An appraisal is a document that describes an item, assesses its relative quality and assigns a value to it. Descriptions usually cover the visible, measurable and analyzable facts about the item (weight, materials, markings). Most jewelry appraisals also describe subjective features such as gemstone quality, relative rarity and overall quality of manufacture.

The majority of appraisals done today are for insurance replacement (retail replacement) purposes. The point of insurance is to return the value of the item. Therefore, insurance appraisals should reflect the realistic cost of replacing an item in a jewelry store that regularly sells the type of item being appraised.

Atlantic City Jewelry’s experienced retail jewelers have extensive formal appraisal training and are qualified to write insurance replacement appraisals for new sales or your existing collection.

Examination

Document

Formal Appraisal

Fair market value appraisals:
Reflect an actual selling price between a willing buyer and seller, when neither is compelled by time or need to buy or sell in the item’s most common market. Fair market value must represent the item’s value in its current (used) condition. Fair market value is generally required for charitable donations and estate appraisals. Fair market values may run lower than retail replacement values, because replacement values often reflect the cost to replace a used item with a new equivalent.

Immediate liquidation value appraisals:
Usually reflect low values because of the situations that create their need. Divorce settlements and some types of estate liquidations may require this type of appraisal, depending upon the jurisdiction where the scenario takes place. Less common types of appraisals include probate and loan collateral appraisals.

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