Not All Jewelry Appraisers Are Equal

How do I Know if an Appraiser is a Qualified Professional?

We seek professional appraisers for a variety of reasons.  Most often it is for insurance purposes.  But appraisals are also needed for legal and tax reasons such as divorce, litigation, damage, estate planning/equitable distribution, donation, taxes, and resale to mention a few.  How do you know if the appraiser is a qualified professional?  How do you choose a qualified professional appraiser???

 

Unfortunately, ANYONE can profess to be a personal property appraiser.  It is an unregulated industry.  Working within the jewelry and coin industry, buying and selling jewelry, watches, and coins does not make one an appraiser, nor should appraising be treated as an inalienable right that comes with working in the jewelry and coin industry. Appraising is a profession, just as a doctor, lawyer, or CPA, where one must be educated and tested. Unfortunately, there is no overseeing body to regulate the industry.  However, there are ways to find a qualified professional appraiser.

 

Like a doctor, attorney or CPA, a professional personal property appraiser will have a high level of education, experience and product knowledge. A professional will have taken and passed courses and prescribed examinations in evaluation and valuation, principles and business practices, appraisal ethics, standards and report writing. This type of professional will also keep up with the standards and changes through rigorous continuing education. Accredited or Certified status by a professional appraisal organization is a good indicator of the appraisers’ commitment to their clients. 

 

Should you need an appraisal for IRS tax purposes, the IRS has defined what the qualifications an appraiser needs in Publication 561 in order to be considered ‘qualified’. 

 

“Has earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or

 

Has met certain minimum education and experience requirements. For real property, the appraiser must be licensed or certified for the type of property being appraised in the state in which the property is located. For property other than real property, the appraiser must have successfully completed college or professional-level coursework relevant to the property being valued, must have at least 2 years of experience in the trade or business of buying, selling, or valuing the type of property being valued, and must fully describe in the appraisal his or her qualifying education and experience.”

 

In the same publication, the IRS also states:

 

“Jewelry and gems are of such a specialized nature that it is almost always necessary to get an appraisal by a specialized jewelry appraiser. “

 

Simply being a Graduate Gemologist does mean the person is qualified to write jewelry appraisals.  A gemologist is one who studies gemstone identification and grading.  The highest diploma you can obtain from the Gemological Institute of America (GIA) is a Graduate Gemologist (G.G.).  Many gemologists get their G.G. diploma through correspondence education, as opposed to obtaining classroom education at GIA’s New York or California campuses.  Ask the appraiser if they received their education from a correspondence course.  It is also important to know GIA does not “Certify” anyone or anything.  There is no such designation as a “Certified Gemologist” from GIA.

 

Once they have their diploma, most Graduate Gemologists never see the inside of a gem classroom again.  And considering how many changes occur in the gem and jewelry industry each year, it is not possible to maintain one’s gemological expertise if you do not take any continuing education courses.  Look beyond the diploma; ask what additional gemological training and education they have.  A good jewelry appraiser will be someone who can document their continuing educational studies to make sure they keep up with the latest developments in the jewelry and gemstone industry.

 

A professional, qualified jewelry appraiser will have a high level of education backed with a high degree of experience and product knowledge. They will have knowledge and experience with jewelry manufacturing methods and craftsman techniques (both historic and current).  A professional will have taken and passed courses and prescribed examinations in evaluation and valuation, appraisal ethics, standards and report writing, and undertaken peer review of their appraisals.  They will be certified/accredited by a nationally recognized appraisal association, such as the American Society of Appraisers, the National Association of Jewelry Appraisers, or the International Society of Appraisers. 

 

Not all appraisal associations are equal.  There are many organizations and societies which issue their membership a title simply by paying dues or sitting in on a few-hour lecture and taking a less strenuous ‘exam’.  There are a lot of designations used by appraisers, far too many to list here.  If an appraiser represents a title to you, find out what it means and how it was earned.  Ask them what their level of membership is within the organization and what it took for them to earn that level of accreditation.  Ask them what their association’s continuing education requirements are and do they need to take periodic re-examinations or reviews in order to maintain their level of certification.  IRS qualified appraisers with designations from nationally recognized appraisal associations require all the above.  You should require no less. 

 

Here are the highest designations from some of the nationally recognized jewelry appraisal associations:

 

Master Gemologist Appraiser®                       American Society of Appraisers

Certified Master Appraiser                              National Association of Jewelry Appraisers

ISA CAPP                                                             International Society of Appraisers

Certified Member                                             Appraisers Association of America

 

Bottom line, it is up to you to protect yourself.  Choosing a jewelry appraiser is like picking a doctor or dentist.  You spent thousands of dollars acquiring some of the most important items in your lifetime.  It is always better to hire a professional now than to find out down the road that some of the most expensive and sentimental items you will ever own are not properly protected.  Protect yourself.  Hire a qualified professional appraiser.