How is your jewelry valued?

How is your jewelry valued?

Jewelry valuation is very important proof of ownership if your jewelry is lost, stolen, damaged or any adverse thing that could happen. The jewelry might likely be recovered provided you have the valuation for your jewelry. Insurance companies mostly provide partial compensation for an expensive piece of jewelry but you can be assured that your major loss is recovered. Valuation is also an effective means of ensuring you receive a fair price if you sell your jewelry, provided the valuation is undertaken for that reason.

So, how is jewelry valued?
Determining the value of a piece of jewelry is done in two steps.

1. Identification:

In this stage each item of your jewelry will be carefully cleaned, photographed and weighed. The valuer then then identifies all of the metals and stones in your item before measuring and quality grading them.

 In the case of diamond, 8 different tests are carried out after cleaning.

  1. Synthetic diamond and artificial treatment detection
  2. Weighing
  3. Clarity testing
  4. Color testing
  5. Cut testing
  6. Fluorescence testing
  7. Re-cutting and polished potential evaluation
  8. Designer brand and provenance verification


2. Pricing

Once the identification process is completed, the valuer provides the corresponding market price quote. This market price quote is based on wholesale market transaction data for similar pieces at a given point in time. This data is collected is collected in a comprehensive database, which is updated every week and contains more than 100,000 different prices for various types of jewelry.

What are the key elements in determining the valuation price in the case of diamond?

Characteristics of the diamond: size, clarity, color, cut and fluorescence

Characteristics of the pieces's non-diamond components: metal weight/ composition and accompanying colored gemstones

Wear and damage: scratches, chips, internal cracks

Brand/ make/ provenance of the jewelry piece: for instance Tiffany, Cartier jewelry or jewelry having belonged to someone famous

Enhancements made to improve the appearance of gemstones: artificial enhancements such as HPHT, irradiation, fracture filling, drilling.