Jump to content
Sign in to follow this  
cyberexchange

Valuation Certificates

Recommended Posts

cyberexchange    10
cyberexchange

Could some knowledgeable persons please explain the purpose of valuation certificates accompanying gemstones.

 

I have paid as little as R 800 for a sapphire and with it, I received a valuation certificate for R 41 500.

Insurance Companies will gladly insure these treasures for that sum( R41 500 ) at a hefty annual premium equal to the original purchase price.

 

The crunch comes when you claim. You receive a order authorization from the insurer to purchase a similar stone and I guess it does not cost them more than what the gem originally cost.

 

So why bother with valuation certificates which will only enrich insurers to the detriment of gullible buyers.

 

Am I missing something ?

Share this post


Link to post
Share on other sites
alloway65    10
alloway65

A GISA Certificate in essence only confirms what a gemstone's specification actually is and that the gemstone is what you actually bought and paid for....or not

 

If a GISA Rand value is given this is only an indication of the probable retail value....the market/resale value would be between 5% and 15% of this value.

 

A seller produced valuation certificate could be based on Gemval values and is not worth the paper it is written on!

 

A recognized valuation certificate for a Diamond is different and indicates basically what you would pay for the stone.

 

As with a normal business insurance, stock is insured for the cost price not the possible selling price.

 

Only my humble opinion.

 

Edited by alloway65

Share this post


Link to post
Share on other sites
cyberexchange    10
cyberexchange

Thank you for your reply. I do not have business insurance and have to place these items on my personal insurance. They call for valuation certificates which means an additional cost.

Share this post


Link to post
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
Sign in to follow this  

×