The Experiment

I bought a 1.8ct Australian parti sapphire for $2,400 (direct from miner). Eye-clean, vivid blue-green-gold color zones, well-cut.

Then I took it to 5 different jewelers for appraisal. I told each one: "I inherited this ring. Can you appraise it for insurance?"

Same stone. Five wildly different appraisals.

What Each Jeweler Said

Jeweler #1: $15,500 (Chain Store)

What they said: "This is a rare, high-quality sapphire. Retail replacement value is $15,500. You should insure it for that amount."

Why they inflated:

• Insurance referral commission (10-20% of first year premium)
• If I lose the ring, I'll buy replacement from them at inflated price
• Higher appraisal = higher premiums = more commission

Red flag: They pushed their insurance partner aggressively.

Jeweler #2: $12,000 (High-End Boutique)

What they said: "Beautiful stone. In our store, this would sell for $12,000. That's your insurance value."

Why they inflated:

• Their retail markup is 400-500% (they'd sell it for $12K)
• Appraisal reflects their pricing, not fair market value
• Makes their store seem premium ("your ring is worth $12K!")

Red flag: Appraisal based on their inflated retail prices, not actual value.

Jeweler #3: $8,500 (Independent)

What they said: "This is worth $8,500 for insurance purposes. It's a quality stone."

Why they inflated:

• Standard practice (most jewelers inflate 200-300%)
• Customers expect high appraisals (makes them feel good)
• No downside for jeweler (customer pays inflated premiums, not them)

Red flag: No explanation of methodology or comparables.

Jeweler #4: $5,800 (Gemologist)

What they said: "Fair market value is $4,000-$4,500. Retail replacement is $5,800. I recommend insuring for $5,800."

Why moderate inflation:

• Honest about fair market vs retail replacement
• Still inflated retail replacement by 140%
• Industry standard practice

Better, but still inflated.

Jeweler #5: $3,200 (Independent Appraiser)

What they said: "This stone is worth $2,800-$3,200 fair market value. I recommend insuring for $3,200—actual replacement cost, not inflated retail."

Why accurate:

• Independent appraiser (no insurance commissions)
• No retail sales (no conflict of interest)
• Certified gemologist (GIA)
• Based appraisal on actual market comparables

This was the only honest appraisal.

The $12,300 Spread

Why such a massive difference between appraisals?

Conflicts of interest:

• Jewelers who sell jewelry inflate to match their retail prices
• Jewelers who earn insurance commissions inflate to increase premiums
• Jewelers who want repeat customers inflate to make you feel good

Only independent appraisers have no conflict of interest.

How to Get an Accurate Appraisal

Step 1: Use Independent Appraisers

Find a certified gemologist (GIA, AGL) who:

• Doesn't sell jewelry (no retail conflict)
• Doesn't earn insurance commissions
• Charges flat fee for appraisal ($75-$150)

Step 2: Ask for Fair Market Value

Request "fair market value" appraisal, not "retail replacement value." Fair market = what you'd actually pay to replace it.

Step 3: Compare to Purchase Price

If appraisal is 2-3X+ your purchase price, it's inflated. Question the methodology.

Step 4: Get Multiple Appraisals

For expensive stones ($5,000+), get 2-3 independent appraisals. Average them.

The Bottom Line

I took one sapphire to 5 jewelers. Appraisals ranged from $3,200 to $15,500—a $12,300 spread for the same stone.

Why the spread:

• Insurance commission conflicts (inflate to increase premiums)
• Retail pricing conflicts (inflate to match their store prices)
• Customer satisfaction (inflate to make you feel good)

How to avoid:

• Use independent appraisers (no conflicts of interest)
• Ask for fair market value (not retail replacement)
• Compare to purchase price (should be similar)
• Get multiple appraisals for expensive stones

Spending $100 on an independent appraisal saves you $1,000+ in inflated premiums over 10 years.