Whiteflash-Diamond Playground

“Replacement value” for a piece of jewelry isn’t a fixed price. An appraised valuation is simply a snapshot of what that professional estimates the piece to be worth at ‘X’ time in ‘Y’ market. A piece of jewelry will be priced differently at a strip mall in East LA than it will at a ski shop in Aspen.

We operate in a competitive market with low markups on the internet. If our clients were to purchase similar quality goods from a B&M boutique they would cost considerably more. With over 95% of jewelry still being purchased in retail stores the appraisers doing our verification letters assign values relative to that majority market. Along with our invoice (which reflects the lower internet markup) our clients have some flexibility when securing insurance: Not all insurance carriers allow the consumer to work with their jeweler of choice, so providing the letter of verification with higher price point allows them to replace the item virtually anywhere in case of catastrophe.

Independent appraisers differ. Some estimate value according to whatever market the piece was purchased in - and may examine the seller’s invoice to do this but most still base their valuation on pricing at average retail stores. With the transparency the internet brings there are now appraisers who provide three separate valuations for their clients; one based on internet pricing, a second based on average retail and a third based on upscale retail. We are in favor of this approach, as it gives the consumer more flexibility when securing insurance.