If you own jewellery—whether it was purchased, gifted, or inherited—you may not be fully aware of its current valuation.
In addition to the maintenance and safety measures for jewellery, people also receive important advice about its valuation from their friends and family. On one hand, many people will tell you that you only need to get the jewellery valuations done once. Others assume that getting the valuation done only makes sense when you plan to sell the jewellery, whether on the open market or at an auction. Another common belief is that the old valuation is considered “good enough.”
So, as a common person, so many recommendations sound disastrous, especially when most of them turn out to be wrong, and you might then be stuck around the question regarding “what’s actually true?”
This article clears up all doubts and myths about jewellery and its value. Even in today’s times, there are several myths, and it is extremely important to stay literate regarding what a few of the most common jewellery valuation myths are. We have debunked the myths and replaced them with reliable facts so you can make an informed decision.
Let’s now begin with the myths that are prevalent and the facts that one needs to know in that regard.
Myth 1: Jewellery Valuation Is Only Needed If You’re Selling
The truth is that if you have jewellery to sell, you must have it appraised. “Selling” is just one reason to get a valuation; it’s not the only or most important one. There are several reasons for which valuation becomes the most important thing that needs to be done, and a few of them have been listed below.
In reality, most jewellery valuations are carried out for:
- Insurance cover
- Estate planning
- Probate or inheritance purposes
- Asset documentation
- Peace of mind
If your jewellery is lost, stolen, or damaged in an unfortunate incident and you do not have the documents supporting its current valuation, the likelihood of your insurance claims becoming complicated and ultimately rejected is extremely high. A professional appraisal ensures your jewellery is properly documented and financially protected, even if you never plan to sell it.
Myth 2: An Old Jewellery Appraisal Is Still Valid
The truth is: Most of the time, the jewellery’s value changes with the passage of time, and at times, just like in the past few months, it has changed significantly. If you lack the current valuation documents, you may never settle the claims. Old valuation is just as useless as no valuation in any circumstances.
Several reasons justify the need for a new valuation, primarily due to market fluctuations. Gold prices rise and fall. Diamond demand shifts. Usually, over a period of years, even the craftsmanship value changes, and all these things collectively add up to the change in the overall valuation.
When discussing the process of getting a valuation, several questions arise, with the most common being, “Ideally, in how many years should we get the valuation done?”So, a quick answer to this question is that most often it is recommended to update a jewellery appraisal every 2–3 years, which is beneficial, especially for high-value or bespoke pieces. When you keep the valuations current, it helps to ensure that:
- You’re not underinsured.
- Your documentation reflects today’s market.
- Insurers have up-to-date information if you ever need to claim.
If you delay in completing the valuation and it becomes outdated, it often exposes you to financial risk.
Myth 3: Jewellery Appraisal Is Just About the Stone Size
The truth: carat weight plays an important role, but the total valuation is influenced by several factors, and most often it is the metal that plays the major role. Apart from the metal and gemstone, there are several other factors that add up to the updated total value of the jewellery.
A professional jewellery appraisal takes several factors into account, including:
- Gemstone cut, colour, and clarity
- Quality and type of precious metal
- Craftsmanship and setting
- Design complexity
- Condition and wear
- Current market demand
In the case of bespoke jewellery in London, craftsmanship and design play an extremely important role because no two designs are the same; therefore, a significant emphasis is placed on the overall workmanship, which can greatly affect the overall value of the jewellery.
Summing Up
To sum up, we have fact-checked the myths listed above. But, apart from this, there are several others. One needs to be vigilant and ignore unsolicited advice; if you own jewellery, it is crucial to get it valued as soon as possible and then revalued every 2–3 years.
