Jewellery Valuation and Appraisal: When You Need It
Most of the time, you know roughly what your jewellery is worth. But there are moments when you need a formal, documented valuation. This guide explains when you need a jewellery valuation, what the document contains, and how it is used.
Insurance
Insurers usually need proof of what your jewellery is and what it is worth before they will cover it, and again when you make a claim.
- For new pieces, your purchase invoice and certificates may be enough.
- For older pieces without invoices, a valuation certificate is often required.
- Because gold prices change, valuations can go out of date. Updating them periodically helps keep your cover in line with the real value.
Read Jewellery Insurance in India: Is It Worth It?.
Inheritance and division
When jewellery is passed down, or divided among family members, a valuation can help:
- divide pieces fairly among heirs,
- document the estate, for legal or family records,
- avoid disagreements, by giving everyone an independent reference.
For heirloom pieces, a valuation can also record details such as gold purity, weight and stones, which may otherwise be lost over time. Read Antique and Old Gold: How to Evaluate Heirloom Jewellery.
Loans
Gold loans are common in India. When you pledge jewellery for a loan, the lender assesses its gold content to decide how much to lend. Lenders typically value only the gold, not stones or craftsmanship, and use their own assessment. Knowing your jewellery's purity and weight in advance helps you understand the offer.
Other reasons
- Selling or exchanging: to understand what a piece is worth before you negotiate. See Gold Buyback and Exchange Policies.
- Legal matters, such as divorce settlements, where assets must be documented.
- Personal records, simply to know what you own.
What a valuation document contains
A proper valuation document typically includes:
- a description of each item, including type, design and condition,
- photographs,
- metal type and purity, with the testing method used,
- gross and net weight,
- details of stones, including type, approximate weight and quality,
- the value, and the basis on which it was calculated,
- the date of valuation,
- the valuer's name, qualifications and contact details.
Ask what type of value is stated. Replacement value (what it would cost to buy a similar piece new) is often used for insurance, and is usually higher than market or resale value (what you would get if you sold it).
Getting a valuation
Choose a valuer with appropriate qualifications and experience, and ask what the valuation covers and how it is calculated. Keep valuation documents with your invoices and certificates. See How to Read a Jewellery Invoice in India.
For questions about valuing your jewellery, message Tibarumal & Sons Jewellers, Shaikpet on WhatsApp at +91 88855 00805.
Visit Tibarumal & Sons Jewellers, Shaikpet
Tibarumal & Sons Jewellers
Shop No. 102, 8-1-299/121, RP Business Park, Al Hamra Colony, Shaikpet, Hyderabad 500008
Hours: Monday to Saturday, 11am to 8:30pm
Phone: +91 88855 00805
WhatsApp: Message us on WhatsApp
Instagram: @tibarumalandsons
