Jeweller - May 2021

OPINION
Soapbox
Dispelling the myths and misconceptions
about jewellery valuations
RIKKI MCANDREW explores how jewellery valuations have evolved over time and
what jewellers and consumers can expect from a modern valuation.
As with most industries, jewellery
valuation has been affected by the
advances in technology in recent years
and valuers have had to learn a host of new
skills – to the benefit of jewellers and their
customers alike.
In days now long gone, producing valuations
was a very different proposition. We didn’t
have access to the technology we do today
– including computers and digital cameras –
so many older valuations are simply written
documents without images.
What’s more, the descriptions in these older
valuations often lack detail, leaving too much
room for misinterpretation and guesswork.
The terminology used could be quite
confusing to the layman, if not the trade;
an old valuation might include a diamond
colour described as ‘Jager’, ‘river’, ‘(top)
Wesselton’ or ‘(top) cape’, rather than the
alphabetical system in use today.
However, since the foundation of the
National Council of Jewellery Valuers
(NCJV), a system of standardisation is in
place and continuously being improved.
All jewellery valuations today must have a
photograph and a full description, including
weights and measurements – which are also
frequently missing from old valuations!
In terms of implementing these standards,
the NCJV was the first jewellery valuer
organisation in the world to develop its own
accredited valuer course.
Valuations are a critical source of
information when it comes to identifying
lost and stolen jewellery, especially
when there is a dispute of provenance or
ownership, or a police investigation.
It is hard to argue against anything unique to
an item such as a hallmark, an engraving,
a chip, or anything else that the valuer
observes and notes in the valuation.
Of course, while valuations have come a long
way, there are still limitations; for example,
a set diamond can’t be graded higher than
a G colour, therefore it may be necessary to
remove the diamond for a more accurate
grading as this could significantly impact the
value of the overall piece.
For this reason, it is necessary to educate
consumers on this point and advocate for it
to be done routinely.
As retailers are often the ‘middleman’
between consumers and valuers, the trade
should also take these factors into account
when advising their customers.
There are a few other misconceptions that
aren’t immediately obvious, but should be.
Firstly, a valuer can’t simply look at a piece
of jewellery and give a dollar value – nor can
a professional valuation determine a piece’s
previous retail value or its guaranteed
second-hand/resale value.
Valuations act as a reliable source of
information which can then be interpreted
as the basis for determining a second-hand
value. Put simply, a seller must know and
understand the market for the piece; the
valuation simply tells them exactly what it is
they are selling!
A retail price can then be developed that
includes a standard mark-up – something
that is not taken into account in a valuation.
Valuations of the same piece by different
valuers almost certainly won’t have the
same dollar value.
Another important point is that valuers
rarely have an advertised price list. One of
the main reasons for this is variation – each
valuation is unique, and while an average
All jewellery
valuations
today must have
a photograph
and a full
description,
including
weights and
measurements
– which are
also frequently
missing from
old valuations!
valuation takes one hour to complete, some
can take eight hours or more!
For more complex valuations, a piece of
jewellery may also need to be shown to
other valuers, wholesalers or antiques
dealers for a second opinion.
As a result, the NCJV does not monitor
prices nor recommend a price range to its
registered valuers.
Still, it’s a question often asked, by jewellers
and consumers alike: how much should a
valuation cost? It’s similar to asking, how
long is a piece of string?
When developing their price structure,
valuers will take into account the cost
of purchasing and maintaining their
gemmological equipment, indemnity
insurance, continuing professional
development, subscriptions to price
guides and sales realisations, and NCJV
membership fees.
NCJV-registered valuers are professionally
trained, and they deal in facts, not hopes
or wishes. At the end of the day, the valuer
signs a document which can be admitted to
court; they can’t take into account what the
client believes to be true, or what they were
told when they bought a jewellery piece.
There are still some in the jewellery
industry who lack knowledge or experience
with valuations, and this is where problems
regularly arise. But there is no excuse
for ignorance – and that’s what jewellery
valuations are designed to prevent.
Name: Rikki McAndrew FGAA Dip DT
Company: McAndrew Jewellery, and
Australian Jewellery Valuers
Position: Director
Location: Melbourne, VIC
Years in Industry: 48
57 | May 2021