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Jewelry Valuation 101: What Makes a Piece Truly Valuable?
Determining what makes jewelry valuable can be a complex process. Factors like the materials used to create it, its design, the quality of its craftsmanship, and any subjective meaning it may hold are alltaken into account, alongside many others. Keep reading to get a more detailed insight into thecomplexity of jewelry valuation.
Understanding Jewelry Value
Jewelry has three types of value, each serving a different purpose. They are:
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Intrinsic value: This type of value refers to what the materials that go into the jewelry are actually worth.It'sarguably the most straightforward valuation, and you candetermine it by adding the different market valuations for all metals and gems within a respective piece of jewelry.
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Resale value: This is the value of the piece whenattempting to sell it on the open market.It includes factors like its current condition and various market trends that may make it more or less desirable.
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Appraised value: This is the professionally estimated value.It's typically needed for insurance purposes.
What Makes Jewelry Valuable?
The elements that give value to a piece of jewelry are:
Gemstone Quality
One of the mostimportant factors thatdetermines a piece of jewelry'svaluation is thevalue of its gemstones. The gem's type (precious or semi-precious), size, rarity, and origin willdetermine a lot of its value.
Metal Content and Purity
The type and amount of metal used are also major factors. Some high-value metals include gold, platinum, and silver. Their values also depend on how pure they are.
Craftsmanship and Design
While both the gemstones and metals that go into a piece of jewelry have intrinsic value,quality craftsmanship makes that particular piece worth more than the sum of its parts. Unique, high-quality hand-crafted jewelry is usually more valuable than mass-produced one, even if they use the same materials.
Brand Influence and Designer Prestige
While this part of the valuation is subjective, it can still have a major influence on the final price. Jewelry from famous luxury brands typically has a higher resale value than generic ones.
Rarity and Historical Significance
Scarcity boosts value, so a jewelry piece featuringa rare gemstone or pearl can be worth more than a generic onethat's similar in other aspects. This also goes for pieces with a famous story behind them (or famousprevious owners).Based on their historical significance, their value may actually grow over time.
Market-Related and Geopolitical Factors
Market trends can influence jewelry prices. Also, geopolitical events may temporarily disruptspecific diamond, gemstone, or metal markets and affect the price.
Condition and Age
A piece of jewelry with obvious signs of wear and tear typically has a lower value than one in good condition. Thatdoesn't usually apply to vintage pieces, though, asthey're expected to have visible signs of aging.
Making Informed Jewelry Investment Decisions
Investing in jewelry can be a smart investment. It can also be a safe way to transfer assets from one generation to another. However, jewelry valuation can be complicated, soit's usually best to have professionals appraise it before committing to buy a particular piece. Contact Sky Diamonds to get your jewelry professionally appraised by our certified experts today.