Hard times, hard facts

One of the great joys of working in retail jewellery is the feeling one is a participant in the most significant celebrations of our clients’ lives. Jewellery is linked to the owner’s emotions and can be a constant reminder of the happiest of times. Unfortunately, when circumstances change and our clients need to sell their jewellery, these same emotions can present a number of obstacles to the process. As an independent appraiser, the least enjoyable part of my job is deflating their emotional bubble with the cold, hard facts of the market value for used jewellery.

Our industry has worked tirelessly to create and reinforce a belief in the enduring value of gems and jewellery. The public has accepted as a given that their treasured family heirloom becomes more valuable with each generation. Many people believe their jewellery is an investment that never loses value. After all, the ‘replacement value’ seems to constantly increase when they have it appraised for insurance. These misguided beliefs are fed by a lack of understanding and perhaps a bit of wishful thinking. The truth is, for the vast majority of people, the only jewellery appraisal they have ever experienced was for scheduling insurance coverage, and many of those were ‘optimistic’ in their valuation. It is not surprising, then, that someone trying to sell a cherished, though 15-year-old ring, would have an inflated view of its value.

So, where do we, as appraisers, begin? It’s important we recognize that unlike an insurance appraisal client, people wanting to convert their jewellery into cash can have a wide range of motives for doing so. If we are to be of any assistance, we must be able to offer a variety of services, and not all of them will be appraisals. However, if you are required to comply with USPAP, or are claiming to comply with those standards, it’s important to understand how this organization defines the concept of ‘appraisal’ for personal property appraisers. It’s really pretty simple—if you are approached in your capacity as an appraiser and you offer an opinion of value or a range of values, you’re providing an appraisal, no matter what you call it on your pricelist. On the other hand, if you are acting exclusively as a broker or resale agent, it may be appropriate to offer a range of potential values as part of your consultation process.