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Gem Cards - Something Wicked this way Comes...

Valuation of jewelry and gems has come a long way in the past few decades. The determination of what makes a finished piece of jewelry or loose gem worth "x" as opposed to "y" has been a topic of discussion for both industry insiders and consumers. Unfortunately, there are a few gemological laboratories, which err on the high side of value, as opposed to using a more conservative approach.

The valuation of finshed jewelry and gems will never be an exact science. As such, the gemological labs, which pull out ALL the stops, when valuating jewelry and gems - can be so far over the top that such high valuations simply confuse the consumer/buyer. In addition, these super high valuations (offered by a few spurious laboratories) also serve to set higher than average industry norms and therefore, consumer's may be paying way too much for an item, which is of lesser quality than that of a "true" high end quality product. It's a dangerous precedent and one that needs to be addressed.

Appraisals:

Appraisals do assist those purchasing jewelry and gems online in achieving a comfort level when purchasing an item they can't see, touch and feel (in person). However, there are many different types of appraisals, you can receive an appraisal which discloses an Estimated Retail Value, one for Insurance Replacement Value or one which is deemed a Quality Assurance Report.

Estimated Retail Value appraisals are based upon the average (national) estimated retail value the item could achieve (depending on the market in which you're purchasing an item).
Insurance Replacement Value is what your insurance company will accept as the instrument of value in insuring your items. Remember, insurance companies have the right (in most cases) to replace the item at their cost, as opposed to paying on a claim. Four years ago, the biggest jewelry retailer in the United States was NOT a jewelry chain but, a well-known insurance company. They purchased over $1 Billion dollars in replacement goods.
A Quality Assurance Report is just what it means, a QAR let's you buy an item in confidence, as it certifies that the gem or jewelry item you're purchasing is "certified" to be exactly as described.

You will also find that many insurers actually allow you to increase the value of your gems and jewelry by up to 5% per year. This should tell you something about the value of gems and jewelry in the marketplace and why prices only go up on merchandise and never seem to plateau or go down. If you opt for an estimated retail value appraisal, your premiums will go through the roof and this is why many consumers opt for Insurance Replacement Value, as opposed to Estimated Retail Value appraisals. A Quality Assurance Report is just what it means, a QAR let's you buy an item in confidence, as it certifies that the gem or jewelry item you're purchasing is "certified" to be exactly as described.
Terminology - Words - Words - Words:

There are many words to describe gems and jewelry. When gems and jewelry are listed within titles, Eye-Catching" words (such as the following) may appear in the title: (We have labeled the following as Word Group "A")

Gorgeous
Beautiful
Stunning
Exquisite
Unbelievable
Elegant
Magnificent
Fascinating
However, there are listings, which also appear in conjunction with the above related words and they may be as follows:
(We have labeled the following as Word Group "B")

Ultra Fine
AAAAA
AAAA Fine
XTRA Fine
Super Fine
Gem Fine
Deluxe Fine
Museum Quality
Museum Aged
Describing a gem as Ultra Fine, AAAAA, XTRA Fine, Super Fine (and so on) may be confusing for those who are not familiar with the 4C's when buying diamonds and/or jewelry set with diamonds.

Gem Cards - A Questionable Practice:

What's more disturbing is the use of the words "fine" and "extra fine" (and so on ) on Gem Cards. Gem Cards seem to be the new wave in selling jewelry and gems. They are usually offered for free and look like a plastic credit card. These cards may have a picture of the item, carat weight and some type of grading information. If it's a diamond ring, which has been graded and there are many diamonds in the piece, the piece may be graded as VS-1 to I1. In other words, if it's a pave setting you're being offered (which may contain 5 pointer diamonds) this means that one diamond (out of the entire group) may be VS-1 however, the remaining diamonds may be all I1's.

The Gem Card is the next great selling tool, as this little card can carry a message of "high value". In the case where the diamonds are graded VS-1 to I1 - the term "VS-1 is what catches the buyer's eye. VS-1 is the grading which "sells" the piece. However, once you receive the item and find crusty white I1 diamonds and one VS-1 diamond - you'll be sorely disappointed - as in many cases, the one "good" diamond stands out amongst the crusty white "smashed glass look" of the I1 diamonds.

It's not by accident that a VS-1 diamond is set into the piece. Put in a VS-1 diamond and the seller can use the grading however, it's a slippery slope upon which they sell such goods, as if one diamond is a VS-1 and the remaining diamonds are I1's - the quality of the piece and the high value attached via a Gem Card - becomes questionable.

Gem Cards should NOT be given any weight when purchasing a finished piece of jewelry or loose gem as they set a bad example for the entire industry. They bring into question the validity of value and this has far reaching implications for the entire gemological grading industry.

Acceptable and Non Acceptable Words in Descriptions:

If one uses words such as Elegant, Fascinating and Stunning (as listed in Word Group "A") then this is the opinion of the Seller and the piece may indeed present itself as "Elegant and Fascinating". However, to use words such as XTRA Fine, Gem Fine or AAAAA may be a bit confusing for many buyer's who may think these terms apply to the cut and clarity of a given gem.

In fact, those who use terms such as "Museum Quality" or "Museum Aged" may be teetering a bit on the side "carnival barking" their wares - as to imply a gem is "Museum Quality" - is to imply the item should be displayed in a Museum!

We've all been to Museums at one time or another in our lives and the only Museum (or Institute) I have seen Museum Quality gems is at the Smithsonian. If we're talking the Hope Diamond then that's one thing however, if we're talking about a three carat Burmese Ruby, then I think that stating "Museum Quality" may be a far reaching use of wording.

"Museum Aged" is another term, which (I think) may imply that an item is so old that it should be in a Museum. Okay, one slight problem on this use of wording and that goes to the core of "just how old are gems - which are mined from the earth?". I guess you can see my point.

Gem Origins:

When gem listings use words such as "Burmese Ruby" does that mean that the Ruby indeed came from Burma? Unless the gem arrived with a stamped passport from Burma or a gem "birth certificate" then one really does NOT know the origin of the gem. However, to state the gem is Burmese may simply imply the color of the stone is that of Rubies which originate from Burma.

What's even more disturbing is the use of the phrase "pre-embargo burma rubies". How does anyone what a "pre-embargo" ruby looks like let alone, that it is indeed a "pre-embargo" burma ruby?

The same can be said of Emeralds originating from Zambia or Tanzanite originating from Tanzania. Tanzanite also comes from other parts of the world - as do rubies, emeralds and sapphires.

Alexandrite:

There are some who advertised Alexandrite as "Russian Alexandrite". However, Russian Alexandrite originates from the Ural Mountains located (of course) in Russia.

(True) Russian Alexandrite displays a unique color change. However, Alexandrite is now originating out of Brazil and the color change is far from "true" Russian Alexandrite (which has basically been depleted and can only be found on the secondary market via serious collector's, buyer's and seller's).

The Brazilian version of Alexandrite changes from green to a gray-blue and while it's found in abundance, the price per carat is a bit on the high side as the "word" Alexandrite commands attention!

In closing, also remember a simple rule of thumb - if a Gem Card states an item is worth $7500.00 however, it's being sold for $300.00 then there's something very amiss in the valuation being touted. Does anyone (anywhere) on this planet sell anything for $300.00 - which has a Gem Card stating a value of $7500.00?

Buying fnished jewelry and gems on online can fun and exciting however, you might want read in between the lines in descriptions and research any gemological laboratory, which offfers Gem Cards, as opposed to the standard industry appraisal.

Exciting News!
The has announced that Windsor Auctions now conducts Live Auctions via Split Second Auctions. Bidders can attend online auctions in "real time" placing bids through a LIVE Bidder's Applet provided by Split Second Auctions.

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