September 2012

JEWELRY INSURANCE ISSUES (formerly IM News), provides monthly insight and information for jewelry insurance agents, underwriters and claims adjusters.

Subscribe to
Jewelry Insurance Issues

Table of Contents

Click on article titles in red

2017

Moral Hazard, Documents and the Bottom Line - January

Ruby and Jade - February

How to mail a diamond - March

Jewelry Insurance Appraisal Standards: JISO - April

Describing a gem's color - May

Why not just put jewelry on the Homeowner policy? - June

GIA Diamond Reports - July

Not just a pretty face - August

Moral Hazards on the rise - September

Hurricanes, fires, floods—and jewelry insurance - October

2016

Inflated appraisals—alive & well! Shady lab reports—alive & well! MORAL HAZARD—ALIVE & WELL! - January

Clarity Enhancements v. Inherent Vice - February

How green is my emerald? - March

Cruise Jewelry - What's the problem? - April

Crown of Light®- how special is it? - May

Diamonds at Auction — Big gems, big prices, and the trickle-down effect - June

Are you sure her wedding jewelry is covered? - July

What Affects Jewelry Valuation? - August

What to look for – on the jewelry appraisal, on the cert, and on other documents - September

Bigger & Bigger Diamonds - October

Scam season is always NOW - November

Ocean Diamonds - December

2015

Pair & Set Jewelry Claims and the Accidental Tourist - January

Is that brand-name diamond a cut above the others? - February

Vacation Jewelry – Insurer beware! - March

Apple's Smartwatch – The risk of a wrist computer - April

Why you should read that appraisal - May

Smoking Gun! - June

Color-Grading Diamond: the Master Stones - July

Padparadscha—a special term for a special stone - August

Jewelry Appraisal Fees - September

Insuring a Rolex - steps to take, things to consider - October

Diamond camouflage and how to see through it - November

GIA Hacked! - December

2014

Who Grades? - January

Sales, discounts, price reductions, bargains, specials, mark-downs . . . . and valuation - February

Credential Conundrum - March

Frankenwatches - April

Fakes, fakes, and more fakes - May

Marketing Confusion — What is this gem anyway? - June

12 Reasons Not to Insure a Rolex! - July

Why NOT to insure a Rolex: Reasons 5-7 - August

Why NOT to insure a Rolex: Reasons 8-10 - September

Why NOT to insure a Rolex: Reasons 11-12 - October

The Doublet Masquerade - November

Is the gem suitable for the jewelry? Is this a good insurance risk? - December

2013

Wedding Rings on HO? NO! - January

Silver: the new gold - February

Point Protection - March

Tiffany v. Costco - April

What counts in valuing a diamond? - May

Appraising Jewelry - What's a credential worth? - June

A Cutting Question concerning vintage diamonds - July

Synthesized Diamonds - Scam update - August

Pretty in Pink - Kunzite on parade... - September

Preventing jewelry losses - October

Scratch a diamond and you'll find . . .??? - November

Synthetics in the Mix - December

2012

Advanced Gem Lab - A deeper look at colored gems - January

Whose Diamond? - February

Appraisal Inflation - It Keeps On Keeping On - March

Big Emerald - April

Changing colors and making gems: Are we seeing "beautiful lies"? - May

Diamonds - Out of Africa. . . or out of a lab? - June

Appraiser's Dream Contest - July

GIA & the Magic of Certificates - August

Pricey when it's hot: What happens when it's not? - September

Fooling With Gold - October

Tanzanite – December's stone - November

Branding Diamonds - What do those names mean? - December

2011

Unappraisable Jewelry - January

Replicas - Are they the real thing? - February

Composite Rubies- From bad to worse - March

Jewelry Hallmark - A Well-Kept Secret - April

Non-Disclosure: Following a Trail of Deception - May

Preserving the Diamond Dream - June

Spinel in the Spotlight - July

Jewelry 24/7 - Electronic Shopping - August

Diamond Bubble? - September

Disclosure: HPHT - October

"Hearts & Arrows" Diamonds - November

How a Gem Lab Looks at Diamonds - December

2010

Emeralds - And What They Include - January

Pink Diamonds: From Astronomical to Affordable - February

Palladium-the Other Precious White Metal - March

Bridal Jewelry - April

The Corundum Spectrum - May

How Photos Cut Fraud - and help the insured - June

The Price of Fad - July

Old Cut, New Cut-It's All about Diamonds - August

EightStar Diamonds-Beyond Ideal - September

The Hazard of Fakes - October

Jewelry with a Story - November

Counterfeit Watches - December

2009

Blue Diamond-cool, rare and expensive-sometimes - January

Turning Jewelry into Cash—
Strategy in a Bad Economy
- February

Enhancing the Stone - March

Being Certain about the Cert - April

Every Picture Tells a Story - May

Color-Grading Diamonds - June

The Newest Diamond Substitute - July

What Happens to Stolen Jewelry - August

Jewelry As an Investment - September

Black Diamond: Paradox of a Gem - October

Protect Your Homeowners Market—Keep Jewelry OFF HO Policies! - November

What’s So Great about JISO Appraisal Forms & Standards? - December

2008

Garnet - and Its Many Incarnations - January

Organic Gems - February

Do Your Jewelry Insurance Settlements Make You Look Bad? - March

Don't Be Duped by Fake JISO Appraisal - April

Diamonds in the Rough - May

The Cultured Club - June

Sapphire-Gem Superstar - July

It's a Certified Diamond! 
- But who's saying so?
- August

FTC Decides: Culture Is In! - September

Paraiba Tourmaline – What's in a Name? - October

How Fancy is Brown? - November

CZ – The Great Pretender - December

2007

Moissanite's New Spin - January

Online Jewelry - Buying and Insuring - February

Blood Diamonds - March

Damaged Jewelry, Don't Assume!- April

Chocolate Pearls - May

Appraisal Puff-Up vs Useful Appraisal - June

It's Art, but is it Jewelry?
- July

Diamonds Wear Coats of Many Colors - August

DANGER! eBay Jewelry "Bargains" - September

TV Shopping for Jewelry - October

Enhanced Emerald: clever coverup - November

How do you like your rubies -
leaded or unleaded?
- December

2006

The New Platinum: A Story of Alloys - January

Ruby Ruse - February

How Big are Diamonds Anyway? - March

GIA Diamond Scandal
Has Silver Lining for Insurers
- April

Watch Out for Big-Box Retailers Insurance Appraisals - May

Mixing It Up: Natural and Synthetic Diamonds Together - June

Tanzanite - Warning: Fragile - July

Red Diamonds - August

Inflated Valuations & Questionable Certificates - September

Emeralds - October

Where Do Real Diamonds Come From? - November

Counterfeit Watches - The Mushroom War - December

2005

The Lure of Colored Diamonds - January

Synthetic Colored Diamonds - February

Watches: What to Watch for - March

When is a Pear not a Pair? - April

The Truth About Topaz - May

White Gold: How White is White? - June

One of a Kind - or Not - July

Jewelry in Disguise - August

Valued Contract for Jewelry? Proceed with Caution! - September

Antiques, Replicas and All Their Cousins
October

Grading the Color of Colored Diamonds
November

New GIA Cut Grade for Diamonds - December

2004

Synthetic Diamonds - and Insuring Tips - January

Bogus Appraisals and Fraud - February

A Picture is Worth Thousands of Dollars - March

Don't be Duped by Fracture Filling - April

Gem Scams Point to Need for Change - May

What is a Good Appraisal - June

4Cs of Color Gemstones - July

Gem Laser Drilling: The Next Generation - August

Why Update an Appraisal? - September

When to Recommend an Appraisal Update or a Second Appraisal - October

Secrets of Sapphire - November

Will the Real Ruby Please Stand Up - December

2003

Mysterious Orient:
A Tale of Loss
- January

Bogus Diamond Certificates and Appraisals - February

Can Valuations be Trusted? - March

Spotting a Bogus Appraisal or Certificate - April

Counterfeit Diamond Certificates - May

Case of the Mysterious "Rare" Sapphires - June

Politically Correct Diamonds - July

Name Brand Diamonds - September

Princess Cut: Black Sheep of Diamonds - October

Reincarnate as a Diamond - November

Synthetic Diamonds - December

2002

Irradiated Mail/Irradiated Gems - January

Fake Diamonds (Moissonite) - February

GIA Diamond Report - March

AGS and Other Diamond Certificates - April

Colored Stone Certificates - May

Damaged Jewelry: Don't Pay for Nature's Mistakes - June

The Case of the "Self-Healing" Emerald - July

Mysterious Disappearance: Case of the Missing Opals - August

The Discount Mirage - September

What Can You Learn from Salvage? - October

Gaining from Partial Loss - November

Year in Review - December

2001

Colored Diamonds - January

Good as Gold - February

Disclose Gem Treatments - March

FTC Jewelry Guidelines - April

Myths Part I: Each Piece is Unique - May

Myths Part II: Myths, Lies, & Half-Truths - June

New Trend: Old Cut Stones - October

The Appraisal Process - November

Year in Review - December

2000

Deceptive Pricing - January

Gems - Natural or Manmade - February

Jeweler/Appraisal Credentials - March

Fracture Filling - April

Salvage Jewelery - May

Gem Treatments - June

Don't Ask/Don't Tell - A Buying Nightmare - July

Laser Drilling of Diamonds - August

Jeweler Ethics or the Lack Thereof - September

Gem Scam - October

The Truth about Clarity Grading - November

Year in Review - December

 

We'll be glad to notify you when the Jewelry Insurance Issues is available each month. Sign up for your FREE SUBSCRIPTION to Jewelry Insurance Issues.

Visit the rest of the JCRS site:  www.jcrs.com

Pricey when it's hot: What happens when it's not?

What's in a name? A famous name can wield a great deal of power, and in jewelry that name can increase, or even create, value.

Angelina Jolie, in collaboration with jewelry designer Robert Procop, recently launched a line of jewelry called Style of Jolie. The pieces have sumptuous colored gems set in 18k gold. Proceeds from the sales go to Education Partnership for Children of Conflict, a nonprofit that helps educate children in conflict-stricken areas. The "good cause" will surely play a part in motivating purchases, and the emphasis on colored gems appeals to current taste, while the Jolie name gives it all that extra lift.

Ring from Ivanka Trump Collection

Donald Trump says his name alone is worth about $3 billion. Many developers pay just to use the Trump name in marketing their properties. His daughter Ivanka Trump has a line of jewelry that certainly benefits from the famous name associated with wealth. Her brand covers not only jewelry, but also clothing, shoes, handbags and other accessories. Common motifs are her “signature oval” and the color pink. Sales benefit not only from her famous name but from a concerted marketing strategy.

Famous people can lend value even to objects they own. Elizabeth Taylor had an extensive collection of unique, world class jewelry, but her possession of them amplified their value. Auction of her jewelry after her death set world records, with some pieces going for 50 times their estimated value.

It’s an open question whether such jewelry’s value will hold over time or whether it will fall with the popularity of the name associated with it, either as owner or brand. Is such jewelry just a fad that will pass?


Pandora bracelet

 

There are other jewelry fads.The Pandora phenomenon is one to keep an eye on. These do-it-yourself charm bracelets are hugely popular right now, with big ads and an extensive website. Pandora offers “beads to commemorate a friendship, a love, weddings, babies, holidays, milestones, hobbies and so much more.”

The charms have a wide price range, depending on what they’re made of; some cost more than $800. Then there are the spacers and stoppers and the gold necklace or bracelet strand itself. The heart bead shown here is $360 in 14k gold or $25 in some unidentified material. The “car with CZ bead” is $55. 

Then there are the websites advertising “Pandora beads at 80% off, no sales tax, free shipping.” On one such site the prices on some beads barely made the double digits.

So the name Pandora carries no presumption of quality or value. Also, the composition of any bracelet is highly idiosyncratic: some beads may be made of quality materials and others not. A valuation of the whole piece is not possible without examining each bead.

Styles and materials can also come into fashion and then drop away. Black diamonds, bling, and rose gold, for examples, are popular now but may not remain so.

Looking into the future

Today, at the peak of the Pandora fad, the beads could be appraised and insured at their retail price. But what happens in 10 or 20 years? Will the fad have passed? Will interest in Jolie or Trump or any other designer name fade? Will black diamonds or rose gold just look old fashioned?

Once a brand or style is no longer the current thing, it may become sought-after “period jewelry,” like Art Deco. Or a piece may retain a modest market value as retro or kitch. Or its worth may be reduced to the scrap value of the gems and metals.

How to value “fad” jewelry – in fact, even determining whether something is a fad – is an issue for both appraisers and insurers. An appraiser must  be continually aware of the market in order to accurately state value. And he may have to face the ethical dilemma of telling a client that a piece of jewelry has declined in valuesince it was last appraised.

Most insurers don’t review their jewelry policies from year to year. Once something is on the books, it stays there. Some insurers have a formula for automatic inflation, so that even fad jewelry has  the appearance (on paper) of getting more valuable year by year. In the event of a loss, this practice could lead to settlement problems.

FOR AGENTS & UNDERWRITERS

Jewelry fads emphasize the importance of having a new valuation for jewelry every couple of years. Jewelry, like other material objects, takes its value from the marketplace. When people no longer want it, its value falls like a rock.

It is important to have an appraisal from an appraiser who is aware of the current market.

Make no assumptions about the value of brand names. Be sure to get a detailed, descriptive appraisal on all scheduled jewelry. For high-value pieces, get two appraisals; at least one of them should be from an appraiser who has a GG or equivalent degree, and preferably who is also a Certified Insurance Appraiser.

FOR ADJUSTERS

A settlement is based on value at time of loss. This is especially relevant in regard to trendy jewelry. Yesterday’s fad jewelry may be worth only the value of its metal and gem material. On the other hand, a relatively unknown designer may become famous and his works may appreciate in value.

Be sure the appraisal valuation is recent and reliable.

©2000-2017, JCRS Inland Marine Solutions, Inc. All Rights Reserved. www.jcrs.com

Subscribe to Jewelry Insurance Issues

Manual JIBNA