[Jewelry making - Article 00600] - Re: [Orchid] Valuation of jewelry for a divorce settlement

[Kevin P. Kelly]

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    Why a piece of jewelry needs a valuation varies: Fair Market value
    (what the piece might sell for in a jewelry store); Distress Sale
    Value (any circumstance where one is forced to sell). I.e.: divorce,
    but no matter what one thinks of one's 'ex'; it doesn't effect the
    value. 

    Ultimately the true value is "auction value"; what someone is
    willing to pay in the market place. 

    It is very simple, in most cases to value diamond jewelry because so
    many diamonds are sold every day. The principle value to consider is
    the value of the stone. 

    If it's simply metal, check commodity prices. 
    The variables might be if a piece is designed by a well known
    jeweler/ designer or if the stone is unusual. So, if there's a stone
    that's the major component in the valuation. 

    The overriding principle is comparables. 
    An analogy would be real estate. if you're selling a house you look
    for a similar house that's for sale; same number of rooms, baths,
    acreage, location, etc. Then factor in variables. 

    Often I read "go to a GG". A GG should be able to identify the stone
    and the metal. But not always. 

    Example: a customer of mine took an 18KY ring with an opal from a
    place called Mintabie. I cut the stone from rough that I had
    purchased. The GG told my customer that the stone was not an opal or
    that it was man-made. He/she could have said I don't know. GG
    training (my wife is a GG) trains one to ID stones; but putting a
    price on the stone is another matter entirely. 

    The person who knows the value is one who sells many pieces of
    similar jewelry or stones. I participate in many "art fairs" all
    retail. A frequent question is "how much is my ring worth?" 

    Someone sees that I have some inlay opal jewelry and that person
    bought an opal inlay ring on a cruise. I try to explain why it's so
    difficult to put a price on their ring. Their eyes roll; they don't
    want to hear that. "Just tell me the price!" I do tell the person if
    they're willing to pay for the appraisal they can leave the ring with
    me and I will appraise it. More often than not the person wants to
    know that they haven't been "ripped off" 

    A Graduate Gemmologist has been trained to identify stones; not to
    put a value on either a stone or a piece of jewelry. Not to say that
    a GG doesn't have enough 'real world' experience to place a value on
    a stone or piece of jewelry. It's just that that's not what they are
    trained to do. 

    HTH My caffeine level has seriously dropped. 

KPK
www.kevinpatrickkelly.com
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