Jewelry Appraisals are a confusing thing. Say for example
you bought a Diamond Engagement Ring that
retailed for $9000, and you paid $5000 for it. The Appraisal that the Jeweler gives you states it's worth $9000. (What it retailed for.)
Why are Jewelry Appraisals appraised at the Full Retail Value? Is there a need or a reason to appraise your Jewelry much higher than what you paid for it? Because that also means that
you're going to have to insure it for that $9000 price instead of what you paid. That's a big difference. Why?
The only real reason: Because it looks better on paper and it makes you feel better. You're going to think that Diamond Ring is worth a lot of money. You're going to think you got a really good deal. But the thing is, no one would ever pay that full $9000 for your ring. Why would they? You didn't!
Jewelry Appraisals list Clarity, Color, Carat Weight, Cut, a Detailed Description and of course the Retail Price. Is the Retail Price fraud? When you bought it did you think "Boy, I really got a good deal"? I've never been able to understand why Appraisals are marked up so high. You can't sell it for $9000. Even if you lose the ring or the ring gets stolen, Insurance Companies won't even pay $9000 for that ring. They'll get real cheap replacement values from local Jewelers and replace your ring... and chances are they'll pay less for your ring than you did. Why? Because Jewelers give Insurance Replacements a better deal because they bring them a lot of business. Isn't that crazy?
So what happens is, you're paying insurance for a $9000 ring that the Insurance Company will be able to get for $4000. Ha! What a rip off! Sad, but true. It sort of makes that Appraisal worthless. But then again, Insurance Companies insist on them. So what can you do?
Tell the Jeweler doing the appraisal to only list the value as what a true replacement value would be. (Plus a little bit more for taxes and inflation.) NOT the Retail price! That way you'll get enough money to cover your ring if it's stolen or lost and in the meantime, you don't pay some astronomical inflated Jewelry values for nothing.
That inflated Value may sound good. It may make you think you got a hell of a deal and a steal. But if you're paying more to insure your ring because of it's exaggerated price, then you really aren't saving any money now are you? Chances are, you'll pay more!
Have the Jeweler keep the listed Jewelry price down, that way you won't over pay with insurance costs and your Jewelry Appraisal will be accurate, fair and give you a better idea of what the true value of your Jewelry really is!
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Copyright © 06-02-2008 Jewelry-Secrets.com
