Top 3 Reasons You Need to Update Your Jewelry Appraisal
- May 11, 2021
- Posted by: Digipraise
- Category: Protecting your Jewelry
Let’s begin with the big question: what is a jewelry appraisal update? Simply put, that’s when you take a previously executed jewelry appraisal, and a jewelry valuation expert uses the description and data to “update” the value of your piece using current market values and trends. This is important when you are trying to calculate the value of your estate or deciding the details of your insurance coverage. In the end, you want to protect and preserve your heirlooms and valuables for yourself and your family by making sure you have a recent valuation.
Let’s break it down. These are the top three reasons you need to update your jewelry appraisal:
Your item is most likely worth more now than when you purchased it. The prices of metals, gems and even brands fluctuate. For instance, the price of gold in October 2020 was $1879.90 per ounce – but in October 2015 it was $1250.87! That’s a fluctuation of over $629.03 in your favor. Another example – diamonds. This popular gem – over the last decade – has increased in value an average of four percent each year. This is why it’s so important to re-evaluate your jewelry using current market prices so your appraisal value is accurate.
Which brings us to reason number two – you want to make sure you are not underinsured. What if you insured your item for its purchase price and not its replacement cost value. Or, if you did insure it for the original suggested replacement cost value (appraisal value), but the cost today is 10% higher? On top of the pain of losing the beloved item, you now have the additional financial pain when you find out you were not insured enough to replace it with the same quality. The loss is emotional enough without dealing with that stress – a mistake that could end up costing you hundreds if not thousands of dollars. By adding a few pennies more a month to your insurance premium, you could have avoided the issue. Having the updated value will help you make the right decisions about your jewelry insurance premium.
It’s your responsibility. Most jewelry insurance providers recommend you update your appraisal every three years. Your due diligence is expected. Taking care of your keepsakes requires your time and attention. There are pieces that you cannot replace, like gifts from your great grandmother or the first piece of jewelry your partner gave you. These meaningful items need to be protected and the best way of doing that is to stay on top of their current value.
Final Thoughts: Make it a scheduled task
Updating your jewelry appraisal should be a scheduled task – it could save you from additional financial and emotional pain. Similar to taking in your car for maintenance every 6000 miles, you need to update your jewelry appraisal at least every three years. Take control now. Make sure you update any appraisals that are over 3 years old, and keep your documentation in a safe, secure place. If the unthinkable should happen, you will be so relieved that your appraisal value is current. You mitigate the financial risk and are in a better position to replace the item.
To sum up, your updated jewelry appraisal will reflect current market prices, allow you to update your insurance coverage, and show all interested parties that you are a responsible custodian of your estate.
Do you need to update your appraisal value?