What Is a Jewellery Valuation and Why Do I Need One in Ireland?

Written by Darren Cotter
Graduate Gemmologist, HRD Antwerp | Jewellery & Diamond Valuer

If you own a diamond ring, engagement ring, wedding ring, gold jewellery or another valuable piece of jewellery, you may have heard that you should have it professionally valued.

But what exactly is a jewellery valuation?

And perhaps more importantly, do you actually need one?

Having worked with diamonds and fine jewellery for many years, including diamond buying, gemmology and jewellery valuations, I have seen first-hand why having accurate documentation for valuable jewellery can make such a difference if something goes wrong.

A jewellery valuation is much more than simply putting a price on a ring or necklace.

A professional valuation records what the jewellery is, what it is made from, the characteristics of the diamonds or gemstones, its condition and, depending on the purpose of the valuation, its appropriate current value.

For many people, the main reason for having a jewellery valuation is insurance.

However, there are several other situations where a professional jewellery valuation can be extremely useful.

What is a jewellery valuation?

A jewellery valuation is a professional assessment and written report that identifies and describes a piece of jewellery and provides an appropriate value based on the purpose of the valuation.

When I carry out a jewellery valuation, I am not simply looking at a piece of jewellery and deciding what I think it is worth.

I look at the individual components.

Depending on the jewellery, this can include:

• The type and purity of the precious metal
• Hallmarks and identifying marks
• The weight and dimensions of the item
• The design and construction
• The condition of the jewellery
• The type, size and quality of diamonds
• Diamond colour, clarity, cut and carat weight
• Diamond certificates, where available
• Coloured gemstones and their characteristics
• The setting and method of manufacture
• Any unusual or important features
• Photographs and supporting documentation
• The appropriate current value for the purpose of the valuation

This is particularly important with diamond jewellery.

Two rings can look very similar to the untrained eye but have significantly different values because of differences in the quality of their diamonds, the metal used, the craftsmanship or other characteristics.

That is why a professional jewellery valuation should be based on careful assessment, experience and supporting evidence rather than simply estimating a value from the appearance of a piece.

Why do I need a jewellery valuation in Ireland?

For many people, the main reason is jewellery insurance.

Irish home insurance policies can place limits on valuable items such as jewellery. Depending on the policy and the value of an item, an insurer may require high-value jewellery to be specifically declared or insured separately. Policies can also have limits on individual valuable items and on the total value of valuables covered.

This is where having an accurate, professional jewellery valuation becomes important.

Imagine that you have an engagement ring that you purchased several years ago.

You know what you paid for it at the time, and perhaps you still have the original receipt.

But the amount you paid several years ago is not necessarily the same as the cost of replacing that ring today.

The price of precious metals, diamonds, manufacturing and other components of jewellery can change over time.

If the ring is lost, stolen or damaged, having a detailed valuation gives you and your insurer important information about exactly what was insured.

Instead of simply saying:

"I lost a diamond ring."

you can provide documentation describing the ring, its metal, the diamond or diamonds, their characteristics, photographs and the appropriate replacement value.

That creates a much clearer record of what you owned.

A valuation does not guarantee that an insurance claim will be paid or that an insurer will settle a claim for exactly the figure shown on the valuation. Your individual insurance policy and its terms will determine how a claim is handled.

However, having accurate documentation can provide a much stronger starting point when dealing with a claim.

What happens if my jewellery is lost or stolen?

This is one of the situations where I believe a professional jewellery valuation is most valuable.

Nobody wants to think about losing an engagement ring or having a valuable piece of family jewellery stolen.

Unfortunately, it does happen.

If you need to make an insurance claim, being able to provide a detailed valuation can give your insurer much more information about the item.

Instead of trying to remember the details of a piece of jewellery after it has disappeared, you have a professional record describing what you owned.

This can be particularly important with diamond jewellery.

The valuation can record details such as the type of diamond, its characteristics, the precious metal, the design and other identifying features.

The more information that can be provided about an item, the easier it is to establish what was originally owned.

Is a jewellery valuation the same as the price I paid?

No, and this is one of the most common misunderstandings I come across.

There can be several different values associated with the same piece of jewellery.

The original purchase price

This is simply what you paid when you bought the jewellery.

The insurance replacement value

This is an assessment of the cost of replacing the jewellery with an equivalent item, based on the purpose and terms of the valuation.

The resale or second-hand value

This can be considerably different from the insurance replacement value.

The scrap value

This relates primarily to the recoverable value of the precious metal and other materials rather than the value of the finished piece as jewellery.

These figures should never automatically be treated as interchangeable.

This is particularly important when people search online for the value of an old ring or a piece of inherited jewellery.

Finding that a similar ring sold online for €1,000 does not necessarily mean that €1,000 is its insurance replacement value.

The purpose of the valuation matters.

Why can't I just use my receipt?

A receipt is useful, and I always recommend keeping purchase receipts and any certificates that came with valuable jewellery.

However, a receipt tells you what you paid for an item at a particular point in time.

It does not necessarily provide a complete professional description of the jewellery or its current replacement value.

For example, a receipt might simply say:

18ct white gold diamond ring – €3,000

That is information, but not what I, or an insurance company, would consider useful information.

But a professional jewellery valuation can go much further by recording details about the ring, including the metal, diamonds, characteristics, condition and other identifying information.

This can become particularly valuable if the jewellery is subsequently lost or stolen.

Do I need a jewellery valuation if my insurance covers jewellery automatically?

This is where I always recommend checking the actual wording of your insurance policy.

Some policies provide a level of cover for unspecified jewellery, while higher-value individual items may need to be specified separately.

So don't simply assume:

"My home insurance covers jewellery, so I'm covered."

Instead, check:

• What is the single-item limit?
• Is there a total limit for jewellery?
• Does my engagement ring need to be specified?
• Is accidental loss covered?
• Is accidental damage covered?
• Is the jewellery covered outside the home?
• Does my insurer require a valuation above a particular value?
• How recent does the valuation need to be?
• Are there any security requirements?

Insurance policies vary, so your insurer or broker should always be your first point of reference for the exact terms of your cover.

How often should jewellery be valued?

There isn't one universal answer that applies to every piece of jewellery or every insurance policy.

However, I would not recommend assuming that a valuation remains accurate forever.

Jewellery values can change over time, and a valuation carried out several years ago may no longer reflect current replacement costs.

This is particularly relevant to diamond jewellery and pieces containing significant amounts of precious metal.

I regularly come across valuations that are several years old.

Sometimes the original valuation was perfectly accurate when it was completed.

The problem is that the market can change.

Gold prices can move, diamond and gemstone markets can change, and manufacturing and replacement costs can increase.

For that reason, I recommend reviewing your jewellery valuations periodically and checking with your insurer to see whether they require updated documentation.

What information do I need for a jewellery valuation?

The more information available, the better.

If you are arranging a jewellery insurance valuation, I would recommend gathering any documentation you have before starting.

This may include:

• Original purchase receipt
• Previous valuation
• Diamond certificate
• Gemstone certificate
• Photographs
• Insurance documentation
• Information about where and when the jewellery was purchased
• Any previous repair or alteration records

Don't worry if you don't have all of these.

A lack of paperwork does not necessarily mean your jewellery cannot be valued.

An experienced valuer can assess the jewellery and work with the information that is available.

What jewellery can be valued?

A professional jewellery valuation can cover many different types of jewellery, including:

• Engagement rings
• Wedding rings
• Diamond rings
• Eternity rings
• Gold rings
• Diamond earrings
• Gold earrings
• Diamond pendants
• Necklaces
• Bracelets
• Bangles
• Brooches
• Family heirlooms
• Coloured gemstone jewellery
• Bespoke jewellery
• Luxury watches

At Diamond Valuations Ireland, we specialise in jewellery and diamond valuations for customers throughout Ireland.

Our online valuation service allows customers to have suitable jewellery assessed without having to travel to a valuation office. We can assess photographs, diamond certificates, receipts, previous valuations and other supporting documentation before preparing a detailed valuation report.

What if I have lost my jewellery already?

This is an important point because sometimes people only think about a valuation after something has gone wrong.

If jewellery has already been lost or stolen, there may still be circumstances where a professional valuation can be useful.

A post-loss jewellery valuation can help establish information about the item based on available evidence such as photographs, previous documentation, purchase receipts, diamond certificates, insurance schedules and other supporting information.

At Diamond Valuations Ireland, we provide post-loss jewellery valuations for customers throughout Ireland where an item has been lost, stolen or damaged and supporting evidence is available.

It is obviously much easier to document a piece of jewellery while you still have it, which is why I always recommend keeping good records of valuable jewellery.

But if you have already suffered a loss, don't automatically assume that it is too late to seek professional advice.

What about jewellery I have inherited?

Inherited jewellery is another situation where valuations can be particularly useful.

You may have been given your grandmother's diamond ring, for example.

You may know that it is old and believe that it is valuable, but you may have no idea what type of diamond it contains, what metal it is made from or what it would cost to replace.

A professional valuation can document the jewellery and provide an appropriate valuation for its intended purpose.

It can also give you a permanent record of an important family piece.

For valuable inherited jewellery, I would recommend having it documented rather than simply putting it away and forgetting about it.

What makes a good jewellery valuation?

In my experience, a good jewellery valuation should provide considerably more information than simply a figure at the bottom of a page.

It should clearly identify the item and explain the basis of the valuation.

Depending on the piece, I would expect a professional report to include details such as:

1. A description of the jewellery

The report should clearly describe and identify the item.

2. Metal information

This may include the type of metal, purity, hallmarks and weight where appropriate.

3. Diamond information

Where diamonds are present, relevant characteristics should be recorded as accurately as possible.

4. Gemstone information

Coloured gemstones should be identified and described where possible.

5. Condition

The condition of the jewellery should be taken into account.

6. Photographs

Photographs can provide valuable supporting evidence and help identify the item.

7. Appropriate valuation

The report should clearly state what type of value is being provided and the purpose for which the valuation has been prepared.

This last point is particularly important.

A valuation should always have a clearly defined purpose.

Why choose a specialist jewellery valuer?

One of the reasons I established Diamond Valuations Ireland was because I believe jewellery valuation should be treated as a specialist service.

My background is in diamonds and jewellery rather than simply looking at a piece and giving it an estimated price.

I have spent many years working with diamonds, jewellery businesses and the Irish jewellery trade, including diamond buying, gemmology and valuation work.

That experience matters because jewellery can be complicated.

A diamond ring isn't simply worth "the price of a diamond plus the price of the gold".

There are many factors that can influence the assessment.

The same applies to coloured gemstones, antique jewellery, bespoke pieces and jewellery containing unusual or high-quality diamonds.

At Diamond Valuations Ireland, jewellery valuation is our specialist focus rather than an additional service attached to selling jewellery. Our valuations cover diamonds, coloured gemstones, precious metals and fine jewellery, with services available to customers throughout Ireland.

Do I need a jewellery valuation in Ireland?

If you own valuable jewellery, particularly an engagement ring, diamond jewellery, inherited jewellery or other high-value pieces, I believe it is worth having those items properly documented and valued.

You may never need to make an insurance claim.

Hopefully you won't.

But if you ever do lose a valuable piece of jewellery, have it stolen or suffer significant damage, you will be glad that you have a detailed record of what you owned.

The important thing is not simply having a number written on a piece of paper.

It is having a professional description of the jewellery and an appropriate current valuation for its intended purpose.