By Gary A.
Edited by Brian M.
Published Aug 17, 2021
Edited on Dec 8, 2024
Whether for insurance or resale, getting a professional diamond ring appraisal is essential to understanding its true value and ensuring you’re prepared for whatever the future holds.
Beyond the beauty, brilliance, and breath-taking appearance of any diamond ring, we need to know something far more pragmatic: its numerical value. Whether for insurance purposes, or for us to know what their resale value might be, this number comprises a large part of what a diamond ring really is.
When it comes to calculating the value of your diamond ring for insurance purposes, getting it professionally appraised is vital. The diamond and the setting both carry separate values, but they need to be calculated together – along with a couple less obvious qualities, such as the ring’s original maker, and the craftsmanship behind any intricate features – in order to create a comprehensive picture for the insurer.
A diamond appraisal refers to one of a number of processes used to assign value to a diamond ring. The appraiser’s findings will be detailed on an official document, which can be given to an insurer as proof of value.
In the past, it was standard practice for appraisers to inflate the ring’s true value by up to 100%, meaning that the ring’s owner would presume it was worth far more than it really was – and, for insurers, that they were able to charge a premium on insurance policies.
These days, however – and provided you turn to a reputable assurance lab with an accredited appraiser on hand – you’re likely to get a more accurate valuation.
Before we dive deeper into the specifics, here are some practical tips to help guide your decision-making process:
Now that you’ve got these practical tips, use Jeweler AI below to find the perfect engagement ring that suits your style and budget:
An expert will look closely at the diamond – checking for any inclusions or color, or signs of damage – and the ring itself, to work out a fair value representative of its quality and age.
The diamond will probably be the first thing they look at. The appraiser will want to carefully check the diamond’s cut, clarity, color, and carat weight – just as they did when the diamond was initially sold to you – in order to determine its value separate from the ring.
Similarly, they will appraise the setting – the precious metals used within it, as well as any additional gemstones set around the diamond itself – and, of course, any brand ‘signatures’ engraved onto the inside of the band.
They will then add these two valuations together to create a comprehensive valuation for the entire ring.
Different assurance labs and jewelers will have their own way of costing appraisals. Diamond rings purchased from WillYou will be accompanied by a professional appraisal from GCAL as standard, so you won’t struggle to get the ring insured quickly.
Some jewelers price their appraisals depending on the value of the ring, but we think it’s best to equip our customers with this vital document from the moment they purchase their ring.
Whether you will be able to sell your diamond ring for the appraised value depends on who conducted the appraisal. Some jewelers will still inflate the price or, alternatively, shoot too low as a way of encouraging you to buy from them instead.
The world of fine jewelry is complex, and the average buyer usually has to put a lot of faith into their buyer, since they don’t have decades’ worth of study and experience to support them. As we said, it’s all too easy for someone to inflate (or understate) the results of an appraisal, so only by working with a trustworthy source can you feel sure that the number you’re given is the number you could feasibly get on the secondhand market.
If not, you could find that you’re offered a fraction of what’s printed on your appraisal documents if you ever do decide to sell the ring on.
Diamond rings certainly have a resale value, although this could end up being less than what you paid for it – probably a percentage somewhere below 50%, and maybe as low as 25%.
The exact value of a diamond ring is dependent on a long list of factors, and, as a result, is pretty different to the amount you originally paid for it. That original price will drop after purchase, although diamond’s long-term value will mean that, over the decades, it doesn’t keep dropping.
Diamond rings that were purchased from some of the world’s best engagement ring brands are apt to retain much more value – and to increase over time, provided they are well cared for and still bare the original ‘jeweler’s stamp. There are some horror stories out there from jewelers who have encountered vintage Cartier rings which, due to carelessness during a resizing, have plummeted in value from many thousands of dollars to – another great reason to only shop from reputable sources!
Contrary to popular thought, diamonds themselves don’t often increase in price over the years. The rise of massive online stores using wholesale options for diamonds has altered the entire market, but there will always be value in expertly crafted rings from skilled jewelers.
You should get an appraisal every few years, ideally.
There are so many factors that can impact the value of a diamond ring, like the value of diamond and various precious metals, or the value of a particular brand or jeweler. Some insurers will require regular appraisals so that they can adjust your policy accordingly.
Whatever your reason, if you have found a trusted appraiser to work with, we would recommend returning to them each time you wish to update your appraisal, in order to make sure that your results remain consistent.
There are key differences between appraisal and grading. A diamond grading report follows criteria laid out by the GIA and acts as confirmation that a diamond is genuine and that its quality is consistent with what a seller is describing.
Any diamond you consider buying must have a valid GIA diamond grading report, or you can’t be sure it’s the real deal. You can use our GIA Report Check to ensure any report you view is valid, and not fraudulent.
Unlike an appraisal document, a GIA report does not stipulate a price, so you’ll want to have both in your records.
Regular diamond appraisals are an important part of owning a diamond ring, even if you never plan on selling it. In fact, appraisal reports shouldn’t be used as a gauge for the diamond engagement ring’s resale value; they’re far more useful for calculating insurance premiums and giving you a good idea of the cost a replacement would incur.
Don’t skip this step – and don’t assume it’s not important just because your diamond ring isn’t worth hundreds of thousands of dollars.
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