Estate Jewelry Appraisal with a Fancy Yellow Diamond and a Polymer-Impregnated Jadeite Bangle

Fair market value is the amount at which property would change hands between a willing buyer and a willing seller, neither being compelled, both having reasonable knowledge of the relevant facts, and with the property exposed to the market for a reasonable time. For estate tax, the relevant market is generally the wholesale or secondary market, not a retail jewelry store. Retail replacement value is the cost to replace the item with a new or comparable item at retail, including markups, and is appropriate for insurance scheduling. Using retail replacement value for an estate tax return overstates the taxable estate. For the diamond, fair market value should be based on auction or dealer-level transactions; for the jadeite bangle, the estate value should reflect the treated nature of the material; for the charm bracelet, value should reflect the secondary market for 14K gold jewelry, with scrap value as a floor and brand or maker premiums only if supported.

Convert the comparables to price per carat. The 2.51 ct VS2 sale is about $15,139 per carat; the 3.10 ct SI1 sale is about $14,194 per carat; the 3.55 ct VS1 sale is about $20,282 per carat. The subject is 3.02 ct, so it falls between the first two in size, with better clarity than the SI1 and the same clarity as the 2.51 ct stone. Fancy vivid yellow diamonds often show a size premium, so the smaller 2.51 ct comparable should be adjusted upward per carat for the subject's larger size. The 3.55 ct VS1 comparable is larger and cleaner, so its per-carat rate should be adjusted downward for the subject. Reconcile to roughly $16,000-$18,000 per carat, or about $48,000-$54,000 for the center stone. Add the value of the 0.65 ct baguette setting, supported by comparable mounting costs, but do not use retail markup for estate tax. Confirm the GIA report is the original and that the color is natural.

Polymer impregnation is a treatment. It fills surface-reaching fractures and improves apparent texture and stability, and it must be disclosed in the appraisal. The retail comparables of $8,000-$14,000 are not reliable if they represent untreated jadeite or if their treatment status is unknown. The treated auction sales of $1,200-$2,500 are more relevant to fair market value, although the appraiser should verify that those comparables are also polymer-impregnated and of similar color and size. The lab note that color was not tested for stability raises a further risk of dyeing or instability, which may require an additional test or a value range. For estate tax, the value should reflect the treated material and the limited market; the appraiser should state the treatment, the basis for the comparables, and any extraordinary assumption.