When you bring a piece of jewelry into a jeweler to have it appraised, you may not realize that there are different types of jewelry appraisals. As such, the jeweler you select for the appraisal needs to know what type of appraisal you are having done, and needs to know how to complete that appraisal correctly. Here are some of the most common types of jewelry appraisals and how they vary from other types of jewelry appraisals.
A Donation Appraisal
If you donate a piece of jewelry to a non-profit organization, you can use the donation as a tax write-off. This can be a good way to get rid of an old engagement ring or wedding ring from an ex-husband, or pass along pieces of heirloom jewelry that do not interest you. However, if the jewelry has a fair market value of more than $5,000, you must get a donation appraisal to write that amount off on your taxes. The jeweler must complete the donation appraisal and you will need to submit this with your filing to claim your deduction.
An Estate Appraisal
If your mother has passed away and left her jewelry to you and your siblings, there are many reasons why you may need to have an estate appraisal done on the jewelry. An estate appraisal can help you determine which pieces of jewelry are made with real gems and what value each piece has. This appraisal can also help you evenly divide up the jewelry among the siblings, or help determine how much one person will have to give to the others to keep a piece of jewelry that is sentimental to them.
An Insurance Appraisal
If you have a valuable piece of jewelry, you may wish to insure that piece of jewelry. Typically, homeowners insurance, fire insurance, flood insurance and moving insurance only insure a minimal amount of personal goods. The amount typically is not very high, and should something of great value be taken, such as jewelry, the insurance payout would not cover enough to purchase a similar item. This is why insuring high-value items separately is advised. An insurance jewelry appraisal details exactly what your jewelry item is, what its value is, what flaws it has and what its current, fair market value is. Pictures are also taken of the item.
A Loan Appraisal
If you need money, you may be able to take out a loan using jewelry as collateral. In most cases, your jewelry will be held by the company who is loaning you the money until the loan is paid back in full. When one of these loans is conducted, a loan appraisal will be done. The person issuing you the loan is required to carry enough insurance to cover all of the jewelry they have loans out for in the event of theft, fire or other losses. The loan appraisal is very similar to an insurance appraisal, except that the appraisal is being done for the person who loaned you the money, rather than for you personally.
A Point of Sale Appraisal
The last common type of jewelry appraisal that is done is a point of sale appraisal. The point of sale appraisal can be done for two reasons. First, it helps ensure you that the piece of jewelry you are buying is what the jeweler claims it is and that is worth the amount of money that they are selling it for. Secondly, the point of sale appraisal can be used for an insurance policy on the piece of jewelry until you have time to get an actual insurance appraisal done on the piece.
Not all jewelry appraisals are the same. The type of forms, pictures and tax paperwork that may be needed vary based on the type of appraisal being done. And not all jewelers offer or know how to properly do all appraisal types. Learning about the different types will help you better to understand the process and help you find a jeweler who knows how to do the type of appraisal you need. For more information, contact a company like The Gold Miner.
