Austin Jewelry Appraisers

1. Why should I get my jewelry appraised?
   There are 2 common reasons why people get their jewelry appraised. The first is for insurance purposes. Most insurance companies do offer some coverage (usually $1000) for jewelry in case of theft in a standard homeowners policy. There are a couple of ways to get full coverage for the value of your jewelry. For better coverage, insurance companies want an insurance appraisal of your pieces. This appraisal should be performed by an independent appraiser. The second common reason for appraising jewelry is if you are buying or selling pieces. This type of appraisal determines the Fair Market Value of the jewelry. Other reasons to get an appraisal include cash liquidation for a fast sale, for IRS purposes regarding estates, or to determine Fair Market Value for the distribution of the estate. For detailed information about appraisal purposes, see Markets Defined.

2. What is an independent appraiser?
   An independent appraiser acts as an impartial third party. The appraiser cannot act as a buyer or a seller of the piece, and can have no relationship with the pieces being appraised (or the parties involved). This assures you that the appraiser is being fair and impartial; that the pieces being appraised are not being artificially inflated or devalued. It is not the duty of the independent appraiser to determine whether you are getting a “good deal” or are getting “ripped off.” It is their job to determine the average “sales” price in the market.

3. Are there different types of appraisals? Which kind do I need?
   There are 2 basic types of appraisals- Insurance and Fair Market Value (FMV)
   Insurance- Insurance appraisals are used for insurance purposes, usually to increase the coverage on your jewelry. This purpose of this appraisal is generally twofold: the value that is given to your pieces is used to set your premiums, and the description is used in order to replace the piece if necessary. Because of this, it is very important that the descriptions be extremely detailed and specific as far as quality of manufacturing and gemstones.
   Fair Market Value (FMV)- Fair Market Value appraisals can be used for a variety of purposes, including cash liquidation, collateral, divorce settlement, investment, estate probate, and charitable contributions. The purpose of the appraisal determines the market that is used to calculate the value of your jewelry. The best way to determine which of these fair market appraisals are right for you, is to tell your appraiser what you intend to do with the piece, or the reason why you are looking to have it appraised.
4. So what do all of your qualifications mean to me?
   There are a lot of appraisers out there, and they aren’t all equal. Some appraisal designations require a lot more time and knowledge to earn than others.
   One of the most respected accreditation that a gems and jewelry appraiser can earn is the ASA Master Gemologist Appraiser. ASA requires that Master Gemologist Appraisers (MGA) reaccredit every 5 years to make sure that they stay current with new technologies and information. To stay current all MGAs must complete 100 hours of continuing education between reaccreditation. Reaccreditation also makes sure that the appraisers are still able to perform all of the functions involved in appraisal at the high standard of the ASA.
To become a MGA, they must be a Graduate Gemologist (GG) of GIA, have five years of full-time appraisal experience, and complete extensive exams that cover the full range of duties that appraisers are expected to perform.

5. Do I need to have my appraisals updated? How often?
   The Insurance Institute of America recommends that you have your jewelry appraisal updated every 2 years, Austin Jewelry Appraisers recommends every 3 years. This is flexible however, and many people update every 5 years. If you have jewelry that has large gemstones, especially diamonds, we do recommend that you update that appraisal more frequently than an appraisal for an all gold piece.

6. What is the difference between a grading report and an appraisal?
   A grading report or identification report are entirely about the gemological information of the stone. They do not attach a value, or indicate ownership of the stone. An appraisal evaluates the stone, and determines the value. Often the two are used in conjunction, since grading reports are used to determine the quality of the stone, while the appraisal translates that quality into value. This is especially useful when buying or selling a loose stone.