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Common Myths About Jewellery Valuations
There are some very common misconceptions about jewellery valuations which we are going explain in this blog.
The first myth is valuations are easy and anyone can do them, this can not be further from the truth. Jewellery evaluators need to have specialist knowledge, not only in the materials needed to construct them but also what their experience tells them it would sell for. There needs to be particular attention paid when putting these values on a piece of jewellery, this is because a piece of jewellery is an asset which needs to be evaluated accurately.
With all that was said about the first myth not all valuations are the same this all depends on the knowledge and experience of the valuer. Which market is it being sold at and the type of sale for example retail, auction and private sale. These factors will all change the valutaion of the piece.
The next myth is that family pieces are valuable, many believe this to be true because the piece is old of there is some sort of sentimental value. Many times if the piece is old it is out of style which means it is undesirable. When a value if put on a piece the sentimental value is not going top be taken into consideration.
Does jewellery always appreciate in value? The short answer in no, there are so many variables that need to be considered for a valuation these include the price of metal, market conditions, exchange rate at the time and many more there are too many to be listed.
A valuation is not what the piece is worth, a valuation is what it would cost to replace new for old or like for like. A valuation does not mean there is someone out there willing to pay that price.
A valuation can be made without seeing the piece, this is false as no matter how well a piece is described or even how good the quality of the photo is there are things that can be seen like they are in person. This can include marks in the metal, fractured stones and the quality of the stones, the last point is most important as it can lead to significant increases or decreases in value.
Sellers that give valuation certificates are not all they seem, many sellers will display a valuation certificate which shows an inflated valuation compared to purchase price. This is a sales tool, they do this to make the purchaser believe they got a bargain. After all if the value is double what they are selling for why are the selling it for half it's value? Things are not always what they seem.
Hopefully after reading this article you have a much better idea of how valuations work. They are a tool which can be handy when purchasing but you need to do your own research before accepting a figure.