gold value is relatively insignificant to the overall value of the ring, it would be unnecessary to have the item re-evaluated.

Again, it’s important to deal with a qualified appraiser who will take the time to properly document the jewellery that you own. In the case of diamonds, it is wise to have an independent certificate from a recognized and competent Gemmological Laboratory (i.e. American Gem Society or the Gemological Institute of America). Not only will they use sophisticated gemmological equipment to analyze your diamond but they will also invariably laser inscribe a registration number on the girdle and plot any inclusions.

It’s important to ensure that any appraisal is performed by a qualified and experienced appraiser, and that he or she follows the appraisal guidelines set out by Jewellers Vigilance Canada and the Canadian Jewellers Association.