The goal of an appraisal isn’t to just set a value based on the purpose, although that is what most people seeking an appraisal are most concerned about. The goal is to provide enough information to the parties using the appraisal that the purpose can be satisfied.

So a good appraisal will begin with a cover letter. The cover letter will describe who the users of the appraisal are, what the purpose is, and define it. Privacy clauses, the appraisers scope of work, and qualifications and equipment at the appraiser’s disposal may be listed here as well (if not here, it should be listed in attaché addendums).

The body of the appraisal should include a thorough description of the metal portion including the identity of the metal (gold, platinum, silver), the purity, method of manufacture (cast, die struck, hand fabricated), finish, trademark, and/or designer. Measurements and weight are also listed as well as the condition of the item. (Note: condition is especially important in appraisals for resale purposes because a worn out item is not going to be as marketable as one that is near new.)

Any gemstones should be listed and described with weights, color (or colorlessness in the case of diamonds) clarity and the quality of the cut. (mary l harding G.G. uses GIA nomenclature to describe diamonds and gemstones. Diamonds over 0.50ct will have a Grading Report included that includes a plot or blueprint of the inclusions.)

The valuation is included as well as the sales tax (if applicable). Any comments that affected the preparation are listed as well.

This type of detail in an insurance appraisal assures support of the valuation and gives both the owner of the item and the insurance company sufficient information to replace the item with one of equal value and quality. For the seller and purchaser, it supplies both with a reasonable knowledge of the item so a fair price can be agreed upon.