Factors that influence the value of jewelry

Brand name products (for example, televisions, appliances and computers) are all priced the same by the manufacturer with a suggested retail price for each particular model. In addition, each product model produced by a manufacturer should be identical. So, when you comparison-shop the price of an IBM laptop model XYZ from store to store, you know the features and quality of that laptop are the same, regardless of the final price.

By comparison, jewelry, for the most part, is unique. There are many factors that affect the price of gemstones and jewelry. No two gemstones are exactly alike, nor are any two antique diamonds rings alike. For example, the quality of each stone in an antique ring is a factor in determining its value. The quality of workmanship and the company who produced the ring affects value as well. For example, a Tiffany & Co. antique ring will demand a much higher price than a similar ring made by an unknown company.

Below are some factors that affect the value of jewelry.

Certification:
Gemstones can be certified through independent grading laboratories. The three most respected are the Gemological Institute of America (GIA), International Gemological Institute (IGI), and the European Gemological Laboratory (EGL). Although certified stones may cost more, the piece of mind they bring may be well worth the cost.

Craftsmanship:
How well a piece of jewelry is made can greatly affect the value. Differences in the maker's attention to fine details and the finish can cause two similar pieces of jewelry to be valued quite differently.

Condition:
Jewelry that has all its original parts and has no damage is obviously more valuable than jewelry that has been repaired or had parts replaced. Check to see if jewelry has chips, dents, cracks, metal corrosion, or any other type of damage. Look for evidence of repair, like lead solder on precious metals.

Color:
Especially for costume jewelry, you may want to consider whether the color is fashionable. Some colors are considered more valuable than others. In gemstones, some colors are more desirable than others. For example, with all other factors being the same, "colorless" diamonds are more valuable than yellow diamonds.

Design:
The aesthetic appeal of jewelry is highly subjective, but it can easily influence the value. If the jewelry can be attributed to a style from a particular period or to a particular maker, that can also greatly affect the value.

Demand:
Similar to many collectibles, jewelry also has its collecting fads and fashions. For example, the butterfly motif was quite trendy in the fashion world, and likewise, there was an increase in visibility of butterfly-inspired jewelry.

Naturalness:
Some gemstones can be altered to seem like more high-quality gemstones. These altered gemstones are generally considered less valuable than naturally occurring, high-quality gemstones. Do you know the difference in terminology between a "real" sapphire or ruby versus a "natural" sapphire or ruby? According to the Federal Trade Commission (FTC), a lab-created ruby or sapphire can be called "real" even though the stone was created in a laboratory at a fraction of the cost of a similar stone found in nature.

A diamond can be drilled with a laser, sometimes 5 to 10 times, and then dipped in acid to remove eye-visible black inclusions; this treatment is not required by law to be disclosed to consumers. The FTC's position is that the average consumer should be able to detect these tiny drill holes with a microscope. In other words, it is the buyer's responsibility to detect this treatment and not the responsibility of the professional jeweler to disclose it. Laser-drilled diamonds sell for much less than undrilled diamonds.

Scarcity:
The more scarce a jewelry item is, the more valuable it is. This not only applies to the type of jewelry, but also to the materials that compose the jewelry item.

Size:
Generally, the larger the piece of jewelry, the more valuable it is. However, the size should be appropriate to the style and to the wearer.

The preceding article was written using information from Warman's Jewelry by Christie Romero.