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GAA Gemological Appraisal Education
An appraisal is:
• A written statement, independently and impartially prepared by a qualified appraiser, setting forth an opinion of defined value of an adequately described property, as of a specific date supported by the presentation and analysis of relevant market information.
• An educated, informed objective opinion of value based on a stated purpose and function.
An appraisal is not:
• A verbal guess of price or cost on the basis of a cursory examination of an item or a digital photograph of an item.
• The paper that a jeweler may provide to you; is a statement of value. Their value.
When is an appraisal report needed?
When the owner of jewelry wishes to insure the replacement cost.
• To determine Actual Cash Value in the case of an insured loss. Casualty is loss allowed by the IRS as an income deduction for lost items not recoverable by insurance based upon documentation that establishes values for the lost articles.
• When an executor or trust officer requires a Fair Market Value for estate purposes whether to list the items in a taxable estate or for equitable distribution among heirs.
• In the case of divorce, the parties or attorneys may request an appraisal for the dissolution of commonly held property.
• A charitable donation appraisal is required if jewelry or gemstones are donated to a public institution, charity or museum IRS rules apply.
• Liquidation of assets.
“I'm thinking of selling some of my jewelry, can you help?”
• In order for us to be as objective as possible, we do not buy, sell or broker gems and jewelry but we can point you in the right direction for finding a buyer. We also can help you to determine Fair Market Value (FMV) of your jewelry in preparation for selling. The Restricted use appraisal report that we prepare will be meant for you, as the owner. It will help you decide whether or not you want to sell, as well as explain the value considerations that were taken into account when arriving at the dollar amount of the Fair Market Value of the pre-owned jewelry. The details of the jewelry or gems, or value considerations, may be used to explain to anyone what they are looking at during a transaction. However, do not make the mistake of handing over the report.
“I bought this diamond off of the Internet and I want to make sure that the “Certificate” is right and that I got what they said it was.”
• A written appraisal report is appropriate in this case to ease your mind. We would call this an “I'm worried” request for assurance. The report that you received is inappropriately called a “Cert” or “Certificate”. If the report is a GIA diamond report, it is a QUALITY report. GIA does not certify any diamond, it merely reports the quality considerations apparent in the cut, clarity, carat weight and color. It was included with your purchase to justify the price you paid for the diamond and it helps the seller avoid liability. With larger diamonds, a lab report is asked for by most insurance companies. Any gemologist can confirm or deny that the diamond matches the report and this should be done as quickly as possible so that you can return the diamond if you are not happy. You may want a verbal confirmation and not a complete written report and we can do that as well. The Internet is a good place to start shopping but be aware that you can't really see the diamond. The unique characteristics of diamonds cannot be conveyed with a picture on your screen and a group of parameters that may or may not mean anything to you. We firmly believe that beauty is highly subjective and cannot be quantified.
Is an appraisal a legal document?
An appraisal is not a legal document per se. However, it is admissible as evidence in certain types of court cases. Fiduciary responsibility varies from state to state. A written appraisal does support legal documents, insurance documents for example, and is frequently used in probate review of estates, divorces, bankruptcies and liquidations.
Is an appraisal a guarantee?
An appraisal document is not a guarantee. It is a written informed opinion backed up by experience, education and instrumentation. If it is conducted by an independent appraiser, it is the best evidence of an item's identity and value that can be obtained.
Can an appraisal or appraiser be “certified”?
In a word, no. While the words “certificate”, “certified appraisal”, “certified report”, and “certified appraiser” have slipped into the language of the jewelry industry, their use is incorrect and misleading. As the GIA explains clearly, “We have identified the following incorrect practices: 1) references to GIA Reports as “certificates”; and 2) the statement that students, graduates, their businesses, or particular gemstones are “certified” by GIA. The Gemological Institute of America does not certify anyone or anything. Neither a student nor a graduate who has been awarded a certificate or diploma, nor a gem which has been graded or identified by GIA has been “certified” by GIA.”
How do I know that an appraiser is qualified?
Ask questions! Anyone who is appraising jewelry should be able to tell you when they received their gemology degree, what professional appraisal association they belong to, and how long they have been appraising. Remember, you're the customer All of these questions can be introduced in casual conversation or you can conduct an interview prior to any commitment. You can also ask someone you trust for a referral.
Can a jeweler appraise my items?
A reliable appraisal is an independent, objective and qualified opinion of value. No person who is selling an item can be objective about that item's value. Your jeweler may be willing to appraise your jewelry but he or she is basing their appraisal on what they know in their business or store. They are not basing the appraisal on market research. There is also a problem with over valuing jewelry in order to make the retail customer feel they got a great deal from the jeweler. This often backfires because you may end up paying unnecessarily high insurance premiums. If this happens to you, ask the jeweler retailer if they are willing to buy back the jewelry for that amount before you leave the store!
How do I arrange for an appraisal?
Contact us. We’ll discuss your needs and arrange for a time and place to meet. If you do not live in greater Tampa Bay area, an appraisal can still easily be arranged, and the items delivered by courier. We have served a number of clients outside of my immediate geographic area and all work is done by appointment only.
How do you do an appraisal?
First we make an appointment convenient to you. Yes, we can work bank holidays and weekends but not without an appointment. We do not take ’drop ins’. All of our gemological equipment is portable, in case your attorney wants the work done in his office or your property is in a bank vault. We always take a few minutes to review the purpose and function of your appraisal needs and to separate out items that do not need to be included in your finished report. Then the inspection starts. If further research is necessary beyond the scope of our library and contacts, we will inform you at the start of our work. You are welcome to ask questions as we work. It's as much fun for us to teach you about what we do as it will be for you to learn more about your personal property. You will leave our office with your jewelry and the report. Payment is due upon receipt.
How do I get the items to you?
If we cannot conveniently meet, items can be sent by insured mail or courier (e.g. FedEx).
How do I avoid loss or damage to my jewelry in transit?
Items that are lost or damaged are covered by insurance, assuming that you properly insured the items before sending them. We certainly do not send anything back to you without insurance.
How long does an appraisal take?
That depends on how complicated the jewelry is or how many pieces there are to include in the report. We work quickly so that your time and our time are not wasted. If the items are highly unusual or one of a kind items, we spend more time in research and will justify it in our report. Normally, for one simple item, you can leave our office in 30 - 45 minutes.
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