LIMITING CONDITIONS
The process of appraising jewelry results in an estimate of judgement of value; therefore, an evaluation is
subjective. Estimates of value may vary from one appraiser to another and such a variance does not
necessarily constitute error on the part of the appraiser, but is rather an indication of difference or
deficiencies in the chosen approach to market analysis.
Our appraisals are not intended to be used as the basis for purchase or sale of the items set forth herein
and is provided solely as an estimate of approximate values. The values represented herein are based
upon the appraiser’s best judgement and opinion and are not a representation or warranty, implied or
expressed, that the item will realize that value if offered for sale.
Photographs in this report are not to be used as an accurate guide to color representation or size. They
represent design only.
The information in our appraisals is confidential between the client, appraiser, and potential third parties
such as legal or financial advisors. Third parties may rely on the information in this report for the defined
purpose and intended use only. Third parties requiring further information than what is stated in the
report must obtain written permission of the owner of the appraisal before the appraiser will discuss the
report.
Possession of the report or any copy thereof, does not include the right of publication. The reports in their
entirety, or any part, including the identity of the appraiser, or his firm, shall not be made public through
advertising, public relations, news releases, sales, or other distribution of information media without the
written consent of the appraiser. Our reports are made at the request of the party whose name appears on
the appraisal document for his/her use. It is not an indication or report of title or ownership.
No changes may be made to the report by anyone other than the appraiser. The appraiser is not
responsible for unauthorized alterations.
Fees paid for the appraisal do not include the services of the appraiser for any other matter whatsoever. In
particular, fees paid to date do not include any of the appraiser’s time or services in connection with any
statement; testimony or other matters before an insurance company or any court in connection to the
property herein described. Fees paid for the additional services will be at the current rate with an
estimated fee paid in advance.
CERTIFICATION STATEMENT
The statements contained in these reports and upon which the opinions expressed herein are based, are
true and correct to the best of his/her knowledge and belief. That no direct or indirect interest exists; that
the appraisal fee is not contingent upon values stated herein, that this report is not an offer to buy or sell
item at any price. Valuations stated are based upon items of comparable or identical quality or condition,
available in the wholesale or retail marketplace, depending upon the purpose and function of the
valuation. These reports have been made in conformity with the requirements of the Code of Professional
Ethics and Standards of Professional Conduct of The American Society of Appraisers and the National
Association of Jewelry Appraisers.
APPRAISAL PROCEDURES & MARKET ANALYSIS
Unless otherwise stated, all gemstones are graded and evaluated in their mountings and only to the extent
that the mounting permits examination. Approximate weights are formulated by measurements and are
estimates only. Grading nomenclature used for diamonds, colored gemstones and pearls are those used in
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the system developed by the Gemological Institute of America (GIA). Diamonds are graded with the use
of pre-graded permanent master color comparison stones and the grading nomenclature prescribed by the
GIA.
All stones are evaluated from data collected from actual transactions, average cash prices dealer to
jeweler, jeweler to consumer and information provided by the Rappaport Diamond Report, Palmieri’s
GAA Market Monitor, The Guide, Polygon Computer Network and the Jewelry Judge. Sources are
assumed to be reliable and the appraiser does not assume responsibility for their information. Since great
variations of supply and demand of various precious gems occur periodically and disrupt the orderly
market, sharp variations in dealer cost are likely to exist.
Unless otherwise stated, all colored gemstones listed in this appraisal report have probably been subjected
to a stable and possible undetectable color enhancement process. Prevailing market values are based on
these universally practiced and accepted processes by the gem and jewelry trade.
Identification of metals and methods of construction are determined only to the extent that the item
permits. Unless otherwise stated, when items are marked with the fineness of the metal, the appraised
value is based upon the marking and are assumed to be consistent throughout. When there is no marking
on an item, the method used to estimate the metal content is electronic metal testing.
Periodic review of appraisal values is recommended due to economic fluctuations. The appraiser is not
responsible for advising clients when values have changed; clients must establish their own appraisal
value review criterion.
To value an item a market (and market level) must be recognized. The values are based on current market
information in the regional marketplace and no opinion is expressed as to any long-range future value nor
as to any past value. Analysis is based on current market conditions without taking into account possible
influences to the market caused by changes in fashion, economics, or political events, which could occur
after the date of the appraisal. Considerations made in the determination of dollar value include: weight,
clarity, color, saturation, tone, quality of cut, gemstone desirability, designer/artist/manufacturer,
trademark, hallmark, type of manufacturing, quality of craftsmanship, design, execution, physical
condition, repairs needed or performed, supply and demand, metals quote as of the date of the appraisal.
(www.kitco.com)
Whenever possible current replacement prices are obtained from those manufacturers who trademark their
work. When that information is not available, a fair and accurate replacement value of a comparable item
is provided.
In order to maintain our knowledge of the secondary market, we visit estate jewelry stores, consignment
stores, personal sales, and local area auctions. We are familiar with several dealers who buy secondary
market jewelry and we maintain auction sale catalogs.
SUBSCRIPTIONS/BOOKS FOR VALUE CONSULTING
Drucker, Richard— The Guide. Northbrook, IL
Romero, Christie—Warman’s Jewelry Identification and Price Guide. Iola, WI
Levine, Gail— Auction Market Resource for Gems and Jewelry. Rego Park, NY
Kaplan, Arthur—Antique Jewelry. New York, NY
Depending on the circumstances of the individual item(s) of jewelry and the market conditions prevailing
at the time of the appraisal, replacement value for insurance purposes may be estimated using the market
data comparison approach and/or the cost approach. The income approach does not apply.
EQUIPMENT
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Gemological binocular microscope
Digital millimeter gauge
Table millimeter gauage
Refractometer
Polairiscope
Dicroscope
Chelsea color filter
Metal acid testing kit (10KT, 14KT, 18KT, 22KT, & Platinum)
Electronic metal content tester
Carat weight/ Gram scale
2 channel OGI proportion analyzer
GIA diamond color master set (E, G, J, L, M)
CZ color comparison set (E, F, G, H, I, J, K, L, M, N)
Diamond grading light
Photoscribe LMS550 Cold Laser Marking System
Photo light box
Nikon 8 megapixel digital camera
Olympus digital camera
Gran DC3000 Colortimeter
GemE Wizard gemstone comparison software
Fiber Optic light
UV (Short wave and Long wave)
Hearts & Arrows scope
THREE TRADITIONAL VALUATION APPROACHES
Comparative Market Data Approach: This is the most commonly applied approach when appraising
personal property, in which appraised value is based upon past prices for similar works by the same artist
or artisan, or similar works by another artist or artisan of equal standing and related reputation.
Income Approach: This is used to determine the value of a work of art or object, which will be used to
generate future income, most commonly through leasing, rental, or reproduction, but not through a onetime-only sale with transfer of title and/or copyright.
Cost Approach: This is used to determine the value of a work of an object based upon the cost of
duplicating or recreating an identical piece. This approach may be applied to the decorative arts when the
method of construction or materials used is replicable and of significant inherent value. This approach is
never applicable to fine arts in which the value of the item being appraised is unaffected by the lack of
inherent value of the materials used in its creation (e.g. paint, canvas, paper, etc.).
Appraisal Types
APPROXIMATE REPLACEMENT VALUE FOR INSURANCE PURPOSES
The object of an insurance appraisal is to establish an accurate insurance position and provide sufficient
support in the event of loss, or if repair of damage becomes necessary.
The valuation will give the approximate cost of replacing or recreating the gem or jewelry article as
closely as possible. In order to accomplish this, the appraisal will take into consideration today’s market
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prices as well as current costs for labor, materials, creative design, certification, and the precious stone
and metal markets.
APPROXIMATE REPLACEMENT VALUE FOR INSURANCE PURPOSES CONTINUED
Costs and margins may differ substantially from retailer to retailer based on their locality, various services
offered and marketing methods. This information is accumulated by national and/or local survey.
Averaging these costs and margins will result in an estimated retail replacement value for insurance
purposes. These values are not for investment purposes, nor are they an endorsement of the price you
should pay. The article(s) are appraised based upon final consumption by the consumer at the retail level.
These values are the appraiser’s best judgment and opinion and are not a representation or warranty that
the article(s) will realize that value if offered for sale at auction or otherwise.
NOTE: Most insurance policies contain an option which will allow the insurance company to replace
your lost or damaged gems or jewelry with “similar” items. Therefore, the more descriptive the appraisal,
the more certain you are of receiving proper replacements. For your own protection, the gemological
appraisal should virtually fingerprint your gem(s) and jewelry. It should include your stones cut, color,
clarity, weight and positions of identifying characteristics. Precious metals should be identified and
weighed. This type of descriptive appraisal will reinforce your protection and will make sure you are
covered for truly similar gems and jewelry. An explicit accurate description is as important for your
protection as is the estimated retail replacement value.
LIQUIDATION VALUE FOR THE PURPOSE OF “FORCED SALE”
This value reflects estimates of the current liquidation value of the items set forth herein, in their present
condition and do not represent the replacement value of similar merchandise. The term “liquidation” as
used herein, is defined as the approximate price at which such property could be sold to a retail
establishment in the business of buying such merchandise, the seller being under compulsion to sell.
Estimates of “forced sale” value may vary from one appraiser to another. Such variance does not
necessarily constitute error on the part of the appraiser, but rather is indication of differences or
deficiencies in the chosen approach to market analysis.
FAIR MARKET VALUE
A Middle Second Market Value as defined by the IRS Section 1.170 and 20.2031 (b) is "the price at
which the property would change hands between a willing buyer and a willing seller, neither being under
any compulsion to buy or to sell and both having reasonable knowledge of relevant facts." 20.2031 (b)
continues, "The fair market value of an item of property includible in the decedent’s gross estate is not to
be determined by a forced sale price. Nor is the fair market value of an item of property to be determined
by the sale price of that item in a market other than that in which such item is commonly sold to the
public, taking into account the location of the item wherever appropriate. Thus, in the case of an item of
property includible in the decedent’s gross estate, which is generally obtained by the public in the retail
market, the fair market value of such an item of property is the price at which the item or a comparable
item would be sold at retail." (Treasury Regulation Section 1.170A-13, (C) (3) (1988)) *The following
values are subject to limiting conditions with regards to any changes that may occur in Treasury
regulations, IRS rulings and IRS procedures.
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