Ring cost vs appraisal

posted 2 years ago in Rings
Post # 2
Member
8071 posts
Bumble Beekeeper
  • Wedding: September 2015

Well two factors could be at work: buying online means youre not paying a brick and mortar markup. (That markup does not show up in the appraisal)

The other is that you got a loose/friendly/inflated appraisal for insurance purposes. So if something happens to your ring you have a better shot of actually getting something of equal value to your original. 

Post # 3
Member
1084 posts
Bumble bee
  • Wedding: April 2014

jenuine88:  The appraisal on my ring was significantly higher than what my husband paid. He paid about 13k and the appraisal was for 21.5k. My ring is from Blue Nile and I know they have good prices so that probably helped. 

Post # 4
Member
541 posts
Busy bee
  • Wedding: May 2000

My stone appraised 40% higher than the purchase price.  This was partially due to the stone sitting in the case for 9 months and my husband paid cash which got him a discount.  However, jewelry typically appraises higher than the purchase price.

Post # 5
Member
4411 posts
Honey bee
  • Wedding: December 2010

jenuine88:  Appraisals are ALWAYS way more than the purchase price. They will also always be WAY more than what you could ever sell your rings for. Appraisals are for insurance purposes, and if you lose your ring, that is the highest amount the appraiser determines to replace your ring with a like kind and quality at an undetermined store. The price you paid is the lowest possible price you could get at a determined store.  

Post # 7
Member
559 posts
Busy bee
  • Wedding: July 1993

An apraisal like that can hurt you if you are getting insurance for it. It is best to get an appraisal closer to the real cost of the ring. 

Post # 8
Member
1506 posts
Bumble bee
  • Wedding: December 2014

jenuine88:  My Verragio ring was appraised at 80% more than what he paid for it. He bought it on maaaajor discount too, so thats why ours was appraised as more. If we had paid full price for it, the appraisal would have been right on.

Post # 9
Member
4411 posts
Honey bee
  • Wedding: December 2010

Mdmc:  The problem with getting an appraisal closer to the purchase price is that the insurance company will not pay you enough to replace the ring at like kind and quality.  

For example; I’ve had my engagement ring for four years–they don’t sell it in the stores any longer, so I can’t walk into a store and replace it if I lose it. It will have to be custom made. That means the appraisal value has to be much higher than the retail price was. If I insure it close to the retail price, I won’t get enough money to replace it. 

 

Post # 10
Member
1317 posts
Bumble bee

5x? Holy moly. That sounds a bit off. Its great for you but i’d get a second opinion, mainly because it’ll mean paying more to keep it insured. 

Post # 11
Member
1317 posts
Bumble bee

Loribeth:  I don’t think that’s true. The retail price is usually jacked up massively so if it’s appraised at retail value, you’d be fine. 

Post # 12
Member
1249 posts
Bumble bee
  • Wedding: April 2014

When you get your ring appraised, you need to ask for what is called the “replacement value”.  It differs from an appraised value in that the replacement value is what one can expect to pay when entering a store and purchasing a similar item.  The appraisal value is basically not worth the paper it is printed on.

Also, one should get a ring appraisal every 4-5 years to keep current with market trends.

Post # 13
Member
4411 posts
Honey bee
  • Wedding: December 2010

mazzoffee:  I worked in a jewelry store. The prices are not jacked up as high as you think.  And even if they were, I’m not sure why you think you’d be okay at the current retail price. If you are going to insure it at retail value, you might as well not insure it at all.

When you insure a house, you do not insure it at the price you bought it. You insure it at the price it would cost to replace it.  You do the same with your rings. To do otherwise is to risk not being able to get like kind and quality.  BTW, I used to sell insurance too.

Post # 14
Member
1317 posts
Bumble bee

Loribeth:  In Australia they definitely jack up the price. I don’t know what my hubby paid for mine but a solitare with plain shank and much lower quality diamonds go for what mine was appraised for, or more. I guess if you buy from a wholesaler it’s different. We wouldn’t buy from a jewellery store so having it insured more than he paid would be sufficient to get it remade at a wholesaler again if we needed. 

Post # 15
Member
4411 posts
Honey bee
  • Wedding: December 2010

mazzoffee:  Let me put it another way…

You buy a diamond at BlueNile for $10,000, and it is appraised for 40% higher, that’s $14,000 on an average retail replacement value.

So you decide to insure it for the retail price of $10,000 instead of the appraised value, and five years from now you lose your diamond.

You would only be covered for $10,000, yet that diamond will no longer be available for $10,000. In all likelihood the cost would be closer to about $13,500, based on the way diamond prices are always going up.

And you would be out almost $4,000…

This, to save about $45-$60 premium per year.

Me, I would go with the appraised figure. The peace of mind is worth the extra $45-$60 extra per year. 

I guess if the amount your ring was appraised for only covers diamonds of lower quality than the one you have, I don’t understand why you would not want to get a higher appraisal. Unless you don’t want to replace with like kind and quality. 

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