Weddingbee boards

So, typically appraisal values are high because appraisals are for insurance purposes rather than being an intrinsic value of the components of your ring. Jewelers put higher values on insurance appraisals so that the figure will be accurate up to several years in the future, and with engagement rings you are dealing with commodities whose prices fluctuate wildly all the time - mostly upwards. If your ring was insured for exactly what you paid, and you lose it a few years from now, the insurance company would only pay out on the 2012 value of your ring - which might be far below the actual cost of having a jeweler remake that ring, leaving you to pay the balance on the commodity increases out of your pocket. This is also why you need to periodically have your ring reappraised and why insurance companies typically don't accept appraisals more than two or three years old. 

When I appraise new purchases that include large stones I typically would appraise a hypothetical $10,000 ring for around $13,000, depending on what the stone was. (It was common in the nineties and before to, like, quadruple the purchase price, but that practice is falling out of favor because it leaves you way overinsured AND you pay too much for your insurance.) If I'm appraising an antique or vintage piece, I calculate a high estimate of what it would cost me to currently remake that piece. 

We bought the ring for just shy of 7k but it was apraised at over 23k (um, shocked to say the least)... so that's what we have it insured for.

edit: read a previous post... it looks like we're overinsured! Our insurance rates aren't outrageous, though. If they were I would consider getting a different appraisal.

@shambley:  It depends. if you bought your ring secondhand or something, it's possible you just got an exceedingly great deal - but it sounds to me like yes, you're probably at least a bit overinsured.