Insurance Replacement Appraisal

A jewelry appraisal states the approximate price at which you could replace the jewelry with a similar piece of jewelry at a retail jewelry store, which sells jewelry of like quality . T he retail replacement value assigned diamond jewelry includes both the wholesaler's and the retailer jeweler's profits.

You should not expect to be able to sell your diamond jewelry for the appraised value, as the insurance value is usually significantly higher than the actual cash value. In fact, many times, insurance value appraisals issued at the time of jewelry purchase can be significantly higher than the original jewelry purchase price by as much as double.

The detailed information provided on a jewelry appraisal is helpful when selling a piece of diamond jewelry, yet the valuation is not. An appraisal is never an offer to buy unless specifically stated.

The relationship between price and value is often misunderstood. Price is an absolute fact, the actual sales price, while value is an expected dollar amount under abstract market conditions, usually inflated to make the purchaser feel better. Actual price paid is the evidence of true market value.

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