Jewellery Valuation, Everything You Need To Know

07/09/2018

Whether it’s your new engagement ring, diamond insurance, a family heirloom or just your collection of jewellery over the years, your jewellery is precious, so it’s important to make sure it’s properly valued.

Our Jewellery Valuation Top Ten Tips are:

1. Establishing the purpose of the valuation

The term 'valuation' can cover a wide variety of purposes.

You may need a full valuation report for a variety of reasons, for example:

To insure your items of jewellery
For HMRC for probate purpose
For a divorce settlement
For a family dispute

This is not an exhaustive list of reasons you may need a valuation, but if you are unsure if you require one, please get in contact with us and we would be happy to advise further.

2. Check your insurance policy

Depending on your individual policy, some items will be automatically covered under the general contents insurance, often up to around £1500. If a single item of jewellery is below this threshold, you may not need to get the piece itemised on your insurance. Also check your policy protects you against accidental damage to your jewellery. If you have many valuables it may be worth using jewellery insurance specialists, such as TH March as they specialise in jewellery.

3. Expertise is important, ensure they are IRV registered

Your jewellery valuation is a legally binding document for your most treasured possessions, so it should include a detailed description of the item, along with a photograph of your piece of jewellery and an accurate value. Having your valuation carried out by a competent and qualified professional is of the utmost importance. This may seem an obvious statement and you may assume that all companies that offer a valuation service, are providing this service with a qualified valuer, however in many instances this is not the case. There is no minimum requirement of competence for anyone to be able to offer valuations, unless they are a registered IRV; those who achieve IRV status have studied and qualified to show a high level of competence and understanding of jewellery, Gemstones, and Diamonds to provide detailed and accurate assessments. Each candidate must perform to the highest levels during examinations and regularly show continued development to be granted and keep their IRV status as a valuer. In-house valuers are also worth looking out for, as they will not have to send any items away and typically have a faster turnaround.

4. Just want to know how much your item is worth?

Are you simply looking for a diamond ring valuation? This is a question we get asked a lot and unfortunately the answer is not straight forward. There are many types of valuations, each of which would ascribe the same item a very different value. How much you would get if you were looking to sell an item, is very different for how much you would need to insure the same ring for or how much it would need to be declared for probate. It’s important to ask yourself what you are looking to achieve from finding out the value. This can help a professional guide you to the most suitable service.

5. Cutting costs can cost money

Buy cheap, buy twice is a well known phrase that also applies when having your jewellery items valued for insurance. If a company is able to offer rock bottom charges, it is usually an indication that corners are being cut somewhere to keep prices down. The charges for your valuations are to cover the expertise, experience and time of the IRV, professional jewellery equipment used for testing, as well as insurance of your item being valued whilst with the company. Using a highly skilled valuer results in the best value for money, should it come to needing your item replaced, as any incorrectly detailed valuations may result in the failure of a claim with your insurer.

6. Be prepared to leave your item with the valuer

It may be heart-wrenching to leave your much beloved item with a jeweller, but to take all the necessary assessments and test all the components, it takes time and will need to be done in controlled laboratory-style conditions to make sure it is accurate. Providing sufficient time for your item to be accurately assessed is a standard requirement, this enables the valuer to carry out the vast number of measurements, detailed inspections, documenting, photographing, Gemmological testing and market pricing; that will ensure your item is correctly identified and listed for the purposes of replacement in the event of loss, for insurance.

It is worth noting accurate valuations should not be rushed and can never be conducted online. There is no way to test or measure any item correctly through images and many insurance companies will not accept ‘while you wait’ or ‘online’ valuation services. Check with your insurer before be caught out with a potentially incorrect and invalid valuation.

7. Keep valuation updated

To keep your policy valid, it’s important to make sure it’s up to date. Due to how much the market fluctuates, some insurers may specify how often they require jewellery to be re-valued. It’s generally recommended every 2-3 years. Some companies will provide you with a discounted re-valuation service if they have valued the same item in the past three years, so it is always worth asking.

8. Get your jewellery checked regularly

It’s not just about jewellery being stolen or lost, sometimes jewellery gets damaged. It’s good to get in the habit of getting your jewellery checked, such as the settings, to make sure everything is secure. If you have a particularly valuable piece, it may be stipulated in your policy how often you need to get the jewellery checked by a professional. Insurance companies may also specify for high-value items that the check of the security of the setting and condition of an item of jewellery is documented in a letter by a member of the Institute of Registered Valuers for the insurance to be valid. It’s also great for your own peace of mind.

9. Beware of online insurance valuation services

There has been a recent increase in jewellery valuations completely solely online by photographs, which then produce valuations far from the required standard, mis-identifying gemstones and ascribing the wrong values. Grading is always a requirement for establishing correct values, which is done using a minimum of 10x magnification, so cannot under any circumstance be done through a photograph, however good the photograph may be. Items and gemstones can also not be measured, verified, or laser inscriptions confirmed, potentially resulting in you either paying unnecessary large insurance premiums on an item or not being covered should anything happen to the item, so due to the wild inaccuracy of these valuations, they are no longer accepted by a vast number of insurance companies.

10. Use a company you trust

Always check company reviews and which professional associations they belong to. We understand jewellery is sentimental, so it is important you feel comfortable that they would care for your jewellery and provide you with a great service.

Here at Hatton Jewels, we're registered members of the Academy of Experts in jewellery and a member of the Institute of Registered Valuers (IRV), with our team having a vast wealth of experience in jewellery and valuations, so we can offer a comprehensive and accurate valuation service. If you are require a valuation of your item of jewellery, whether that's an insurance valuation for your engagement ring or for an antique Diamond tiara, we're here to help. Call us on 0203 116 0069 or email us on info@hattonjewels.com to discuss with one of our friendly team.