Lab-grown diamonds have surged in popularity over the past decade, offering an ethical and often more affordable alternative to natural diamonds. Just like natural diamonds, lab-grown diamonds require regular appraisals to ensure their value is accurately documented for various purposes such as insurance, resale, and estate planning. Although most of the time you can treat your lab grown diamonds the same as your natural ones, there are some extra precautions you should take with your lab grown diamonds to ensure they are appropriately covered. Here’s a comprehensive guide on when and why you should update your lab-grown diamond appraisals.
1. Time Intervals: Every 2-3 Years
Unlike natural diamonds where an update should happen every 3-5 years, lab-grown diamonds can be subject to more rapid shifts in market value due to advancements in technology and changes in consumer perception. Therefore, it’s advisable to update your lab-grown diamond appraisals every two to three years. This interval helps keep your appraisal in line with the current market conditions and technological advancements.
2. After Significant Market Changes
The value of lab-grown diamonds can be influenced by various factors such as improvements in production methods, changes in supply and demand, and shifts in the overall jewelry market. If there are significant changes in these areas, even if it hasn’t been two years since your last appraisal, consider getting an updated valuation to reflect these market dynamics.
3. Post-Restoration or Modification
If your lab-grown diamond jewelry has undergone any form of restoration, repair, or modification, it’s crucial to update the appraisal. Changes such as resetting the diamond, resizing the ring, or any form of enhancement can alter the piece’s value. An updated appraisal will account for these modifications and provide an accurate current valuation.
4. For Insurance Purposes
Insurance companies often require appraisals to determine the value of items covered under a policy. Regularly updating your appraisals ensures that your insurance coverage remains adequate. In the event of loss, theft, or damage, a current appraisal will facilitate the claims process and ensure appropriate compensation.
Updating appraisals for your lab-grown diamond jewelry is an important practice to maintain their documented value. Given the dynamic nature of the lab-grown diamond market, regular updates every two to three years, or during significant changes, will help you safeguard your investment and ensure proper insurance coverage. Whether for insurance purposes, estate planning, or resale, keeping your appraisals current is essential for managing your lab-grown diamond collection effectively.