Getting a Gold Jewellery Appraisal
An appraisal is a written professional opinion of value for a stated purpose. Which purpose it is written for changes the number substantially.
An appraisal is a written, dated professional opinion of a piece's value for a stated purpose. The purpose matters enormously, because the same ring can be appraised at very different figures depending on whether the question is what it would cost to replace or what it would fetch if sold.
Key takeaways
- Replacement value and resale value are different numbers for the same piece.
- Insurers normally want replacement value.
- A proper appraisal describes the piece in enough detail to identify it.
- It should be signed, dated and state the appraiser's qualifications.
- Because value tracks the metal price, appraisals go stale.
What Vanhess does and does not do
Vanhess is a jewellery shop in Coquitlam, British Columbia. We sell solid gold jewellery. We do not sell bullion, bars, coins or wafers, we do not buy or broker investments, and we are not financial advisors, tax advisors or a bullion dealer. Everything on this page is general information to help you understand how gold is priced and valued. It is not financial, investment or tax advice. Speak to a licensed advisor or an accountant before making a decision about your money.
The types of value
| Type | The question it answers | Typically used for |
|---|---|---|
| Replacement value | What would it cost to buy an equivalent piece at retail today? | Insurance |
| Fair market value | What would a willing buyer pay a willing seller? | Estates, division of property, donations |
| Scrap or melt value | What is the metal alone worth? | Selling to a refiner or gold buyer |
Be careful
Do not be surprised when an insurance appraisal is far higher than what anyone will pay you for the piece. Replacement value is retail. Resale is not. Both figures can be correct at once.
What a proper appraisal contains
Enough detail to identify the specific piece: metal and karat, gram weight, measurements, a description of construction and any stones with their sizes and qualities, a photograph, the stated type of value, the date, and the appraiser's name and qualifications.
A one-line note saying gold ring, $2,000 is not an appraisal, and an insurer is entitled to reject it.
Preparing for the appointment
Bring what you have
Bring any original receipts, previous appraisals, certificates for stones, and the boxes if you still have them. Every piece of documentation reduces the amount the appraiser has to determine from scratch.
Expect the piece to be weighed, measured and tested. If you are asked to leave it for a period, get a detailed written receipt describing exactly what you handed over.
Frequently Asked Questions
How much does a jewellery appraisal cost?
It varies by appraiser and by how much work the piece requires. Some charge per item and some per hour. What you should be wary of is anyone charging a percentage of the appraised value, because that creates an obvious incentive to inflate the number.
Why is my insurance appraisal higher than what I could sell it for?
Because they answer different questions. Insurance appraisals state replacement value, which is what it would cost to buy an equivalent piece at retail today. Resale value is what a buyer would pay you, which is much closer to the metal value for most jewellery. Both figures can be correct simultaneously.
Who can appraise gold jewellery?
Look for a qualified appraiser with relevant credentials and no financial interest in buying the piece. Ask what qualifications they hold and what type of value the appraisal will state. A signed, dated document describing the piece in detail is what an insurer expects.
Does Vanhess do appraisals?
Yes, we provide written appraisals for insurance purposes from our Coquitlam shop. We are jewellers, not financial or tax advisors, and an appraisal is a statement of value for a stated purpose rather than investment advice.
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