How much is jewellery worth? This is a common question in the jewellery industry. Many myths surround jewellery valuations. The process becomes more complex when insurance is involved. Jewellery valuation certificates help both jewellers and customers. However, there is much confusion about their purpose. This is especially true for valuations used for insurance. Many people misunderstand how valuations work. This leads to debates in the jewellery industry.
Common Myths About Jewellery Valuation
Jewellery businesses must ensure accurate valuations. Incorrect valuations cause problems for customers and insurers. Some customers even complain when jewellery is valued lower than expected. Modern valuation methods reflect market trends. Businesses that fail to update their processes may face challenges.
Issues with Jewellery Pricing
Online jewellery valuations also raise concerns. Some retailers issue misleading valuation certificates. Customers must understand these certificates before purchasing jewellery. The National Council of Jewellery Valuers has warned members about valuation misuse. Proper valuation practices build trust between jewellers and customers.
The Cost of Jewellery Valuations
Jewellery valuation methods have changed over time. The market now influences valuation more than before. If the industry does not adapt, some jewellers may face losses. Some online retailers provide valuation certificates. However, customers must understand these certificates before purchasing jewellery. Misleading valuations can cause problems.
Warnings from Industry Experts
The National Council of Jewellery Valuers has issued warnings about the use of valuations in retail. Jewellers must follow ethical practices when providing valuation certificates. Some experts argue that valuations for new jewellery are misleading. A ring bought for AED 4,500 today should not be valued at AED 6000 tomorrow. This raises concerns within the industry. Jewellers and insurers often disagree about valuation. Some retailers feel that insurance companies undervalue jewellery. At the same time, insurers believe jewellers overprice their pieces.
Challenges in Insuring Jewellery
Insurance for jewellery can be complex. Many customers struggle to understand valuation when insuring their jewellery. Even insurance professionals sometimes find it difficult to explain.
SUNFACET ERP helps jewellers manage valuations efficiently. It ensures accurate pricing and eliminates errors. The system updates valuation methods based on market changes. It also provides detailed reports for insurance purposes. Insurance companies often struggle with jewellery valuations. Some rings bought for AED1,200 are later valued at AED2000 or more. This causes confusion and disputes. The jewellery and insurance industries must work together. Better valuation practices benefit both sides.
With SUNFACET ERP, jewellers can provide clear, reliable valuations. The system records pricing history and valuation trends. It also improves customer confidence. Jewelley businesses using accurate valuation methods build stronger reputations.
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