Determining the value of jewelry isn’t a very straightforward process. There are so many factors to consider such as the spot price of gold, the value of the diamond (which is determined by the famous 4 C’s) or other gemstones in the piece, and any extra value from antique or well-designed jewelry. For simplicity’s sake, jewelry appraisers value jewelry based on two standards: the intrinsic value and the resale value.

Intrinsic Value

The way intrinsic value is calculated is based on the current market prices of the metal and the gem used in the jewelry. The formula is very basic: (Metal value + Gem value = Intrinsic value). It is essentially the cash value of a piece if its components were separated. Precious metals such as Gold, Silver, Platinum and Palladium have their prices listed on market indexes and are easy to follow. The value of diamonds is determined by its 4C’s (cut, clarity, color, and carat) and needs to be assessed by a professional. The value of gemstones is a lot more difficult to come across and will be determined by market availability, demand, and certifications. Most often it will be decided at the discretion of the appraiser but can be based on the value of similar stones on the market.

An example for calculating the intrinsic value of a gold bangle:

1. Get the gold spot price for the day (let’s use \$1300/oz.).
2. Convert that into dollar price per gram by diving it by 31.1, so now we have \$41.80 per gram.
3. Multiply that by the percentage of the jewelry’s purity. If you have an 18K bangle, that’s 75% gold. So, \$41.80 x 0.75 = \$31.35 and you get the value per gram.
4. Multiply it by the gram weight of your piece, if it is 8 grams you have: \$31.35 x 8 = \$250.80.

Note: this calculation only provides the market price for the raw material and doesn’t consider mark-up, production, and other associated costs.

GIA is the most popular diamond certification and is what many jewelers will use to price the value of an actual diamond.

Resale Value

Resale value takes into account a jewelry piece’s intrinsic value and adds value to the workmanship that’s needed to create the jewelry. There isn’t an exact way to determine resale value. The history of a piece of jewelry could also greatly improve its resale value due to its fame. Examples of this would include the British Royal Jewels or the jewelry collection of Elizabeth Taylor. It is easiest to determine the resale value with high-profile jewelry brands such as Cartier, Tiffany, or Bulgari because there is a baseline price to work with.

If you want to sell your gold jewelry but are having difficulty with appraisals and are looking for a good buyer you can sell it or have it appraised easily online with a service like Cash for Gold Mailer. The company provides an appraisal kit that determines how much your gold is worth, giving you a fair price for it.

When it comes to diamonds, Top5cashfordiamonds.com provides top-quality assistance in selling your diamonds. They compare information among the top 5 online diamond dealers to get you the best price for your diamonds while working with reputable buyers and trained assessors. Most of their providers have a free diamond valuation service where you can enter the information about your diamond and get a quote back.

Jewelry Appraisers – Values of Gold, Diamonds & Other Jewelry