Replacement cost appraisals, commonly referred to as insurance appraisals, are
designed to cover an individual in the event of loss of property, so these tend
to result in higher valuations for gemstones and jewelry, because they are
intended to provide coverage for replacement in a market that has fluctuating valuations.
Icgems.com provides for a 15-day inspection period, which allows ample time for
the customer to have an independent appraisal done, if the customer desires so.
Our experience has been that insurance appraisals typically result in a valuation
of our gemstones at 1,5 to 5 times the purchase price for the gemstone, if the appraiser
provides an unbiased and fair evaluation. If an appraisal is done by a third party
that has an interest in selling the Icgems.com customer gemstones, this could
introduce bias into the appraisal process.
To put it another way, if you were in the business of selling gemstones to your
customers, would you be likely to rave about what an excellent purchase bargain you
obtained by taking your business elsewhere? Icgems.com recommends that independent
appraisals be done by parties that have no interest in the outcome of the appraisal,
except for providing a fair and accurate assessment of gemstone value.
The jewelry appraiser should also be a Graduate Gemologist (GG) of the
Geological Institute of America (GIA), or an FGA of the Gemmological Institute
of Great Britain. A gemological degree grants assurance that the individual
can identify and grade gem materials. It does not, however, provide the training
necessary to be a proficient jewelry appraiser. Ideally, the appraiser should also
have a background in the jewelry market.
