About Gemstone Appraisals
Gemstone values tend to increase over time, particularly top-quality gemstones,
which are scarce and always in high demand.
Although values tend to increase over
time, there can be some fluctuation in the appraised values of any particular
gemstone. To a large degree, this fluctuation
is due to:
- Supply and Demand
- Individual Subjectivity
- Type of Appraisal
Supply and Demand:
Both supply and demand can contribute to gemstone value
fluctuations. An example of supply-side value increase would be a gemstone which
has a limited geographic sourcing, such as Tanzanite or Tsavorite. If supply were to
be interrupted (area and mine flooding, for example) and demand remain constant, it
could be expected that the value of such a gemstone would increase significantly.
The reverse could hold true as well, such as a new mine and source located with
abundant supply for a gemstone that has previously been in scarce supply.
Individual Subjectivity:
To an extent, the personal preferences of the appraiser can
bear on appraised value of a gemstone. Cut, color, clarity, and carat weight
essentially determine the desirability of a given gemstone variety. The weighting of
each of these four variables can be influenced by preferences of the appraiser. For
example, Emeralds which are true-green in color may be graded and valued higher
than those that are slightly bluish-green by a given individual appraiser, and the
reverse may be true for a different individual appraiser.
Type of Appraisal:
Replacement cost appraisals, commonly referred to as
insurance appraisals, are designed to cover an individual in the event of loss of
property, so these tend to result in higher valuations for gemstones and jewelry,
because they are intended to provide coverage for replacement in a market that has
fluctuating valuations.
GemSuite.com provides for a ten-day inspection period, which allows ample time for
the Customer to have an independent appraisal done, if the Customer so desires. Our
experience has been that insurance appraisals typically result in a valuation of our
gemstones at 2 to 4 times the purchase price for the gemstone, if the appraiser
provides an unbiased and fair evaluation. If an appraisal is done by a third party that
has an interest in selling the GemSuite.com Customer gemstones, this could
introduce bias into the appraisal process.
To put it another way, if you were in the business of selling gemstones to your Customers, would you be likely to rave about what an excellent purchase bargain you obtained by taking your business elsewhere? GemSuite.com recommends that independent appraisals be done by parties that have
no interest in the outcome of the appraisal, except for providing a fair and accurate
assessment of gemstone value.
Does This Help?
Please continue shopping. Still have questions? Take a look at Frequently Asked Questions.
You may also send us e-mail at any time at info@gemsuite.com or call us toll-free within the United States at 1-888-994-4367.
We make every effort to respond to both e-mail and phone within 24 hours and
will certainly respond within two business days.
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