Appraising and Insurance

To view our informative consumer brochure, What You Should Know About Jewellery Appraisals, please click here.

Appraising a piece of jewellery essentially means determining how much it is worth. To be able to appraise an item of jewellery, appraisers must first of all identify it correctly and then evaluate its quality. They must also be able to convey their findings in a written report, justify their process and abide by a professional code of ethics. Very often, the role of a gemmologist is confused with that of an appraiser. In peoples’ minds, gems are synonymous with high value. When consulting a gemmologist, customers automatically expect to find out how much their stones are worth. However, although gemmology and appraisal are complementary disciplines, they are two distinct specialties. A gemmologist is an expert in identifying gems, whereas an appraiser assesses their quality and determines their value in light of the commercial context and market pressures.

Appraisal: An appraisal is an unbiased opinion as to the identity, composition, qualities and values described in an appraisal document, which is the official report of the appraisal. The document must include a detailed description of the item, using recognized terminology and grading systems.

Insurance appraisal: An insurance appraisal is a comprehensive description supporting an estimate of the value to be used as the basis for establishing the cost of an insurance policy. It represents the top value for settlement in the event of a claim. If you ever have to make a claim on your jewellery, an accurate and up-to-date appraisal provides the details of what makes your piece distinct and is the best way to assure you are properly protected for its full value. With the right personal jewellery insurance, if you need a repair or replacement, you should be able to receive the same kind and quality as the original item.

The Canadian Jewellers Association (CJA) represents consumer trust and confidence within the jewellery-buying public. With ethics and social responsibility at the forefront, CJA members aim to provide their customers with the highest quality of service and information available when it comes to appraising both gemstones and jewellery.

During the last few years, Canadian appraisers have had an efficient tool at their disposal to regulate the work of appraisers, namely the “Jewellery Appraisal Guidelines - Minimum Acceptable Standards” published by the CJA and Jewellers Vigilance Canada (JVC).The CJA also offers its members a course in gem and jewellery appraising. The Accredited Appraiser Program is open to anyone with an interest in gem and jewellery appraising and who agrees to uphold the AAP Code of Ethics and Standards.

When inquiring about the identification and valuation of gems and jewellery it is important to remember that the value assigned to jewellery can vary depending on the function of the appraisal or report. Therefore it is essential to address your needs and the purpose of the appraisal with your appraiser.

Consumer Advisory - Jewellery Appraisals

What consumers need to know!

The term "appraised value" represents the estimated market value of a jewellery item on a given date, given by a qualified person. When "appraised values" are used by jewellers in comparative price advertising situations, for example "Diamond Rings - Appraised value $850, A deal at only $550", and these "appraised values" do not represent genuine market prices, it could mislead consumers to believe that they are receiving a percentage off the market price of the item.

The "appraised value" of an item used in comparative advertising should mean that the jewellery product has been offered for sale at the "appraised value" for a substantial period of time (more than 50% of the time in the last 6 months), OR a substantial volume of the product (more than 50%) has been sold at the "appraised value" within a reasonable period of time (12 months) in the relevant geographic market.   If this is not so, it could be considered misleading under the Competition Act.

An advertisement may also be considered misleading under the Competition Act if a jeweller were to advertise jewellery products displaying grossly inflated "appraised values".

Consumers need to know: