A fine jewelry appraisal serves different legal and financial functions depending on whether it is prepared for insurance scheduling, estate division, or secondary market resale.
1. Appraisal Types & Valuation Methodologies
| Appraisal Purpose | Valuation Standard | Intended Use | Typical % of Retail New |
|---|---|---|---|
| Insurance Scheduling | Retail Replacement Value (New) | Full replacement by insurer after theft/loss | 100% – 120% (Includes custom bench labor) |
| Estate Tax & Probate | Fair Market Value (FMV) | IRS tax reporting; willing buyer and seller | 40% – 60% of original retail |
| Immediate Cash Liquidation | Wholesale Scrap / Melt Value | Selling to dealers or pawn exchanges | 20% – 35% of retail price |