Estate Jewelry Value Guide
Section 6 Appraisals and Tips
Section 6 Appraisals and Tips
APPRAISALS:
One of the most confusing part of understanding jewelry
market values is the appraisal. Most appraisals
describe jewelry and give very high retail replacement
prices. The appraisal price is used for insurance
companies to replace the jewelry at Full Retail Prices, in
the case of damage or loss. The insurance premium is
based on these very high retail prices. In the case
of damage or loss, insurance companies typically offer
replacement at a jewelry store they work with or they will
pay you their “wholesale cost” of the
item. Their wholesale cost of the item is of course
much lower than the retail appraisal. They will
typically not pay these high retail prices if an item is
damaged or lost.
There is a different appraisal called an “estate value appraisal” or “market value appraisal” which states the actual cash market value. Prices on these types of appraisals are much less as they do not factor in labor or high retail mark up. These appraisals describe the item and give the current cash market value. An estate value appraisal must be specifically requested and only certain appraisers have the knowledge and experience needed to write such an appraisal.
If you currently have a Retail Appraisal that is sufficient for most people wanting to sell, just don’t expect the retail prices when selling. Think of the full retail price of an evening dress and then years later you want to sell the dress. The dress is used, it may have stains or damage and styles have changed. So there is no way to sell the used dress for the retail price paid when new. The same holds true for jewelry, except with jewelry the used value percentage is much higher due to the precious metals and gemstones.
If your estate includes a collection of high priced jewelry or precious items, you may certainly want to secure a “market value appraisal” also called an “estate value appraisal”. The same holds true if you have items that you inherited or have items you believe to have very high values and want a document that will give a written evaluation of the current cash market value. There is a cost for these types of appraisals and often a competent appraiser who is also a GIA gemologist will give you a free verbal opinion.
TIPS: Some of us have jewelry or precious items that we want to pass on to certain family members or share the proceeds between others. Most people have heard of the gift tax exemption and the estate tax exemption, but do not clearly understand it. Each person may gift up to $15,000 (cash or property value) per year to as many other people as they want without the need to file any form or pay any tax. So a couple can gift a total of $30,000 to as many people as they want, each year. The gift tax exemption has now been combined with estate tax and increased to $11,180,000 before any tax is due. So if you “gift” more than $15,000 to one person, there is still no tax, but it counts towards your lifetime exemption of $11,180,000. Then a form 709 needs to be filed with the IRS. That means that each US citizen may gift $11,180,000 during their entire lifetime and be exempt from any gift tax or estate tax, but gifts over $15,000 per year must be reported to the IRS with a form 709. IMPORTANT NOTE: I am not an accountant and am not offering any formal advise, check with your accountant or directly with the IRS to learn current tax laws and exemption amounts.
Through the decades I have helped many families and even insurance companies with jewelry estates. If you have certain pieces that you promised to certain family members or friends consider working with an attorney. Generate a document clearly affirming your wishes and eliminate issues in the future. One thing to consider… leaving heirs to divide jewelry or precious items on their own, or based on previous verbal discussions can be “very” problematic. Several may want the same piece, or the pieces may have vastly different values or meanings. I’ve literally seen this rip families apart. It is much easier and stress free for heirs to divide a cash amount.
Precious metals, diamonds and gemstones generally increases over time. Right now prices are very high. On rare occasions prices have spiked, and they have also fallen in the past. For example in January of 1980 the highest quality (D-IF) 1.00 carat round diamonds was nearly $60,000 and silver hit nearly $50 per ounce. But suddenly, out of nowhere, the bottom fell out and everything dropped like a rock to lower than it was before the spike. It took many months for prices to recover to pre spike amounts. The precious metal and gemstones market has mostly been steadily increasing since the early 80's. In summer of 2021 gold is $1,850, platinum is $1,100, silver is over $26, diamond prices are up and gemstone prices are up. We do not know what tomorrow will bring, but we do know that all precious metals, diamonds and gemstone prices are at very high levels right now.
You can check a GIA graduate gemologist alumni status directly with GIA. Go to WWW.GIA.EDU and go to GIA alumni search. Then enter the last name, city, state and the official GIA website will confirm the person and their diplomas.
There is a different appraisal called an “estate value appraisal” or “market value appraisal” which states the actual cash market value. Prices on these types of appraisals are much less as they do not factor in labor or high retail mark up. These appraisals describe the item and give the current cash market value. An estate value appraisal must be specifically requested and only certain appraisers have the knowledge and experience needed to write such an appraisal.
If you currently have a Retail Appraisal that is sufficient for most people wanting to sell, just don’t expect the retail prices when selling. Think of the full retail price of an evening dress and then years later you want to sell the dress. The dress is used, it may have stains or damage and styles have changed. So there is no way to sell the used dress for the retail price paid when new. The same holds true for jewelry, except with jewelry the used value percentage is much higher due to the precious metals and gemstones.
If your estate includes a collection of high priced jewelry or precious items, you may certainly want to secure a “market value appraisal” also called an “estate value appraisal”. The same holds true if you have items that you inherited or have items you believe to have very high values and want a document that will give a written evaluation of the current cash market value. There is a cost for these types of appraisals and often a competent appraiser who is also a GIA gemologist will give you a free verbal opinion.
TIPS: Some of us have jewelry or precious items that we want to pass on to certain family members or share the proceeds between others. Most people have heard of the gift tax exemption and the estate tax exemption, but do not clearly understand it. Each person may gift up to $15,000 (cash or property value) per year to as many other people as they want without the need to file any form or pay any tax. So a couple can gift a total of $30,000 to as many people as they want, each year. The gift tax exemption has now been combined with estate tax and increased to $11,180,000 before any tax is due. So if you “gift” more than $15,000 to one person, there is still no tax, but it counts towards your lifetime exemption of $11,180,000. Then a form 709 needs to be filed with the IRS. That means that each US citizen may gift $11,180,000 during their entire lifetime and be exempt from any gift tax or estate tax, but gifts over $15,000 per year must be reported to the IRS with a form 709. IMPORTANT NOTE: I am not an accountant and am not offering any formal advise, check with your accountant or directly with the IRS to learn current tax laws and exemption amounts.
Through the decades I have helped many families and even insurance companies with jewelry estates. If you have certain pieces that you promised to certain family members or friends consider working with an attorney. Generate a document clearly affirming your wishes and eliminate issues in the future. One thing to consider… leaving heirs to divide jewelry or precious items on their own, or based on previous verbal discussions can be “very” problematic. Several may want the same piece, or the pieces may have vastly different values or meanings. I’ve literally seen this rip families apart. It is much easier and stress free for heirs to divide a cash amount.
Precious metals, diamonds and gemstones generally increases over time. Right now prices are very high. On rare occasions prices have spiked, and they have also fallen in the past. For example in January of 1980 the highest quality (D-IF) 1.00 carat round diamonds was nearly $60,000 and silver hit nearly $50 per ounce. But suddenly, out of nowhere, the bottom fell out and everything dropped like a rock to lower than it was before the spike. It took many months for prices to recover to pre spike amounts. The precious metal and gemstones market has mostly been steadily increasing since the early 80's. In summer of 2021 gold is $1,850, platinum is $1,100, silver is over $26, diamond prices are up and gemstone prices are up. We do not know what tomorrow will bring, but we do know that all precious metals, diamonds and gemstone prices are at very high levels right now.
You can check a GIA graduate gemologist alumni status directly with GIA. Go to WWW.GIA.EDU and go to GIA alumni search. Then enter the last name, city, state and the official GIA website will confirm the person and their diplomas.
The best way to contact Lou is to
CLICK HERE
and tell us about your items for sale, or ask us a
question.
Free email consultation. Immediate payment via bank check, bank wire or certified bank check in most cases.
Click buttons below for the Estate Jewelry Guide sections.
Free email consultation. Immediate payment via bank check, bank wire or certified bank check in most cases.
Click buttons below for the Estate Jewelry Guide sections.
estate jewelry guide appraisal certificate
Are you ready to contact our Large Diamond
Buyer? Simply Click Here to contact us.
I will personally make sure you experience a safe, fair and confidential transaction. Thank you.
Privacy Policy
I will personally make sure you experience a safe, fair and confidential transaction. Thank you.
Privacy Policy
gemwin.com is a buyer of large diamonds of all shapes
and qualities. We are not endorsed nor affiliated
with The G.I.A. (Gemological Institute of
America) CLICK HERE for GIA's website. We are not endorsed nor affiliated with E.G.L.
(European Gemological Lab) CLICK HERE for EGL's website. We are not endorsed nor affiliated with AGS
(American Gem Society) CLICK HERE for the AGS website.
Copyright 2006 - 2023