Gareth Brown FGA, DGA, CPAA, AJP, FJVA, MIRV on LinkedIn: #homeinsurance #insurancebrokers #diamonds #valuations #jvaregisteredvaluer (2024)

The belief that diamonds and jewellery are significantly cheaper outside of the UK is as old as the hills. And yes, there will be a modicum of truth to that statement, but it is definitely not a cast-iron guarantee. What is guaranteed, however, is that fraudsters will play on this belief and do their best to exploit the unsuspecting. And with the increased prominence of synthetic diamonds, fraudsters now have a golden ticket to riches.The diamond in this video is a high-spec oval cut weighing just under 2.00ct. It was purchased abroad while the client was on holiday. It was sold as natural and offered for a price lower than you'd expect to pay for a comparable stone here in the UK, but not so low as to seem unbelievable. It wasn't supplied with a laboratory report or any documentation, as apparently, the seller hadn't gotten around to it. They said it could be done, but it wouldn't be back before the client was due to return home. So, a discount was given as a sweetener for the stone not having any documents. This was agreeable to the client, so they purchased the ring.Thumbs up to the client's insurance company on this one. They stated they wouldn't put the ring onto cover without an independent valuation, which is how it ended up on my desk. And as anyone who has read more than one of my posts will know, I take the view that everything I see is lying to me until I prove otherwise. So I went to work and tested the hell out of it, and low and behold, it's not natural; it's an HPHT synthetic. The video shows the diamond phosphorescing after exposure to SWUV. I've cropped the video down, but that stone carried on glowing for some time. It could have been used to guide ships into a harbour. The client has now taken the issue up with their card provider, as, believe it or not, the 'very nice' jeweller is not replying to any communication.Fraudsters are not only going to greater lengths than ever to deceive, but they also have considerably more ways of doing it. It's no longer just a matter of being mindful of the adage that if it's' too good to be true, ' it is. Now, you have to be switched on and alert to any myriad of potential scams.My advice to anyone thinking of buying, whether here in the UK or abroad, is to take your time. Do a bit of research on the piece; what will it cost elsewhere? And what sort of reviews or feedback does the seller have? And if something doesn't feel right, don't buy it. I promise you, there is no shortage of jewellery out there to buy. It's likely not the best deal you're going to get, and it will very much be there tomorrow. And, of course, whatever you buy, get it checked over by an independent valuer, just to be sure. #insurancebrokers #diamonds #labgrowndiamonds #consumerprotection #jvaregisteredvaluer

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I have a question for the UK insurance industry, specifically those in home contents. When it comes the jewellery, why do some still think a receipt is an acceptable alternative to a valuation? I get that receipts are fine for white and brown goods; after all, a Sony Bravia KD43X75WL is quantifiable and the same wherever you go. But with jewellery, the variables are numerous. Sure, a receipt will tell you what you've got, such as an 18ct white gold sapphire and diamond ring. But what's the weight, how was it made? Is it cast, cast and assembled, or handmade? What is the weight and quality of the stones? No receipt will ever say 'bang average' but will likely say 'good quality' sapphires. But by whose definition is good quality, and what is the cost in the current market? A receipt is a transactional record and shows the monetary figure the business was prepared to sell it for, along with what the buyer was prepared to pay. Will that be reflective of the cost of replacing that piece in the wider UK jewellery market? Unlikely.But for the sake of argument, it's the most detailed receipt in the history of the world and rivals a professional valuation. But it's still not going to tell you what level of risk you're taking on when underwriting the piece.The owner of this sapphire and diamond ring came in for a valuation on another piece. They said they didn't need this ring valuing, as it was new, and the insurance company were happy with just the receipt. Funnily enough, the receipt made no mention of the clear daylight between the diamond and the setting. The client asked me to take a look for my opinion on whether they got a 'good deal', which is when I noticed the 'gap'. Honestly, the picture doesn't do that gap justice; I could have parked a Nimitz-class aircraft carrier in it! One good tap and that diamond would have been off on its own little day trip somewhere. It could have been worse, I guess; they could have 'glued' it in.Receipts are fine for quantifiable goods, but a proverbial ashtray on a motorbike when it comes to jewellery. If you want to ensure you are aware of what risk you are taking on, along with an accurate market value, so you can ensure the premium is correct, then you have to insist on a professional valuation. Receipts for jewellery can't do that. #homeinsurance #insurance #insurancebrokers #question #jvaregisteredvaluer

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Betterment is the little-known yet obvious limitation of an insurance policy.Recently, I was talking with a colleague, and we concluded that there was a substantial disconnect between the sales & claims departments of many insurance companies. Clients are often signed up without knowing specific limitations of the policy. They are, instead, left to read T&Cs written in the most obscure form of legalese.One aspect of insurance for watches that few people seem to know about but causes the most consternation is 'Betterment'. So what exactly is betterment? Simply, it is when a policyholder wants to replace a lost or stolen item with something that is 'better' than what they had.Sounds straightforward forward, doesn't it? So why does it cause so much confusion? We can thank the term 'new for old replacement' for that one and the belief it means exactly as it sounds. Sadly, when it comes to watches, it doesn't. The example I use is a nondescript gold watch. It's from the 80's, and weighs 90g. It is still made, but the current model now weighs 120g. Betterment means you couldn't replace the old watch with the new one, as you would benefit to the tune of 30g of gold that you didn't have originally. It works in reverse as well; an insurance company couldn't replace your 120g watch with a 90g watch.That is a simplistic take on it, as watches are considerably more nuanced. Changes in proprietary metals, manufacturing, movement specs and so on will push most watches into betterment. The whole situation is not helped by some brands having the laziest design teams in the world. They are glacial in their speed of change. You can put a 40 year-old watch next to a modern one, and they look almost identical. So people assume it's the same watch, but underneath, it's very different.Now add in inexperienced & unqualified hobbyist valuers, and disaster swiftly follows. Insurance company assumes the policyholder has read and understood the T&Cs. Policyholder thinks 'New for old' means exactly that. Hobbyist valuer thinks that, but they also think they can't be wrong as a valuation 'is just an opinion'. What inevitably happens then is a claim swiftly declined on the grounds of betterment. How do I know? Because I get phone calls from very angry people who give me chapter and verse of how they think their insurance company is trying to rip them off. And asking me to provide a post-loss assessment, because they don't like what the insurance company have told them. When it's the betterment clause, doing its thing.This is a recurring issue that can easily be avoided. Insurance companies explain to your clients the limitations of the policy. Don't assume they know. Also, insist on professional valuations from qualified valuers who understand what market is the most accurate to replace the piece in question. Thus, if a claim does happen, all parties know where they stand.#insurance#doyouknow#professionalservice#watches#jvaregisteredvaluer

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I, too, watched this episode of Dragons Den and sat in amused surprise that such misrepresentations got past fact-checking/editing. But I was like, 'You know what, it's Sunday night, and I am too tired to comment'. So, I am delighted that the Natural Diamond Council and The National Association of Jewellers have. There is far too much misinformation doing the rounds about synthetic diamonds, and this show did not help. One of my biggest annoyances is the greenwashing of synthetic diamonds and how they are the right choice for the environmentally conscious. This fact is succinctly covered in this open letter.'Regarding environmental impact, it is not possible to make a simplistic general statement across a category of products. Each company within the industry has a range of production processes, geographical locations, power sources, productivity capabilities, and sustainability-focused practices.'Synthetic diamonds have a place within the jewellery market, but they need to be sold on their own merits and not by made-up, factually incorrect statements.#dragonsden #bbc #education #transparency

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2024 has gotten off to a 'gluey' startThere is good and bad in every industry, and the jewellery trade is no different.But I am pleased to say that in the near thirty years I've been in it, I've seen more good than bad.But it's the bad things that tend to stick in the memory, and the use of glue for substandard repairs isn't unheard of. In my experience, they've all tended to be small jobs where the glue is hard to spot, although that doesn't make it acceptable.So, to see glue holding a diamond in place is shocking enough, but this isn't just any diamond; it is a 4+ carat diamond!And for those of you who are not familiar with diamond weights and measurements, this stone has a diameter of over 1cm.And it wasn't just the one claw that was glued to the stone, oh no.This stone was set into a multi-claw mount, and only one claw had direct contact with the stone; the rest were glued.Rather shocking for a diamond that would cost in excess of £60,000 to replace.As you'd expect, there are better ways to set a diamond than glue.It was a good job; the client brought this ring in when they did, as the glue had started to degrade, and the diamond was loose.Thankfully, the ring is now in a workshop being repaired correctly, but had it not been noticed and addressed, that stone would have fallen out. This highlights the importance of taking your jewellery to a reputable and trustworthy jeweller for repairs.Additionally, it's essential to get a physically inspected valuation where the jewellery can be cleaned and checked over, just in case someone has been overly excitable with the adhesive.#insurancebrokers #homeinsurance #shocking #jewelleryrepairs #jvaregisteredvaluer

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There is "nothing new under the sun." With all the furore surrounding synthetic diamonds being passed off as natural, it's easy to forget the risk counterfeit watches and watch fraud still pose. Despite the cooling of the pre-owned watch market over the past twelve months, the demand for certain watches remains high. And where there is demand, there will be fraud.Late last year, I was talking with an international colleague about the increased prevalence of counterfeit watches and watch fraud. Asso often, with these conversations, we got on to the topic of counterfeit Rolex. Which is when they showed me the 'Rolex Day-Date' you see in the attached images. Like any good counterfeit, it has all the correct markings for the model. There are numerous little telltale signs on the counterfeit that would be red flags to anyone who knows what they are looking for. But for those that don't, it would and, as with this, did go unnoticed until it crossed my colleague's desk.But what makes this watch interesting is that it's gold, like a genuine Rolex Day Date. However, unlike a genuine Day Date, it's not 18ct gold. Standard acidic and precious metal tests put the gold purity near enough to 18ct that some may have passed it off as being within an acceptable tolerance of 18ct. And for the unsuspecting, it had a passable weight and feel. However, XRF analysis determined it to be at a purity level where, if hallmarked, it would have been marked as 14ct.The value of this watch is nothing more than the refinement or scrap value of the metal, which is several thousand short of what was paid or what it was insured for.This watch is reminiscent of the 14ct gold counterfeit Rolex I wrote about several years ago. So, there really is nothing new under the sun. Counterfeit watches and watch fraud are and will continue to be a problem. So be careful when buying a watch, and don't take what it purports to be at face value. #insurancebrokers #homeinsurance #fraudawareness #fraudprevention #jvaregisteredvaluer

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This, is exactly why I have invested so much time and money into training and equipment.And one of the many reasons why I don't do unsighted valuations. Just think about how many auctioneers, second-hand dealers, retailers, hobbyists with an online side hustle, or just Joe public have bought a diamond with a GIA report.Now, ask yourself how many of those could have been synthetic diamonds masquerading as natural.I guarantee that these stones are not confined to Italy, nor to just GIA reports.The only way to counter stones like these is to insist on a sighted valuation, where the valuer has the equipment to screen for synthetic diamonds. #insurancebrokers #homeinsurance #insuranceindustry #jewelleryvaluations #jvaregisteredvaluer

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I find many things annoying about the current pre-owned watch market, but one of my biggest pet peeves has to be the miss-selling of the accompanying box. Long ago, way before the insanity of the past few years, nobody kept the box for their watch.So, finding a pre-owned watch with its original box was unusual, and such watches tended to be traded for more money. Fast forward to today, and finding a watch without a box is nearly impossible.Still, the number of watches that cross my desk with boxes that are brand-correct but period-incorrect is crazy.The number of Rolex's, particularly from the 70s, 80s and 90s with modern boxes, is hilarious.But what isn't funny is that retailers are asking for top money because it has the box.I'd understand if it was the correct box for that age or model of watch.But to charge more because it has any box, regardless of whether it's the correct brand, is silly. So, to help you, especially if you're considering buying a pre-owned Rolex, I have attached images of three different Rolex box styles.1: The wooden box style from the mid-1990s to around 2005.2: The dark and light green box style from 2005 to around 2013/143: The lighter green and cream box style from 2014 to today.So if you're looking at a 1998 Datejust, it should only come in box-style one.And I will say that its OK to buy a watch without a box.You wear the watch, not the box. #consumereducation #consumerprotection #insurancebrokers #watches #jvaregisteredvaluer

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It's often said that the most important piece of equipment a valuer will ever own is their eyes.And like all equipment, education and training are required to ensure you get the most out of your equipment. This image shows a diamond with inclusions that appear as parallel rods.Which I appreciate means nothing to anyone without training, but for those of us who have, they are a red flag.These little rods look disconcertingly like metallic needle inclusions, often found in HPHT synthetic diamonds.Further testing confirmed that this stone was indeed an HPHT synthetic diamond, which was sad news to the client and the pre-owned jewellery company that sold it, as both parties purchased it as a natural stone.If it weren't for the lab-grown diamond course from Julia Griffith FGA DGA EG and The Gem Academy, I, too, would have missed the importance of these inclusions and failed to get the most out of my most important piece of equipment.Education and training never stops!#insurancebrokers #education #diamonds #jewellers #jvaregisteredvaluer

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