Pearl Appraisals: How To Appraise and Insure Your Pearls Without Getting Ripped Off
Tuesday, March 6th, 2012Pearl Appraisals Can Be A Tricky Business: How To Get Your Pearls Appraised Without Getting Ripped Off
If you are investing in fine pearls you should have them independently and professionally appraised for a few reasons.
- To ensure that the pearls you bought are what was represented by the jeweler in the bill of sale.
- To ensure that you paid a fair price so that you can exercise your guarantee if necessary.
- To ensure that you have the necessary insurance in the event of loss or theft.
It is especially important to get an independent appraisal by a qualified appraiser. It is common practice for jewelers to provide their own “retail” appraisals at 2-3 times the price at which they are selling the item. This makes customers feel like they are getting a deal. If these inflated appraisals were real we could go into business buying jewelry and reselling it for twice what we paid. If you make money with this strategy you will be the first.
At Seabourn Pearls we don’t provide appraisals. Rather, we give our clients an unconditional money back guarantee and refer them to the national trade associations for professional jewelry appraisers. Why would you care what I say the pearls are worth? You want an independent, professional appraisal of your new pearls. Would you value a car based upon what the dealer tells you it is worth? When you buy pearls get a detailed bill of sale backed by an iron clad, no hassle guarantee and then get your own appraisal.
Using your appraisal for insurance purposes is a bit trickier. Shocking, I know, because insurance companies usually make things so easy.
Last week I got a call from a client whose husband had bought a rock star strand of fat aubergine Tahitians from me. These were BAPs (Bad Ass Pearls). She was excited because the pearls she bought for $8,000 had been appraised for insurance purposes for $18,300.00. We sell wholesale direct so this is not unusual.
But here’s the thing. Most jewelry insurance policies allow the insurance company to exercise a replacement option. The insurance company collects the premium on the appraised value of $18,300.00. If my client’s house burns down or someone steals her pearls the insurer does not promptly mail her a check for $18,300.00. Rather, they examine the information provided in the appraisal (and it had better be thorough, detailed and supported with photographs if you expect to get back something close to what was lost) to then source a “like kind” replacement. And trust me, they know where to buy it for a helluva lot less than 18 grand.
But, if you’re reading my blog, so do you. What I told my client was this: don’t pay the premium for an $18,300.00 policy if you can buy a “like kind” replacement from SeabournPearls for $8,000.00. Instead, shop your appraisal until you find an insurer that will sell you a “cash value” policy for $8,000.00.
Here’s what you need to know about pearl appraisals:
- You need a pearl appraisal from the seller like a fish needs a bicycle. Get your own appraisal.
- You want an independent, 3rd party appraisal from a qualified professional. Call the American Society of Appraisers at (703) 478-2228 and ask for a referral to a Master Gemologist Appraiser in your area. Seabourn Pearls recommends the Jewelry Judge.
- Jewelers sell jewelry. Jewelry appraisers appraise jewelry. Selling jewelry does not qualify one to appraise jewelry.
- A proper pearl appraisal provides a complete description of the item including:
- Type of clasp or setting
- Whether pearls are natural or cultured
- Type of pearl (Tahitian, South Sea, Freshwater, etc)
- Shape (Round, off round, baroque, etc)
- Color and Orient
- Luster
- Complexion (surface quality)
- Size of pearls
- For strands, the length, number of pearls, knotted or not, matching
- Pictures of the item
- Understand what kind of insurance you are buying. Most jewelry insurance policies include a “replacement option.” In effect you buy $20,000 of coverage for something that costs the insurer $5,000 to replace.
- Buy your pearls wholesale direct from Seabourn Pearls and use your favorable 3rd party appraisal to buy “cash value” insurance that allows you to pay a lower premium and source your own replacement.


Seabourn Pearls: “And diamonds?”
















