Insured Value VS. Cash Value Gold Jewelry

Making Sense of Valuations When Selling Your Gold and Diamond Jewelry

Gold buyer in Chicago

Gold buyer in Chicago

If you’ve inherited a diamond ring, gold necklace or other diamond jewelry, you may decide to keep it, or you may opt to sell the item hoping to get an honest and fair price for it. Knowing the cash value gold jewelry will insure that you get the most cash for your gold and diamond jewelry. The first step when you decide to sell your used gold jewelry is to have it professionally appraised. A professional appraisal will help you know what you are selling and give you peace-of-mind knowing you got a fair price for your gold. Although getting the item appraised may sound like a simple process, determining the value of an item can often be confusing. That’s because in the appraisal business, gold and jewelry has not one, but two values.

Selling a diamond engagement ring in Chicago. Cash Value Gold Jewelry

Tiffany Diamond Engagement Ring

The “insured value” equals the “replacement value”

First, there’s the “insured value” of your jewelry, which is actually what it would take for you to replace a gold necklace or diamond ring if it is destroyed or stolen. According to Antiques Roadshow appraiser, Kerry Shrives “Insurance values tend to be set at the top end of retail value so that those who need to replace goods lost to theft or to accident will have enough insurance money to buy an equivalent item from a jewelry store at current prices. An insurance value is based on the price you might pay for your gold and diamond jewelry if you were to buy it new — usually not the price you might get the same item if it were second-hand. Insurance values are actually formal written appraisals, which are carefully researched and hold up to legal challenges.”

 “Cash value” equals the actual selling price

The cash value gold jewelry is what you would expect to get for your gold jewelry if you were to sell it today for cash. It’s also called the fair market value, and it represents the item’s value in its current (used) condition. The thing to keep in mind is that the “cash value” will almost always be less than the insured value. That’s because the insured value often reflects the cost to replace a used item with a new equivalent.

 How does an appraiser value your gold jewelry or gold watch?

If you’re selling your gold jewelry, it’s wise to bring the item and any documentation you may have about the piece to the appraisal meeting. The appraiser will derive a selling price by asking the following 5 questions:

  1. What is the clarity and quality of the stone(s)?
  2. What is the size and cut of the precious stones?
  3. How old is the item, or what period was it made?
  4. Who made the item? Was the piece created by a famous designer like Rolex or Tiffany?
  5. Are there any imperfections or damage to the piece?

How do you find the cash value gold jewelry?

If you’re looking to have your jewelry appraised, it’s best to go to an experienced gold buyer, one who specializing in buying gold jewelry. At Cook County Gold Buyers, we believe in full disclosure with our clients, and we are here to assist you in getting the highest value you can attain for your gold jewelry items. Owner, Mike Jacobson will appraise your diamond ring in your presence, and if you decide to sell, Mike will pay you the most cash for your gold. If you are ready to sell your diamond ring, then call the Cook County Gold Buyer today at (773) 490-9828. You can find us online by clicking here.