If you are about to make a diamond purchase, you should have it appraised to give you absolute proof of the diamond's authenticity and of it's value, before you hand over any money. Also, if you already own a valuable diamond, you should have it appraised. There are many reasons why you should have this done. The biggest reason is so that you can be 100% certain that the diamond you have in your hands, or are about to purchase, is in fact in the same diamond that is listed on the diamond certificate.
Given the amount of money that can be involved in transactions with precious diamonds, the industry can be prone to fraud. Sometimes a dealer may show you a particular diamond, yet actually give you a different one, upon purchase. Unfortunately, this does happen, and is one of the main reason for getting your diamond professionally appraised.
The diamond appraiser, upon confirmation of your diamonds authenticity, will also supply you with a fair market value price for your stone. The diamond appraiser does not actually set the price himself, but rather compares it to the market value at the time of appraisal. This pricing estimate comes from a current wholesale diamond list. Appraisals can be done on any type of jewelry, and not just diamonds.
Other reasons for having your diamond appraised:
To determine a fair price, prior to purchase
You will need to have an appraisal if you will be selling your diamond at a later stage.
To confirm ownership
For insurance
If the diamond is part of a deceased estate which needs to be settled
In case of theft or loss of the jewelry item, you should have any precious item covered by insurance, which will require proof of purchase and your appraisal certificate.
When getting diamond certifications done, make sure that the diamond appraiser you employ is properly qualified and has no financial interest in the stone himself. This is important to ensure you get a proper certificate, and not an illegitimate one that holds no value. An insurance company will not honor a claim if the diamond appraisal is not valid. The cheapest diamond appraiser is not necessarily the best, so check out their credentials before getting the work done.
The value of your diamond will change with time along with the current market value, so you should obtain a new appraisal every couple of years or so. Because insurance is based on the current market value, this is important to keep up to date. If you are happy with your diamond appraiser, then it will cost your less for subsequent appraisals by the same person.
Your final diamond appraisal report should an official one, professionally printed and certainly not handwritten. It should contain the following information:
Date and location of the diamond appraisal been done
The owners name
The intended users of the report
The purpose and the function of the diamond appraisal
A signed statement confirming the appraiser does not have any financial interest in the jewelry
Exact measurements
An accurate description of the diamond, or type of jewelry item
The age and condition of the diamond
Photographs
Any laboratory work that shows the jewelry details
A final evaluation statement giving the value of the diamond, what this was based on and including replacement cost.
So, having your diamond appraised and keeping this up to date is very important, whether your precious jewelry is an investment or if it is for personal use and wear only. Remember to have any precious stones or other jewelry verified by an independent and fully qualified jewelery appraiser, who has no financial interest at all.