The Story of a Family Heirloom Diamond: From Earring to Engagement Ring

Question
Hi,

When I graduated high school, my mother gave me a necklace set with a diamond that belonged to my great grandmother. Actually, it was a pair of diamond earrings that belonged to her sister, that she inherited upon her death. When my great-grandmother died, my grandmother had the earrings set into a ring for my mother. My mother split the diamonds back up and gave one to me and one to my sister. I have now had the diamond set in my engagement ring. The diamond was obviously owned before GIA started certifying diamonds, and I never thought about having it certified. After the ring was complete the jeweler, who is a small independent jeweler that I trust and use alot, appraised the piece for insurance purposes. He said the diamond was european cut SI-1, I to H in color and .34 carats. The retail value of the setting was $1500 and then the stone was added to it and the whole ring was appraised at $3250. Is it acceptable to just have this appraisal as to the value of my diamond instead of a GIA certification. Obviously, the appraisal proves the diamond is real, gives the important information (that he had no incentive to "bump up"), and tells the value for replacement purposes. I would never resell the diamond, so is this appraisal good enough?

Answer
Hello Megan, Yes this appraisal is good enough for insurance replacement value only. You must be aware though that you will be paying insurance premiums on that amount and if ever you lose the item the insurance company has the right to shop their sources to replace the item at their cost rather than just give you a check forwhat the item is appraised for. This policy varies widely in the insurance business so check out your policy carefully. make sure they have an accurate photograph of your item too. If you ever need to sell the item you will only realize 1/4 to 1/2 the appraised value at auction so if this scenario ever arises it is best to sell the item to a private party. Good luck.

Steve Kretser