Jewellery valuation - National Association of Goldsmiths

Clive_Woody

For my home insurance I need to get a certificate of valuation for my wife's engagement ring and send a copy to my insurers. The ring was valued at £3755 around three and half years ago, but no doubt is worth more now.

This morning I phoned a couple of local jewellers to get an idea of how much a valuation would cost, and they came back with quite different prices.

One jeweller quoted in the region of £138 to do the valuation, based on NAG (National Association of Goldsmiths) scale of charges for valuations.

The other said they charge a flat fee of £40+vat.


Both would take pictures, provide 2 copies of a valuation certificate and a detailed description.

I am concerned at the disparity in prices and would welcome any opinions on whether going for the cheaper option may potentially cause issues in the future should I have to make a claim or if the NAG valuation fee is artificially high.

Many thanks

dogbot

Is the cheaper jeweller a member of some professional organisation as well?

Clive_Woody

dogbot wrote: »

Is the cheaper jeweller a member of some professional organisation as well?

I will have to check, their website is under construction so no information there.

gem_man

Hi Clive

A couple of points.......

Firstly, trade associations are not allowed by law to dictate valuation fees that their members' charge. So the fee you have been quoted is that of the retailer not the National Association of Goldsmiths.

Secondly, being a member of the NAG doesn't automatically mean that they are experts in the jewellery valuation area any more than than not being a member means that they are poor valuers. The Institute of Registered Valuers is an association that comes under the umbrella of the NAG and membership of the IRV carries more weight in this area. (perhaps you meant the IRV rather than the NAG).

The important thing to realise is that jewellery valuation is like any other service or product, there are good ones and bad ones. There are valuations that will ensure your complete protection and there are valuations that will get you into trouble at some point.

Generally, as with most things, you get what you pay for and whilst an inexpensive service may appear appealing in the first instance, one has to ask the question "what is missing?". Maybe it is the level of detail, maybe it is the credentials of the appraiser or the level and cost of the ongoing support. The cheapest valuation may end up being the most costly in the long run.

So, you need to ask a few questions:

• Ask to see a sample of one of their valuation reports.
• Ask what credentials the valuer has. You should be looking for a Registered Valuer with the IRV and/or a member of the Association of Independent Jewellery Valuers (the latter will be carrying out the work on the retailer's behalf). You should also be looking for some gemmological qualifications to ensure that any gemstones and diamonds are correctly identified and graded.
• Ask what the re-valuation charges are. Your valuation should be updated every 3 years. Some will charge you another full valuation fee, others will charge just a nominal fee for this service on the basis that the main work has already been done and doesn't need to be paid for again.
• Ask how long it will take. If the item is being posted away somewhere, you may not get it back for 2 or 3 weeks.

As a professional jewellery valuer I can tell you that there is a world of difference between a thorough and accurate jewellery valuation where the client receives ongoing service and a the cheap "do as little as possible" type of valuation.
One will ultimately save you money and heartache, the other can cost you very dearly indeed if something goes wrong.

Hope this has helped

Regards
Adrian

Clive_Woody

gem_man wrote: »

Hi Clive

A couple of points.......

Firstly, trade associations are not allowed by law to dictate valuation fees that their members' charge. So the fee you have been quoted is that of the retailer not the National Association of Goldsmiths.

Secondly, being a member of the NAG doesn't automatically mean that they are experts in the jewellery valuation area any more than than not being a member means that they are poor valuers. The Institute of Registered Valuers is an association that comes under the umbrella of the NAG and membership of the IRV carries more weight in this area. (perhaps you meant the IRV rather than the NAG).

The important thing to realise is that jewellery valuation is like any other service or product, there are good ones and bad ones. There are valuations that will ensure your complete protection and there are valuations that will get you into trouble at some point.

Generally, as with most things, you get what you pay for and whilst an inexpensive service may appear appealing in the first instance, one has to ask the question "what is missing?". Maybe it is the level of detail, maybe it is the credentials of the appraiser or the level and cost of the ongoing support. The cheapest valuation may end up being the most costly in the long run.

So, you need to ask a few questions:

• Ask to see a sample of one of their valuation reports.
• Ask what credentials the valuer has. You should be looking for a Registered Valuer with the IRV and/or a member of the Association of Independent Jewellery Valuers (the latter will be carrying out the work on the retailer's behalf). You should also be looking for some gemmological qualifications to ensure that any gemstones and diamonds are correctly identified and graded.
• Ask what the re-valuation charges are. Your valuation should be updated every 3 years. Some will charge you another full valuation fee, others will charge just a nominal fee for this service on the basis that the main work has already been done and doesn't need to be paid for again.
• Ask how long it will take. If the item is being posted away somewhere, you may not get it back for 2 or 3 weeks.

As a professional jewellery valuer I can tell you that there is a world of difference between a thorough and accurate jewellery valuation where the client receives ongoing service and a the cheap "do as little as possible" type of valuation.
One will ultimately save you money and heartache, the other can cost you very dearly indeed if something goes wrong.

Hope this has helped

Regards
Adrian

Thank you for such a detailed response. I was told on the phone that the valuation charges were set by NAG on a sliding scale (based on valuation price), so possibly they are taking a little liberty with truth.

We have a previous valuation from just over three years ago which is very detailed with a separate certificate for the diamond. Unfortunately we have moved and it is now too far to go back them.

The cheaper valuer is apparently a 'registered valuer'. Registeed with whom I will have to enquire about. It is a family business that has been opperating since 1911. The valuer been second generation jeweller.

As a rough idea what sort of percentage change would you expect a platinum ring with 0.5ct diamond to have increaed in value in 3 years?

Thanks, really appreciate your advice.

gem_man

Clive

You are very welcome.... happy to help.

If the jeweller has stated he/she is a "Registered Valuer" then this will be with the IRV as this is their official designation. It is possible that they are still using this title as a remnant from the old and now no longer valid Registered Valuers Scheme from the NAG. The IRV has superseded this scheme.
You can check if they are entitled to use the term "Registered Valuer" by visiting the Institute of Registered Valuer's website. I don't think this forum allows links, so I cannot post one but just google for it and you will find it no problem. They have a "Find a Valuer" button so you can search by area.
Similarly you can do the same thing on the Association of Independent Jewellery Valuer's website. All AIJV members in the UK must also be a Registered Valuer with the IRV (confused yet?)

Alternatively, private message me with your location and I may be able to recommend someone to you.

From what you say, it sounds like you are being quoted a percentage-based banded fee for the higher quote. Since the value of the ring is significant this is being reflected in the fee quoted. This could account for the large disparity between the quotes if the other person is charging a fixed per-item fee or a time based fee, in which case their fee will not have anything to do with the value of the item. This is, in my opinion, a much more ethical way of charging although their fee does sound low to me.

Regarding the alteration in value since you last had the ring valued:
Clive, at the risk of sounding unhelpful........ I am afraid it just doesn't work like that. The alteration in value will vary greatly according to how the mount has been made and the quality of the diamond and its cutting. By that I mean, diamonds of the same weight and cutting style can increase or decrease in value according to the many factors that constitute the diamond's overall quality. This is in part why it is important to find someone who can accurately assess these factors. To give an example the value of a cut diamond can vary by as much as 30% alone, depending purely on how well it has been cut (assuming all other factors are equal).

The nearest I can get to answering your question is to say that given the market conditions for this type of piece and the size of the diamond, the value will most likely to have increased. ....... not much help there then

Again, I hope this is of some assistance to you.

Kind regards

Adrian

Clive_Woody

gem_man wrote: »

Clive

You are very welcome.... happy to help.

If the jeweller has stated he/she is a "Registered Valuer" then this will be with the IRV as this is their official designation. It is possible that they are still using this title as a remnant from the old and now no longer valid Registered Valuers Scheme from the NAG. The IRV has superseded this scheme.
You can check if they are entitled to use the term "Registered Valuer" by visiting the Institute of Registered Valuer's website. I don't think this forum allows links, so I cannot post one but just google for it and you will find it no problem. They have a "Find a Valuer" button so you can search by area.
Similarly you can do the same thing on the Association of Independent Jewellery Valuer's website. All AIJV members in the UK must also be a Registered Valuer with the IRV (confused yet?)

Alternatively, private message me with your location and I may be able to recommend someone to you.

From what you say, it sounds like you are being quoted a percentage-based banded fee for the higher quote. Since the value of the ring is significant this is being reflected in the fee quoted. This could account for the large disparity between the quotes if the other person is charging a fixed per-item fee or a time based fee, in which case their fee will not have anything to do with the value of the item. This is, in my opinion, a much more ethical way of charging although their fee does sound low to me.

Regarding the alteration in value since you last had the ring valued:
Clive, at the risk of sounding unhelpful........ I am afraid it just doesn't work like that. The alteration in value will vary greatly according to how the mount has been made and the quality of the diamond and its cutting. By that I mean, diamonds of the same weight and cutting style can increase or decrease in value according to the many factors that constitute the diamond's overall quality. This is in part why it is important to find someone who can accurately assess these factors. To give an example the value of a cut diamond can vary by as much as 30% alone, depending purely on how well it has been cut (assuming all other factors are equal).

The nearest I can get to answering your question is to say that given the market conditions for this type of piece and the size of the diamond, the value will most likely to have increased. ....... not much help there then

Again, I hope this is of some assistance to you.

Kind regards

Adrian

Many thanks once again.

The registered valuer (the cheaper one) is listed on the IRV website which is reassuring even if his service does seem somewhat of a bargain price.

The diamond is 1 stone, round brilliant cut, colour G, Clarity VSI, weight 0.5ct (length 5mm, width 4.96mm, depth 3.25m) and has it's own certificate from the Gemological institue of America. Platinum band, rub over setting, gross weight of the ring is 7.4grams.

dacouch

If your Insurer have requested the valuation, ask them if the jeweller has to be a member of a particular trade organisation as some will only accept valuations from a particular one

fossiebear

Hi,

Following on this thread - we had our jewellery professionally valued in 2008 and when we took it back to have it revalued in 2011 we were advised by the jeweller not to bother as the insurance industry had a set formula for revaluation.

If a piece was worth £500 in 2008 it would be worth £X in 2013 depending in the price of the materials (up or down).

Can anybody help with what the formula is or whether we should shell out to have it revalued?

gem_man

Hi Fossiebear

Happy New Year to you.

Not to put a too fine a point on it, what you have been told is total tosh.

Many insurance companies do apply an Index Linking factor to the sum assured to try and keep pace with the general upwards movement of replacement costs of normal household items. This most definitely doesn't apply to jewellery and a lot of other items.

The value adjustments for jewellery, diamonds and gemstones is very complex. To cite an example, diamonds have been very volatile of the last couple of years but even then, we cannot generalise. Some shapes, grades and weights have increased while at the same time, others have gone down.

To give a plainer and more obvious example - I am sure you know that a few years ago, gold prices went through the roof (and are still sitting at a high level). Had you applied this Jeweller's theory back then and now have to claim, you would be hopelessly under-insured, would have incurred a financial penalty from the Insurer and in all probability had the claim knocked back with a potential for having your contract with the company being made void (with all the bad knock-on effects that this would also bring).

Conversely, as the gold price settles in the future (my assumption), using this Jeweller's theory would mean you would be paying excessive premiums as a result of excessive cover (no, they are not going to write you a cheque).

I am afraid Fossiebear, if you have a significant item of jewellery that you wish to protect, you need to do the job properly and go to a good Independent Jewellery Valuer and have a good appraisal and valuation carried out. Typically, revaluations from the same professional are carried out at nominal cost only.

If you would care to tell me your location, I would be happy to recommend someone good in your area (probably better to send me a private message or email)

Kind regards

Adrian