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Address 1031 South Bluff Street, Suite 116
St. George, UT 84770
Phone 435-414-1404
Email patrick@suappraisals.com
The Appraisal Process
- Step #1 in the Appraisal Process: How is the Appraisal to be Used?
- Step #2 in the Appraisal Process: Gemology/Identification
- Step #3 in the Appraisal Process: Research
- Step #4 in the Appraisal Process: Documentation
How is the Appraisal to be Used?
There are many different types of appraisals and their content and form can alter drastically depending upon the legal scenario that’s involved. Values are assessed in completely different ways as well. Appraisers don’t like those facts but we can’t change the legal reality.
An astute, competent appraiser is going to ask you a number of questions at your initial meeting in order to qualify your needs and clarify what steps need to be taken in order to produce the proper types of documentation. The appraiser will want to know things such as: “Is this for insurance purposes?”; “Is this for the establishment of a trust?”; “Is this a divorce situation?” and so forth.
Be prepared to answer a lot of questions…and be prepared for answers that might surprise you. A good appraiser will commonly tell you things that you might not want to hear, but to do otherwise would be a grave injustice to you, be completely unprofessional, and could lead to some really nasty, unwanted, legal hassles. On the other hand, a competent appraiser might well tell you some really exciting things that you’ve never even considered and bring to light options that you didn’t even know existed!
Once the appraiser has a good idea of your needs, and the situation you are facing, you can then continue the process with a very clear idea of what to expect and an understanding of what you are paying for.
That’s a question that appraisers hear every day. And it’s a good one simply because a very high percentage of our clients truly don’t know what they own! Either they were given an item, found it, or inherited it, and they have no clue as to its true identity. If you own something, and aren’t sure of just what it is, you are in very good company!
Identifying unknown gemstones is a big part of the appraiser’s job…the gemological/scientific side of the equation. If you don’t know what something is, you surely can’t be effective as an appraiser! Most people don’t know it, but gemstones are simply crystals of certain minerals, or rocks of various types, created by Mother Nature (often times under some very unusual and rare geologic conditions or circumstances) and which are then cut and polished by humans to accentuate and show off their beauty. Because of their unique & unusual origins, or genesis so to speak, they turn out to be radically different than most other rocks and minerals.
Typically, “gemstones” share some features in common with one another that set them apart from the rest of the geological/mineralogical world. Traits such as beauty, durability, and rarity are commonly used to define gemstones. From the beginnings of mankind, many beliefs have been attached or attributed to gemstones and those beliefs endure to this day. Some of those traits are due to scientific factors that a gemologist uses to identify an unknown stone.
“You never want to use the words “never” or “always” when talking about Mother Nature’s creations because She can change the rules any time She feels like it!”
That is a rule I learned many years ago. It is vitally important to the gemologist simply because gemstones are some of Mother Nature’s most wonderful creations…but a wise gemologist NEVER takes anything for granted! Many gemstones, which are completely unrelated to one another, share very similar traits and look very much alike. So much so that, even to a trained eye, it can be very difficult to positively identify one gemstone from another. Even gemstones and minerals that have been highly valued for eons, and studied carefully by scientists, occasionally turn up somewhere with new physical or optical traits that have never been documented before!
A gemologist is trained to identify gemstones and other related materials in such a way that no damage takes place: Taking Great Grandma Gertie’s engagement ring stone and grinding it up into powder so it can be analyzed chemically doesn’t go over very well! A gemologist is trained in how to recognize physical traits, optical traits, and certain other features so that the stone’s identity can be ascertained safely without altering a treasured family heirloom or risking damage to a valuable item.
To do that requires a lot of education, some really fancy equipment, and a lot of practical experience. One must have seen, first-hand, thousands upon thousands of gemstones from all over the world, to be capable of recognizing their true identities.
Not only does a gemologist need to recognize NATURAL gemstones (those grown by Mother Nature) but they also need to know how to recognize synthetic or “Laboratory Grown” gemstones (those grown by scientific processes in sophisticated laboratories). Believe it or not, scientists have been growing various minerals for a long, long time. For example, a French chemist, named Auguste Victor Louis Verneuil, learned how to grow rubies in a laboratory in the mid-1880s! Other gemstones and minerals have been “synthesized” over the years and they have dramatically affected our daily lives in many ways other than just for use in jewelry. Synthetic minerals are responsible for laser technology, used as abrasives, used as bearings and for the timing mechanisms in watches, clocks and other high-tech pieces of equipment, in micro-electronics, as well as in numerous military and other industrial applications. Those “laboratory grown” gemstones have been used extensively in fine jewelry for well over a hundred years and turn up daily during the appraisal process.
IMPORTANT NOTE #1: The term “synthetic” does NOT mean “fake”! It refers to a mineral that has been successfully grown with essentially the same physical, chemical, crystallographic, and optical properties as it’s natural counterpart. Think of it much like a baby that is conceived using the in-vitro fertilization process. That’s certainly a REAL baby but it’s NOT a NATURAL baby…it’s technically “synthetic” …the Genesis Process is different!
When it comes to synthetic gemstone materials, due to the fact that they are grown under highly controlled conditions in laboratories, they generally do have some minute variations in one or more physical or optical characteristics…but it takes highly sophisticated equipment and training to identify those differences. That’s a very important part of a gemologist/appraiser’s job: determining origin and the nature of an unknown product.
IMPORTANT NOTE #2: The term “simulant” refers to a product that happens to look like something else…but has no physical, crystallographic, chemical, or optical properties of the product it is intended to imitate. For example: Glass can be made to look very similar to numerous gemstones… including diamonds. Glass can be correctly called a “diamond simulant”. Green glass could be correctly referred to as an “emerald simulant”. Synthetic cubic zirconia happens to have a naturally occurring counterpart (thus the correct name “synthetic cubic zirconia” as opposed to just “cubic zirconia or “CZ”) and they both happen to look somewhat like diamond when cut and polished correctly. It is an effective “diamond simulant”. It is NOT a synthetic diamond!!!
On top of all that, gemstones (both natural and laboratory grown) can be altered or “enhanced” in a variety of ways. Gemstone enhancement/treatment refers to many different processes (“doctoring”, so to speak) which can include dying, bleaching, various chemical treatments, oil/resin impregnation, radiation exposure, and heat-treatment to name just a few. These, and other, “enhancements” alter what a gemstone looks like and can be very difficult to detect. For example: heat. Rubies and sapphires have been subjected to what is referred to as “heat treatment” for centuries. This heat treatment causes various changes in color and/or transparency and can drastically improve the overall appearance of a stone. It can make an ugly, worthless crystal transform into a very beautiful gem! Another example: Emeralds have been seeped in oils for generations. These oils penetrate into the cracks and tiny fissures that naturally occur in emerald crystals and it makes them essentially disappear…or, at the very least, makes them much less noticeable. It’s much like repairing the rock-ding in your car’s windshield…the crack is still there, you just can’t see it anymore! New treatments/enhancements are being devised every day and that means that a gemologist must continually be upgrading their education in order to stay on top of a very dynamic aspect of the jewelry industry.
These treatments can have a radical effect upon monetary value and the appraiser must know of those treatments, or lack thereof, in order to properly assess values. This is true simply because many collectors and gemstone aficionados are willing to pay considerable amounts in order to own a “natural” or “unenhanced” gemstone…it is considered to be more “desirable” and, as such, it increases the gem’s perceived value.
“What if I own some fine Swiss wrist watches? How do we deal with those?”
If your collection of items to be appraised includes things such as fine wrist watches (think Rolex, Cartier, Patek Philippe, Audemars Piquet, Breguet and so forth) those types of items must be properly identified and their authenticity verified. Condition and potential damage must be carefully determined. Any replacement or non-original components must be identified and more. Those types of factors can have enormous effects upon collector values and, as such, what you might pay in premiums to insure such items.
In the case of watches of this nature, it is common practice to send the watch to the original manufacturer for what is called an “Authenticity Report”. There is very good reason to do this for what are referred to as “high-grade” watches. The manufacturers are equipped and prepared to conduct the very, very sensitive work that is necessary when highly complex timepieces are opened and inspected. Often, specialized tools are required and very highly trained specialist watchmakers are needed to properly carry out this type of work. There are certainly some costs involved and it can take a goodly amount of time…depending upon the specific watch model and which manufacturer is involved. Commonly, the manufacturers will require that you have specific maintenance procedures performed (overhauls, parts replacement etc) while the watch is at their factories or, otherwise, they will no longer warranty the watch. Believe it or not, they really do have very good reasons for those requirements and the rules that apply to services on their products.
Unfortunately, counterfeit watches are very, very common. And they are sometimes very well executed and difficult to identify from the real thing! It is also very common to encounter REAL watches with “aftermarket” (think fake or counterfeit) parts and components. This is an insidious situation that pops up all too often when watch owners allow non-certified/generic watchmakers/repair technicians to work on their fine timepieces. It is tantamount to putting cheap, off-the-shelf, mass-produced parts on a Ferrari or Lamborghini! It’s just not smart! Non-original parts can cause all kinds of trouble and serious damage to a fine timepiece’s mechanism which can, in turn, result in very, very expensive restoration processes. Sometimes the damage is so severe that the item is not repairable at all!
Many fine timepieces have tremendous “collector values” associated with them. Antique pocket watches, certain rare models, and certain manufacturers’ names have huge effect upon the collector market (auction market) and properly assessing a value to some timepieces is a very challenging proposition. For example, many Patek Philippe watches manufactured in the 1800’s and early 1900’s will fetch prices into the many hundreds of thousands or even millions of dollars at auction!!!
This is just a very, very brief overview of some of the challenges that appraisers face every day. All this scientific identification and grading work must be done before the 3rd part of the process, “value assessment”, can begin.
A thorough appraiser will look for what are referred to as “comparables”: items that are either identical to, or very similar to, the items in your collection. It is rare to be able to find the exact item. Generally, the appraiser must locate items that are manufactured in similar fashion and have similar types of components of comparable quality.
In the case of one-of-a-kind, custom items, or very old/antique items, it is necessary to look into estate sales, auctions, and so forth, for listings of items that would have similar characteristics to your items. Sometimes that’s a very easy process and sometimes it’s a long, drawn-out nightmare ordeal which can take weeks or even months for very rare items. If you have such an item, be patient and allow the appraiser to do the research necessary to assess a value correctly: taking a “shot in the dark” at a value is not a good idea!
Once all this research is done, and reasonable data has been compiled, your documents can be produced! That’s “step #4”.
All that data is important, and could be a “lifesaver” should you ever need to have a replacement built, or found, due to a loss of some type. It could also aid law enforcement greatly if a stolen item is recovered. Proper identification and documentation of seemingly minute/obscure details could easily lead to a conviction of the bad guys and you getting your original item back!
A proper appraisal will include many things, depending upon the items involved, above and beyond all those details mentioned above. It should also include very good photography: “A picture is worth a thousand words…”, right? Major gemstones should have identifying “plots” or diagrams demonstrating their physical characteristics and any identifying marks.
Once your documents are complete you can then proceed properly and confidently with whatever your situation requires.
Your appraiser will keep copies of everything for many years. They should be kept completely confidential and never be discussed with anyone without your written permission or a valid court order.
IMPORTANT: UPDATING YOUR DOCUMENTS
It is very important to keep appraisals up-to-date! Markets and values change and evolve over time. Generally speaking, you should have major items updated every 4-5 years depending upon economic conditions or changes in your needs. Your appraiser can easily perform updates. The items will need to be inspected for any damage, wear and tear, and so forth. Once condition of the items is determined, updating the documents becomes a relatively minor process/service.