What's the difference between a Valuation and Appraisal?
Terms valuation and appraisal often used interchangeably for determining the value of gemstone or jewellery item, but there is a difference and it is important to know when a formal valuation is required as opposed to obtaining an appraisal.
Valuation is the calculation and assignment of the gemstone or jewellery item's financial value. Strictly speaking, - appraisal means the judgement, assessment and quantification of the jewellery piece or gemstone. This would include things like the quality and weight of the gold or platinum, the workmanship, the quality of the gemstones, their weight and dimensions etc.
Valuations are required when a definitive value is needed. Reasons for this include obtaining finance from a lending institution or establishing the value for an insurance purposes. A Court may also order that a valuation be obtained as part of the process of resolving a dispute.
Appraisals are only intended as a guide to pricing. Appraisals are estimated by knowledge of the local market and recent sale prices and should only ever be used as an estimate of price. They are not definitive and have no legal standing.