So, you have this beautiful diamond ring, looking at the Appraisal Certificate that says $10,000 value, thinking “I’m holding $10,000 in my hand”. Cool!

Well, not exactly.

Let’s have a closer look at the Certificate’s evaluation versus the true real value of diamond jewellery. In our analysis we shall only look at the market value of an item and not any possible artistic, historical or sentimental values.

First of all please note (if you happen to have a piece of diamond jewellery with a Certificate, have a look yourself) that almost every Certificate says “Replacement Retail Value”, “Insurance Value” or similar. This is the approximate price you would have to pay for an equivalent item in the retail jewellery store. For insurance purposes this value is usually further inflated (which insurance companies are well aware of). This is NOT the real value of an item!

Below is an example of the actual Certificate:


It describes the item including some vital diamond characteristics, like its carat size, clarity, colour, cut, measurements and overall item’s weight. Usually at the bottom of the Certificate there is an appraised dollar value, sometimes including the applicable sales tax.

The wholesale pricing of similar stone looks however quite different:


We at Cash M Company pay approximately 60% of the wholesale price. So in this example you are looking at about $1,900. Plus $70 for 14K gold makes a total of $2,000. That is less then 20% of the appraisal value!

After several years dealing with diamonds we established a rule of thumb that is almost always true: the real value of an item is between 10% – 20% of the appraisal amount. For smaller stones (less then 0.5ct) it gets closer to 10%, for bigger diamonds (more then 1ct) it comes close to 20%. On rare occasions of course the true value may be more then that, especially for very high quality big diamonds.

The above analysis is for illustration purpose only and does not constitute a professional evaluation of any kind.