July 6, 2009
Need It, Want It, Gotta Gotta Have It
Now that you own something worth caring about – let’s say a diamond engagement ring – you want to have a record of what it is and what it would cost to replace it, should something dreadful happen to it. Something dreadful includes leaving it on the sink in the ladies room of the club last night or leaving it next to your bed and someone (uninvited) visits your home and takes it while you’re at work!! There’s a lot of sentiment and love attached to the ring that no other ring will replace; however, you can get another similar diamond, if you know what you had to begin with!
Simply put, you need an appraisal! A document which describes the diamond and the ring along with an estimate of how much it will cost to replace it – today. This kind of document can be generated by the jeweler who sells you the ring, or it can be produced by an independent appraiser of jewelry. These two documents might even have different values. Why? That’s another story…
If the seller generates the report, usually it’s a statement of how much it would cost you to buy it again – at that store. Technically, it’s called a Statement of Replacement Cost. But, what if you want to replace it from someone else? What if you move? What if that jeweler goes out of business? An Appraisal reports on the cost to replace it – anywhere in your market area – by researching the market and learning what similar items cost at a number of different stores.
Which is better? For most purchases, the seller can generate the Statement of Replacement Cost for you and you can use that document to obtain insurance coverage or just keep for your records. However, describing your ring as “One diamond ring, 1.00 carat, good quality” is not enough information to identify the diamond or to replace it with “like kind and quality”. How much information is enough? Tomorrow… Dii
July 3, 2009
Put It In Writing Please
Now that you own a “piece of the rock” – whether it’s gold, platinum, a diamond or color gemstone, you should think about protecting it against loss. There is insurance available – just like you insure your furniture or car. But, you need some documentation before handing over the premium.
This documentation has been collectively called an appraisal. There are some technical differences to the title of this document, depending on who sold the item to you and who’s writing the document. But let’s discuss why you need this first.
The description and value of your item, let’s say a diamond ring, is your assurance that first, the ring is yours, and second, exactly what kind and quality of diamond ring you own. The value is what you would have to pay to replace it – sometimes the same amount as the price you paid, but not always. (See May 18th post).
You deserve a complete description of your ring, even if you don’t intend to insure it. If you have a loss, such as a burglary, you have a record of the ring being yours! If you have a picture, it’s even better. If the description is thorough, as it would be on a professional appraisal, it will contain identifying information that could help prove it’s yours when it’s found. That’s the best.
Sales receipts are usually vague and rarely include a photograph of the item. With your next fine jewelry purchase, ask if the jeweler will provide a document with a full description of the item which is suitable for insurance. This is called a Statement of Replacement Cost. (This is not an appraisal. More on that next week). The information should describe the identity, measurements, weight, and quality of any gemstones as well as the metal and design of the mounting. This document should be in writing – well, printing – as in printers. And, it should be on the jeweler’s or appraiser’s letterhead. And, it should be signed! Please!! …Dii
June 16, 2009
It’s Who You Know
If you don’t know your diamond, know your jeweler. That’s sound advice. Jewelers are not required to take classes, pass exams, or know their product in any way. Anyone can hang a shingle, put inventory in a showcase (some don’t even pay for it until it’s sold), and ring a cash register. It’s amazing how many jewelers don’t know beans about carats.
And with all the diamond “Certs” out there, you’d think it wouldn’t matter. But it does – BIG time! Just because a laboratory prints a grade on a piece of laminated paper doesn’t guarantee it’s accurate information – much less complete information that helps determine the value of the diamond. Or even that the diamond and the “cert” go together!!
It’s the jeweler’s responsibility to stand behind the diamond and they must know diamond identification and grading in order to look you in the eye and disclose all the pertinent information that establishes trust and value in your diamond. So where do you find a jeweler with this knowledge and ethic? Look for their education credentials – their continuing education effort – and their reputation in the community. Ask a friend for a recommendation. You might ask the jeweler for references – but don’t be put off if they hesitate to give you names. Jewelry is a private purchase and ethical jewelers will only give out names of customers that have given permission to do so.
Professional credentials are important to us all. I want a certified auto mechanic for my Mitsubishi Spyder. I want a CPA to help with my taxes. And I want my Doctor to keep up with the latest research on diseases or surgical procedures. Ask your jeweler for his or her credentials. Are they members of the American Gem Society (AGS)? This membership is earned, not given out with dues. And you earn it EVERY year! It’s not always what you know – it’s who you know. Tomorrow – lasers!! …Dii
