MARKETS DEFINED Gems & Jewelry Markets Defined GEMS & JEWELRY MARKET DESCRIPTION Market 1...Cash Liquidation represents the subject gems or jewelry being sold to a dealer, wholesaler, competitive second hand dealer, jeweler, pawn shop or other significant buyer of second market gems and/or jewelry within one business day, plus normal shipping time if applicable. Market 2...Average Auction Liquidation represents Market 3B (auction retail) less the seller’s commission (10%-20%) and the buyer’s commission (10%-20%), both paid to the auction house. The resultant amount is the owner/consignor’s net proceeds less insurance and illustrations fees, usually no more than 2 to 3% of the net. Market 3A...Retail Merchant selling used or previously owned jewelry. This market requires first hand knowledge, as it is nearly impossible to monitor, due to the vagaries of the buying and selling of estate-type jewelry. When trackable and representative of “highest and best use” (most common market) this market can be appropriate for “Fair Market Value”. The valuation can range from Market 1 through Market 7. Market 3B...Average Auction Retail represents the average sales prices realized at major auction (including buyer’s commission) meeting the fair market value criteria. This is the “highest and best use” for provable sales of second market fine jewelry. This is also the primary market we look to for “Fair Market Value” described as “Comparable” Sales. Market 4...Average Wholesale represents the price at which wholesale dealers will sell an item to a retail dealer. GAA shows an average range for diamond and gemstone values in GemKey Market Monitor by Palmieri™. Market 5...Low Retail represents what some retail brokers, jewelers, wholesalers selling to the public, and semi-independent appraisers in highly competitive markets will sell gems and jewelry items for (see Market Analysis). insurance companies routinely buy jewelry to replace lost or stolen jewelry for insureds at this level. Market 6A...Actual Retail Replacement represents the most common price charged for the item by the seller/appraiser. This market can range from Market 5 through Market 7. This market cannot be used by a completely independent appraiser who does not engage in buying and selling. Market 6B...Average Retail represents the standard retail value realized for new merchandise as described in Market Analysis. This mark-up percentage varies according to the cost. Usually the lower the cost, the higher the mark-up percentage — the higher the cost, the lower the mark-up percentage. Market 7...High Retail represents the highest mark-up for some specialty jewelry stores, premier names or those in areas of weak competition. It also is often used by chain operations, certain mass marketers, and stores in high rent areas, i.e. malls, etc. This market can include rare items and items with special manufacturers provenance. ©1999 Gemological Appraisal Association - All Rights Reserved - Published with Permission Austin Jewelry Appraisers |