Appraisal Concepts and Principles

Abstract

The Cost Approach and the Market Data Comparison Approach are the two most viable means of estimating value in gems and jewelry appraisals. One of these approaches should be used when the appraiser is researching and estimating value in any category of jewelry. The principles are not only generic to the appraisal profession, in general, but to the personal property branch of appraising in particular. The Income Approach is used in appraising income-producing property (such as leased jewelry) and seldom applies to personal property, but it is regularly used in real property and business valuation. It is not necessary for the jewelry appraiser to learn this method, but be aware of its existence and the appraisal discipline where its use is most appropriate.