Whether it is for insurance purposes or your own piece of mind, it is wise to get your diamond appraised. It is best practice to get an appraisal as soon as you purchase your diamond just in case your ring becomes damaged, lost, or stolen. An appraisal validates the value of your investment by assessing your grading report.
Now you’re probably asking yourself, “If I have the grading report and original receipt, why would I need an appraisal?” Well, I am glad I am here to help you out. There are three reasons for this.
Grading Report vs. Appraisal
A grading report tells you everything about the diamond in the ring ONLY. An appraisal takes into consideration other factors that may add or subtract value to your investment. After all, a ring also has a metal band, and may even contain other types of stones.
Secondly, a grading report is usually given to you by the jeweler that you purchased your ring from. They are the ones charging you for this ring, so they have an invested interest in the grade of your gem. Taking your ring to a different gemologist for your appraisal will give you unbiased valuation of your stone.
Lastly, an appraisal is a necessary step if you are looking to claim your ring for insurance purposes. This is definitely needed if you want a scheduled policy on just your diamond. However, if you include your diamond in a homeowner’s insurance claim, an appraisal is still needed.
What Happens During an Appraisal?
Appraisers cross-check all the characteristics that are outlined in your diamond’s grading report. These are known as the “4C’s.” The color, cut, clarity, and carat of your ring are assessed and given an overall valuation.
Here is how the 4C’s are evaluated during an appraisal:
- Color. It is general rule of thumb that the less color present in your diamond, the more valuable it is. If a yellow tint is present in your diamond, then the gem’s worth decreases. A diamond’s color is graded on a scale from D (the highest) to Z (the lowest).
- Clarity. Appraisers check how visible the natural imperfections (also known as “inclusions”) are in your diamond. Gemologists perform this task under 10X magnification. If imperfections are not seen under these conditions, they are not considered visual inclusions.
- Cut. There are three variables taken into consideration when it comes to cut. First, gemologists find the table percentage (width/diameter) and depth percentage (height) of the diamond. These values are compared to dimensions of over stones that are deemed “desirable.” Next, the shape of the diamond is taken into consideration. Once all proportions are confirmed, gemologists can properly evaluate the cut.
- Carat. This is the weight of the diamond. Typically, the higher the carat, the greater the value of your gem.
Okay, My Diamond Is Appraised. Now What?
You should now have a piece of mind, knowing that you (HOPEFULLY) weren’t ripped off by your jeweler. You are also free to get your gem insured now.
Speaking of insurance, appraised value correlates with the cost to get your stone replaced. In other words, the insurance company determines the max they are willing to pay based on the appraisal. So you are not guaranteed this value if you are to lose or damage your stone.