Why Doesn’t My Jewellery Offer Match My Appraisal?

One of the most common questions we hear is:

“My ring was appraised for $8,000. Why is your offer different?”

It’s a fair question, and the answer usually comes down to one important fact:

Not all values are created for the same purpose.

As someone who operated an independent jewellery appraisal laboratory before joining Canada Gold nearly 15 years ago, I’ve examined thousands of pieces of jewellery and countless appraisal documents. Over the years, I’ve learned that understanding the purpose behind an appraisal helps make the selling process much less confusing.

Whether someone is selling a single ring or an entire estate, every piece has a story. Some clients are downsizing. Others are settling an estate, navigating a divorce, updating their style or simply deciding it’s time to turn jewellery they no longer wear into cash.

No matter the reason, my goal is always the same: to provide honest information, explain how we evaluate jewellery and help clients make the decision that’s right for them.

Why appraisal values and selling values are different

When clients bring in diamond or gemstone jewellery, they often compare our evaluation to the value shown on an appraisal document.

In reality, both numbers can be accurate because they’re measuring different things.

There are three common types of jewellery values.

Retail Replacement Value

This is the value most commonly found on insurance appraisals.

It estimates what it would cost to replace the item with one of similar quality through a traditional retail jewellery store.

When determining this value, an appraiser may consider:

• Craftsmanship
• Design and era
• Precious metals
• Diamond and gemstone quality
• Brand names
• Provenance
• Whether the piece is custom or one of a kind

Because it’s based on replacing the piece at retail, this is typically the highest value you’ll see.

Fair Market Value

Fair market value represents what a knowledgeable buyer might reasonably pay for the jewellery in today’s secondary market.

This is the type of value you might expect to see through estate jewellery dealers, auctions or reputable pre-owned jewellery retailers.

It reflects real market demand rather than new retail pricing.

This is also where exceptional pieces can stand apart. Antique jewellery, designer brands and highly desirable diamonds may command premiums beyond the intrinsic value of their materials because buyers are willing to pay more for them.

Liquidation Value

Liquidation value focuses primarily on the intrinsic value of the materials.

For many gold transactions, this means evaluating:

• The weight and purity of the gold, platinum or silver
• The current precious metal market
• Any additional value for diamonds or gemstones

This is often the fastest way to convert jewellery into cash and forms the basis of many buying transactions.

How we evaluate jewellery at Canada Gold

Every piece is different.

While many items are purchased primarily for their precious metal value, we don’t automatically treat every piece as standard jewellery (in the industry, this is often called scrap, or priced for its liquidation/melt value).

If a piece has characteristics that make it desirable for resale, such as antique craftsmanship, exceptional diamonds or gemstones, designer brands or unique styling, we’ll evaluate those factors as well.

When appropriate, we can offer premiums above melt value because we’re evaluating the piece as jewellery, not simply as metal.

We’ll also explain how we arrived at our offer, discuss current market conditions, and answer any questions along the way.

Knowledge helps people make confident decisions

Sometimes our explanation confirms that selling today makes sense.

Sometimes it helps someone decide to keep a treasured family heirloom.

Either outcome is perfectly fine.

Our goal isn’t simply to buy jewellery. It’s to ensure every client understands what they have, how it’s being evaluated and why different values exist.

The more information we can provide, the more confident our clients can feel in making the decision that’s right for them.

Written with insights from Rachel Cohen, G.G., A.J.P. (GIA), whose experience includes operating an independent jewellery appraisal laboratory before joining Canada Gold nearly 15 years ago.