| If you were buying a classic car, you wouldn't go | | | | policies in the United States, the insurance |
| to the seller's mechanic to have the car checked. | | | | company has the option of replacing your |
| You'd take it to your own. Likewise, when you're | | | | merchandise or paying you cash for the amount it |
| buying expensive jewelry, you shouldn't just rely | | | | would cost them to replace it, whichever is lower; |
| on documents provided by the seller. You should | | | | don't expect to get cash for the value listed on |
| have it evaluated by an appraiser who is an | | | | an inflated appraisal. |
| unbiased third party and who has your interests in | | | | However, you don't want an undervalued appraisal |
| mind. Appraisals paid for by sellers are not | | | | either. There have been some cases where the |
| independent appraisals. | | | | insurance coverage has been voided by the |
| Four reasons for getting an independent jewelry | | | | company because of either undervalued of highly |
| appraisals are: | | | | inflated appraisals. Obtain a legitimate appraisal |
| 1. To verify the identity and quality of the gems, | | | | from a qualified independent appraiser and avoid |
| pearls and metals used. | | | | paying more than what you need to in premiums |
| 2. To get additional information about treatments, | | | | to the insurance company. |
| origin, and quality that the seller may not have | | | | The purpose of most appraisals is to obtain |
| known. | | | | insurance coverage. An insurance appraisal states |
| 3. To have a written third-party document that | | | | the value of replacing a piece; it doesn't establish |
| will be recognized by insurance companies. Many | | | | what you can gain in selling the piece. The type of |
| insurance companies do not recognize appraisals | | | | appraisal that gives you the immediate cash value |
| provided by the seller. | | | | of your gem or pearl jewelry is called liquidation |
| 4. To determine if you paid a fair price. It's best | | | | appraisal. If you're only interested in a verbal |
| to find this out from a professional appraiser who | | | | estimate of how much you van sell a piece for, |
| doesn't sell jewelry. Competing jewelers may | | | | you can usually find that out for free. Just go to |
| downgrade and under-appraise the merchandise | | | | some jewelers or dealers and ask them what |
| so they can afterwards sell you something else. | | | | they'll pay for the piece. But be aware that the |
| In addition, sellers may have a tendency to give | | | | price they offer you can be lower than what you |
| inflated appraisals. This can result in unnecessarily | | | | might obtain in a more competitive active market |
| high insurance premiums. For most insurance | | | | such as auction. |