Diamond is very valuable and is used to mark occasions that have the same amount of significance that the diamond possesses. Taking care of these delicate yet expensive and valuable items of jewelry does not come easy. A little knowledge can help in making them assets and investments that can yield profits as well as protect from theft or damage.
Home, car and engagement rings are few of the expensive purchases that are mandatory in anyone’s life. Hence it is important to make sure that the diamond purchased pertains to standards like quality, characteristics and value. Knowledge of diamond certificates, appraisals and insurance is beneficial to avoid any sort of fraud.
Certificates provide proof of the diamond’s identity. Certificates are usually issued by the independent accredited gem labs like the Gemological Institute of America and the American Gem Society that have no part in the sale of the diamond. The certificated issued by these bodies attest the quality and authenticity of the diamond. These help in determining the value of a diamond in comparison to others. The certificates are used by the appraisers to determine the replacement value of the diamond or for insurance purposes; although this has to be accompanied by a separate appraisal. The certificate lists the characteristics of the diamond like its shape, carat, color, clarity, exact measurements, proportions, imperfections, polish and symmetry. The quality of the cut and the presence of fluorescence is also mentioned and commented upon.
Appraisals are documents stating the approximate value of insurance, replacement and estate of the item. The insurance company requires this document to provide insurance. The value of an item is calculated on factors like current retail price, regional markets, cut, color, clarity, carat weight, weight of precious metal used for the jewelry, origin of materials used and the craftsmanship of the piece. Some of the appraisals have plots, diagrams and photos in addition to documentation.
Insurance options are available with the retailers usually in association with insurance firm. The policies are many and research and comparisons should be done before settling on one. The coverage of the insurance can be added on the home owner’s policy if permitted by the agents. Another option is to take special jewelry insurance policies from insurance firms that provide separate policies.
Certificates, appraisals and insurance are helpful in maintaining and looking after the precious diamond that you purchased for those cherished moments of life.