Im new here and not sure if im allowed to post questions about appraisals here but i just have a question about this appraisal. I have been appraising for about 20 yrs and a jeweler that i appraise for said i was too low. Just questioning if im out of date or not. Here is the description.
ladies 14k white gold diamond ring. The center diamond is round brilliant cut weighing approx. .26ct. Good cut. Clarity: VS1, Color: G. The ring also contains twenty-eight (28) bead set, full cut diamonds for a total weight of approx. .25ct. Ave. Clarity: SI2, Ave. Color: G-H. Total weight of ring 2.7 grams.
I put the value at $1875.00. Was i too low? Would love to here what other gemologists would appraise it for.. Thank you.
Still need to know what kind of appraisal you are writing. Is it Retail Replacement Value (typically used for Insurance) or is it something like a Resale appraisal (secondary market)?
Also, what kind of condition is the ring in? What is the style of the ring (important for resale purposes mostly)?
What were the value resources used?
If this is one of the first times your appraisal has been questioned in twenty years - I would feel that you are doing pretty good! Kudos!!!
Joined: Sun Dec 11, 2005 2:33 am Posts: 524 Location: East Coast
First Off, Welcome and Greetings Gem415
I could write a Doctoral Thesis just from the Question you posed to this forum.
An Appraiser needs to be constantly keeping their eyes and ears open in their Market Area and constantly be checking and asking questions to their local jewelers, bench workers to poll and correlate massive amounts of information so that your appraisals honestly reflect the values you have assigned to the item you are appraising.
Your appraisal should list YOUR “Approach to Value Statement”. How did you come to your Value Conclusions? What Methods did you use and more importantly what Methods DIDN'T you use. A. Cost Approach, B. Comparable Market Data Approach, C. Income Approach.
I personally use a Hybrid Approach which is a Combination of Both the Cost Approach and Comparable Approach. I also frequently Test My Valuation Theories and Practices using REAL WORLD Data It's not that hard to do and I like to recheck my facts, figures, and procedures once every 6-months using test subjects or practice appraisal workups on known items to verify that I'm still doing things right.
You have to build a working relationship with your local area jewelers and grain their trust and more importantly EARN their respect because when you do your job right then they will in-turn respect you and trust you. You would be surprised how EASY it is to Win Over Honest Ethical Jewelers if you are also Honest and Ethical as well.
I will try to write more later this weekend and I will see about showing you several examples using the information you have provided as an example to show you various outcomes using different data.
In the mean time you can check out some of the information and data I have already put together here at this Web Site that Barbra, Our Web Mistress has so graciously allowed me to have a small little area for all of my information for ANYONE to look over and use.
Joined: Sun Dec 11, 2005 2:33 am Posts: 524 Location: East Coast
Everyone else needs to be part of this learning session.
Don’t be a Silent Lurker become active and learn and speak up and ask questions as that is the only way any of us will ever learn and understand.
Please post your values but more importantly show your worksheet as to how you came to your value conclusions and why.
I’m hoping that this will all copy and paste and format the right way
My caveats and explanations will follow later
Prepared For: Ms. Jane A. Doe Date: 2/22/2014 123 Any Street Reno, Nevada
Item Ring - Lady's Diamond Ring Ring - Lady's Round Brilliant cut Diamond Ring The mounting is all white in color The shank is stamped 14K
Photos inserted here
Total Diamond Weight: 0.51 cts. Inspection Date, Location & Conditions: 2/22/2014, Dual Certified Gemological Laboratory - Home Office, Optimal Conditions but under time constraints Additional Inspection Comments: None
Weights & Measurements: Weight: 2.7 gms Scales Used: Ohaus C305-P Gram/Penny Weight Scale, State Certified Ring Size: ? ? Top of Mounting Measurements: ?.??mm X ?.??mm Shank, Top of shoulders: ?.??mm x ?.??mm Shank, Bottom of Ring Shank: ?.??mm x ?.??mm
Photographic Documentation: Top View: Yes Profile View: Yes Side View: Yes Back View: Yes Stamps & Markings: Yes
Mounting Attributes: Items Age and/or Period: Modern Condition: Good Primary Metal Content: 14K White Gold (585) Metal Tested: Visual Identification by Stamp Quality of Workmanship: Good (6) Quality of Major Stone Setting: Good (6) Quality of Melee Stone Setting: Good (6) Shank Outline: ? Shank Profile: ? Finish Primary Metal: Polished - Bright Setting Major Stone: 4-Prong Setting (Die-Struck) Setting Melee Stones: Bead Set Noticeable Repairs and/or Damage: None Metal Quality / Fineness Stamps: Yes - Maker’s Mark / Logo Stamps: Not Legible -
Diamond Melee Attributes Shape and cut: Round full cut Weight: 0.009 cts. each Number of diamonds: 28 Total Weight: 0.25 cts. Calculated - Mounted Clarity: SI-2 Color: G-H Proportions: Good Finish: Good Comments: Bead Set Diamond Attributes
Inspection Date: 2/22/2014
Nature of Origin: Natural Treatment: No Apparent Treatments Diamond Type: Undetermined / Not Tested Country of Origin: Unknown -
Shape and Cut: Round brilliant Branded Cut & Make: No
Measurements: Measurements: ?.?? x ?.?? x mm (actual) - Digital Diameter / Table Gage Depth Weight Adjustment Factor % 3% - Slightly thick
Weight: 0.26 Cts. Calculated - Mounted
Grades & Proportions: Weight: 0.26 Cts. Calculated - Mounted Cut Grade: Good (5 to 6) Cut Grading System Used: GIA - 2000 & Beyond Fluorescence – Long Wave: (0) None/Negligible Fluorescence – Short Wave: (0) None/Negligible U.V. Grading Environment: Fully Enclosed Lighting Environment Color Grade: G - Near Colorless Color Graded by: Cert. AGS 5-Stone Color Master Set, Straight Grade Color Grading Environment: GIA/GEM Diamond Lite Cabinet WITH U.V. Blocking Filter Clarity Grade: VS-1 Clarity Grading System Used: GIA
Other Attributes: Symmetry Grade: Good (5 to 6) Laser Inscription: None Girdle Surface: Frosted Girdle Thickness – Average: Slightly Thick Culet Size: None - Abraded Polish: Good (5 to 6)
Documentation of Photomicrographs, Digital Scans & Diamond Grading Reports:
Photomicrograph: (Top View) Yes AGS ASET Photomicrograph: Yes
Diamond Grading Report: None presented during examination and/or evaluation
Grading Preformed: Mounted Data Collected: Actual
*** Special Notation *** Data collected and reported may differ slightly from the appraiser’s grading report and the supplied lab reports. Such differences may include measurements, weights, grades and other notations. Slight differences are normal and common. Noticeable differences will be noted in (RED) in the appraiser’s grading report.
Total Approximate Replacement Value (New) Excluding Tax $1,930.00
One thousand nine hundred thirty dollars and no cents
Signature of Appraiser: ________________________________ La Shawn Bauer, G, G, GG, ASG/AGA, CGL/AGA, RMV, CM/NAJA
Now here is My Worksheet
Client Name: Ms. Jane A. Doe Item Number: 18 Examination Date: 2/22/2014 Item Total Weight: 2.7 gms. Item Type: Ring - Lady's Diamond Ring Description: Ring - Lady's Round Brilliant cut Diamond Ring The mounting is all white in color The shank is stamped 14K
Components
LSB - Mounting - Ring Weight: Scales Used: Ohaus C305-P Gram/Penny Weight Scale, State Certified Inspection Location: Dual Certified Gemological Laboratory - Home Office Inspection Location - Conditions: Optimal Conditions but under time constraints Inspection Location - Additional Comments: None Ring Size: ? Closed/Open Back/Gallery Work: ? Top of Mounting Measurements: ?.??mm X ?.??mm Shank Width & Thickness at Top: ?.??mm x ?.??mm Shank Width & Thickness at Bottom of Shank: ?.??mm x ?.??mm Length, Width, Thickness: Outside Diameter & Thickness: Inside Diameter & Thickness: Top View: Yes Profile View: Yes Side View: Yes Bottom View: Back View: Yes Stamps & Markings: Yes Laser Inscription: Items Age and/or Period: Modern Condition of the Item: Good Primary Metal Content: 14K White Gold (585) Secondary Metal Content: Accent Metal #1 Metal Content: Accent Metal #2 Metal Content: Accent Metal #3 Metal Content: Accent Metal #4 Metal Content: Metal content: Metal Tested: Visual Identification by Stamp Manufacturing Technique: Quality of Workmanship: Good (6) Quality of Major Stone Setting: Good (6) Quality of Melee Stone Setting: Good (6) Quality of Accent #1 Melee Stone Setting: Quality of Accent #2 Melee Stone Setting: Quality of Accent #3 Melee Stone Setting: Quality of Accent #4 Melee Stone Setting: Shank Profile: ? Shank Outline: ? Finish: Accent Finish: Primary Metal Finish: Polished - Bright Secondary Metal Finish: Accent #1 Metal Finish: Accent #2 Metal Finish: Accent #3 Metal Finish: Accent #4 Metal Finish: Enameling: Enamel Quality: Enameling - Condition: Setting: Setting Major Stone: 4-Prong Setting (Die-Struck) Setting Melee Stones: Bead Set Setting Melee Stones Accent #1: Setting Melee Stones Accent #2: Setting Melee Stones Accent #3: Setting Melee Stones Accent #4: Noticeable Repairs and/or Damage: None Metal Quality / Fineness Stamp Marks: Yes - Marker's Mark / Logo Stamp: Not Legible - Copyright / Trademark Stamps: Trademark: Designer: Manufacturer: Model Number / Name: Hallmarked: Sponsor: Year: Inside Ring Engraving: Engraving: Comments: Additional Comments:
LSB - Diamond Melee Shape and cut: Round full cut Weight from (cts.): 0.009 Weight to (cts.): WeightToText: Number of stones: 28 WeightCalc: .25 Total weight (cts.): 0.25 Weights are...: Calculated - Mounted Clarity: SI-2 Color: G-H Proportions: Good Finish: Good Comments: Bead Set Description: Diamond melle Round full cut SI-2 G-H 0.009 Melee data cache:
LSB - Diamond Mounted above 0.33ct Stone No.: Nature of Origin: Natural Treatment: No Apparent Treatments Diamond Type: Undetermined / Not Tested Country of Origin: Unknown - Shape and cut: Round brilliant Branded Cut & Make: No Length (mm): ?.?? Width (mm): ?.?? Depth (mm): Meas. are...: (actual) - Digital Diameter / Table Gage Depth Ratio: 0.00610 Weight adjust: 3% - Slightly thick Weight (cts.): 0.26 Weight is...: Calculated - Mounted Scales Used: Girdle Surface: Frosted Girdle Thickness (Average): Girdle Thickness - Average: Slightly Thick Laser Inscription: None Culet Size: None - Abraded Symmetry - Major: Symmetry - Minor: Polish: Good (5 to 6) Polish Comments: Shape Appeal: Length to Width Ratio: Proportion Grade: Symmetry Grade: Good (5 to 6) Cut Grade: Good (5 to 6) Cut Grading System Used: GIA - 2000 & Beyond Fluorescence (lw): (0) None/Negligible Fluorescence (sw): (0) None/Negligible U.V, Light & Grading Environment: Fully Enclosed Lighting Environment Color Grade: G - Near Colorless Color Grade by: Cert. AGS 5-Stone Color Master Set, Straight Grade Color Grading Light Environment: GIA/GEM Diamond Lite Cabinet WITH U.V. Blocking Filter Body Color: Fancy Color Grade: Fancy Color Grading System Used: Clarity Grade: VS-1 Clarity Grading System Used: GIA Diamond Grading Report: None presented during examination and/or evaluation Digital Proportion Scan: Photomicrograph: Yes Photomicrograph of Laser Inscription: AGS ASET Photomicrograph: Yes Brilliant Scope Photomicrograph: Ideal Scope Photomicrograph: Hearts & Arrows Photomicrograph: Gem Print: Plot Diagram: Plot: Grading Preformed: Mounted Data Collected: Actual Comments: Description: Diamond Round brilliant VS-1 G - Near Colorless
Appraisers Notes:
Commentary:
Valuation Valuation Descriptor: Approximate Replacement Value (New)
Gems Description Weight Units $/Unit +/- % Markup % Unit Total Diamond melle Round full cut SI-2 G-H 0.009 0.25 cts. 700.00 0% 125% $395.00 Diamond Round brilliant VS-1 G - Near Colorless 0.26 cts. 1,650.00 0% 125% $965.00
Mounting Net Weight Units $/Unit Cost 2.598 gms. 145.00 $375.00 * (* indicates calculated value was overridden.)
Additional Mounting Costs Description Cost Setting - Melee Side Stones $140.00 Setting - Center Stone $50.00
Markedup Values Value Description Markup % Cost Total Marked Up Total Of Individually Marked Up Gems $1,360.00 Total Of Individually Marked Up Mounting 0 $565.00 $0.00 Total Of Other Marked Up Values 0 $565.00 $565.00
Sub Total: $1,930.00 Tax Rate: 0.00% Tax: $0.00 Total: $1,930.00
I'll post more later
I want to see other post their results and worksheets as well
_________________ High Sierra Gem Lab La Shawn Bauer, G, G, GG, ASG/AGA, CGL/AGA, CGL/IJO, CDG/IJO, RMV, CM/NAJA
Coming Soon:
Bauer Gemological Products
From Simple Minds, comes Simple Answers & Even Simpler Solutions
Joined: Sun Dec 11, 2005 2:33 am Posts: 524 Location: East Coast
Greetings One & All and Gem415
I feel comfortable with the Hypothetical Value I listed as an example with the limited amount of information you supplied.
There are lots and lots of factors that can cause and change the Sample Value to be Higher or Lower
The General Economic State of your General Area which can be 0-Neutral or + or – Factor on a scale of 1 to 5 showing a Strong, Neutral or Weak Economy in your area and also as a country or even global Scale.
How many competitors are in your Market Area and how many are Top Tier Competitors with a Brand Name Following or a No Name, Off-Main Street Dealer/Seller.
That is why it is Vitally Important to Poll and Test and Survey YOUR Market Area and see what other are selling similar items for.
Remember, Tag Price and Actual Transaction Price MAY NOT be the same as some Business use a Discount off Tag Price Business Model where other Businesses have a NO Haggle, NO Discount Pricing. The Price is the Price no matter who you are.
The various Mark-Up Values can vary as well as that can be sectioned into various Pricing Tiers. The more Expensive the Item’s Cost is, the Lower the Mark-Up Percentage is.
Many, many Years ago Anna Miller published a guideline Mark-Up Value Percentage Chart in her first Book. I used that Price/Value Percentage Tier System and then re-did it to fit my own Survey results within My Market Area and then adjusted it to fit my needs that reflex the Current Market and I Re-Test and Adjust those Figures and Percentages Twice a year at minimum.
I not only use the Daily Precious Metals Markets but I regularly check with local area jewelers to see what they are charging per gram or per penny weight for Casting and/or Fabricating jewelry items. This is even more important than just posted Published Precious Metal Market Prices and then adding a set mark-up value.
Setting and Labor Charges SHOULD NOT be overlooked because Bench Jewelers don’t work for FREE and don’t be fooled just because an Item has been manufactured in China they pass the savings on down the line to the end-user the consumers because in most cases they don’t. Everyone should be using and looking at David Geller’s Shop Manual Pricing Guide as that gives you a very important look into how the back-end of a jewelry store works and what they are charging the consumer.
Remember PROFIT is not a Dirty Word, unless you are the one not making a Profit.
I also use both the Gem Guide and Rapport Diamond Pricing Guides as well as I can see two different viewpoints. I also check with numerous diamond dealers online as I have passwords and access to their Wholesale Prices and complete inventory online so I can also check Whole prices from another point of view as well.
I use a complex Cost Approach Method so that I can Mark-up Each Individual Component separately Mounting Melee Stones Main Stones Labor and Setting Addition Labor Additional components This way some items can have a Higher or lower Mark-Up Percentage compared to other items.
What I have been seeing lately is that since everyone (Consumer) has been looking at various Retail On-Line Diamond Prices Jewelers are now having to compete with On-Line Prices and so they make up a little bit by charging a little bit more on their mountings and melee stones and labor.
Also consumers are slowly learning that On-line services aren’t so good when it come to Customer Service because now they have to FedEx their jewelry cross-country to have it worked on and that becomes a hassle and pain along with shipping and insurance both ways can rack up some serious bucks as well.
Anyway Hope this helps
_________________ High Sierra Gem Lab La Shawn Bauer, G, G, GG, ASG/AGA, CGL/AGA, CGL/IJO, CDG/IJO, RMV, CM/NAJA
Coming Soon:
Bauer Gemological Products
From Simple Minds, comes Simple Answers & Even Simpler Solutions
Thanks so much for the replies. I know that i was kind of general info, I should of posted a picture also. I was just trying to get ballpark prices for an insurance appraisal. After all these years I didnt want to be wrong. lol.
Joined: Mon Oct 17, 2005 11:10 am Posts: 299 Location: Illinois
What? you charge for appraisals? Just kidding. I work for several stores in the Midwest. I would call that appraisal a pretty routine piece and the stores would charge between 60.00 to 100.00 for the piece. They all know what the other guys charge (they just pick up the phone and call). Some charge less as a traffic building tool and some charge more because they believe that their reputation demands that they be on the high side. They charge by the hour is when it is more complicated and they would lose money by doing it by the piece. It all works out the same. I could comfortably do two appraisals like the example per hour, so it's not hard to figure out.
_________________ I love the smell of Methylene Iodide in the morning...
Joined: Sun Oct 16, 2005 12:22 pm Posts: 21602 Location: San Francisco
I'd charge $100 to do it. It would take me 45 minutes to document (cause I try to involve the client in everything I'm doing) and then another 1/2 hour to format.
If the piece had side stones, the charge would be $150.
Joined: Sat Oct 18, 2014 8:17 am Posts: 2 Location: Sydney, Australia
La Shawn, your work is priceless I have been reading all your posts and educational material, it's a tremendous help for anyone starting out in the appraisal business.
What? you charge for appraisals? Just kidding. I work for several stores in the Midwest. I would call that appraisal a pretty routine piece and the stores would charge between 60.00 to 100.00 for the piece. They all know what the other guys charge (they just pick up the phone and call). Some charge less as a traffic building tool and some charge more because they believe that their reputation demands that they be on the high side. They charge by the hour is when it is more complicated and they would lose money by doing it by the piece. It all works out the same. I could comfortably do two appraisals like the example per hour, so it's not hard to figure out.
anyone know of a good person in Raleigh, NC to do appraisals? The person I used to go to retired.
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