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Get A Fair Value For Your Diamond Ring: Appraisal Guide

by Willyou.net * Aug 17, 2021

Key Takeaways

  • Ring appraisals are primarily used for the purposes of taking out an insurance policy. As a result, it’s not uncommon for the ring’s value to be overestimated, since insurers could charge a premium.
  • The best person to appraise the value of your ring is a reputable local jeweler. While there are some online entities offering this service, the risks associated with mailing your ring off to some unknown premises are too high, even if you intend to sell it.
  • Most rings lose some value immediately after purchase, but this is true of most significant investments.
  • Your GIA diamond report is not the same as an appraisal of value.
louping round gold engagement ring and wedding ring

Beyond the beauty, brilliance, and breath-taking appearance of any diamond ring, we need to know something far more pragmatic: its numerical value. Whether for insurance purposes, or for us to know what their resale value might be, this number comprises a large part of what a diamond ring really is.

When it comes to calculating the value of your diamond ring for insurance purposes, getting it professionally appraised is vital. The diamond and the setting both carry separate values, but they need to be calculated together – along with a couple less obvious qualities, such as the ring’s original maker, and the craftsmanship behind any intricate features – in order to create a comprehensive picture for the insurer.

What Does ‘Ring Appraisal’ Mean?

A ring appraisal refers to one of a number of processes used to assign value to a diamond ring. The appraiser’s findings will be detailed on an official document, which can be given to an insurer as proof of value.

In the past, it was standard practice for appraisers to inflate the ring’s true value by up to 100%, meaning that the ring’s owner would presume it was worth far more than it really was – and, for insurers, that they were able to charge a premium on insurance policies.

These days, however – and provided you go to a reputable jewelry store with an accredited appraiser on hand to book consultations – you’re likely to get a more

How do You Determine The Value of a Diamond Ring?

It is vital you bring your diamond ring to a trusted, local jeweler – one you can trust to give an honest appraisal of the quality of the diamond, and the ring itself.

The diamond will probably be the first thing they look at. The jeweler will want to carefully check the diamond’s cut, clarity, color, and carat weight – just as they did when the diamond was initially sold to you – in order to determine its value separate from the ring.

Similarly, they will appraise the setting – the precious metals used within it, as well as any additional gemstones set around the diamond itself – and, of course, any brand ‘signatures’ engraved onto the inside of the band.

They will then add these two valuations together to create a comprehensive valuation for the entire ring.

How Much Does it Cost to Get a Diamond Ring Appraised?

Different jewelers will have their own way of costing appraisals, but we recommend opting for one offering a flat rate of around $75 – $150.

Why go for flat rate? While some jewelers price their appraisals depending on the value of the ring, we would recommend one that prefers to charge all their customers the same price, in order to ensure you’re getting the most accurate result possible. Take it as a sign of a highly reputable jeweler.

Can I Sell A Ring for its Appraised Value?

That depends on who conducted the appraisal. Some jewelers will still inflate the price or, alternatively, shoot too low as a way of encouraging you to buy from them instead.

The world of fine jewelry is complex, and the average buyer usually has to put a lot of faith into their jeweler, since they don’t have decades’ worth of study and experience to support them. As we said, it’s all too easy for someone to inflate (or understate) the results of an appraisal, so only by working with a trustworthy source can you feel sure that the number you’re given is the number you could feasibly get on the secondhand market.

If not, you could find that you’re offered a fraction of what’s printed on your appraisal documents if you ever do decide to sell the ring on.

Do Diamond Rings Have Resale Value?

Yes, although this could end up being less than what you paid for it – probably a percentage somewhere below 50%, and maybe as low as 25%.

The exact value of a diamond ring is dependent on a long list of factors, and, as a result, is pretty different to the amount you originally paid for it. That original price will have factored in the jeweler’s expertise, and the time they put into casting and perfecting your ring.

Don’t let that trick you into thinking you should skip the jeweler to get the best deal – when purchasing a diamond ring, an expert hand is as valuable as the diamond or gold it touches.

Diamond rings that were purchased from some of the world’s best engagement ring brands are apt to retain much more value – and to increase over time, provided they are well cared for and still bare the original ‘jeweler’s stamp. There are some horror stories out there from jewelers who have encountered vintage Cartier rings which, due to carelessness during a resizing, have plummeted in value from many thousands of dollars to – another great reason to research your jeweler before booking a consultation!

Contrary to popular thought, diamonds themselves don’t often increase in price over the years. The rise of massive online stores using wholesale options for diamonds has altered the entire market, but there will always be value in expertly crafted rings from a skilled jewelers – another reason why we’ll always encourage buyers to get off the computer.

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How Often Do I Need a Diamond Appraisal?

Every few years, ideally.

There are so many factors that can impact the value of a diamond ring, like the value of diamond and various precious metals, or the value of a particular brand or jeweler. Some insurers will require regular appraisals, so that they can adjust your policy accordingly.

Whatever your reason, if you have found a trusted appraiser to work with, we would recommend returning to them each time you wish to update your appraisal, in order to make sure that your results remain consistent.

Is a Diamond Appraisal Different to a Diamond Grading Report?

Yes – a diamond grading report follows criteria laid out by the GIA, and acts as confirmation that a diamond is genuine, and that its quality is consistent with what a seller is describing.

Any diamond you consider buying must have a valid GIA diamond grading report, or you can’t be sure it’s the real deal. You can use our GIA Report Check to ensure any report you view is valid, and not fraudulent.

Unlike an appraisal document, a GIA report does not stipulate a price, so you’ll want to have both in your records.