Inexpensive jewellery insurance valuations, a genuine saving or false economy? Part 2.

In the second part of my inexpensive jewellery valuation series, we will take a visual look at the difference between them. You can view the first part here.

As the saying goes, a picture is worth a thousand words. So below is a comparison of two valuations. The first one was undertaken by someone with no formal valuation qualifications, while a member/fellow of the JVA produced the second.

I am not looking to use the first valuation as a stick to beat anyone with, far from it. It is also not my intention to cause embarrassment to the person who produced it, the company or the receiving client, which is why I have redacted critical aspects of that valuation.

However, it is my intention to highlight the differences in quality and detail between these two valuations and the risks associated with a valuation that is not fit for purpose.

Unqualified valuation

Key aspects that are missing from the unqualified valuation

A) The written description is nominal at best. There is no mention of the diamonds measurements, features, and proportions; all are key to establishing an accurate value and identifying the stone should it be recovered. There is also no mention as to the manufacturing method of the ring. If this ring were handmade, it would add several thousand pounds to the replacement value. There is no evidence or indication as to how they determined the metal was platinum.

B) The replacement value, there is no indication as to whether this is new or the second-hand value.

C) Missing pertinent information. This valuation lacks a date, bullion price and USD to the GBP exchange rate. These indicate the market conditions at the time and prove the item was in existence at the date of the appraisal.

Jewellery valuers association member/fellow valuation

Key aspects of the JVA valuation

B) Estimated measurements and weights based on the limited information from the unqualified valuation. These estimations were needed so that a new replacement value could be calculated and ascribed.
C) Pertinent information that would help confirm the approximate replacement value or aid in identification if recovered.
D) A digital image of the item, which aids in identification and proves existence at the appraisal date.
E) *Replacement value and the relevant replacement market
*The replacement value shown on the JVA valuation is the lowest value that you can prove based on the available data from the unqualified valuation. As you can see, even with the limited information, the replacement value on the unqualified valuation is £2,500 less. It is also possible that the replacement value is higher than £9,000, but the information available is too sparse to justify a higher figure.

The conclusion is that a jewellery or watch valuation is like any other professional service and should be carried out by someone suitably experienced and qualified to do so. The short term financial saving is no substitute for a fit for purpose valuation that would ensure that your settlement figure was accurate and justifiable.

Gareth Brown FGA, DGA, GIA-Pearls, CPAA, AJP, FJVA

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