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Is the appraisal intended to be higher than what I paid?

 

After purchasing your diamond engagement ring for the thousands of dollars it set you back, it may come as a pleasant surprise when the appraiser tells you it is worth more than what you paid. Unfortunately, you did not just hit the prenuptial lottery. Appraisers give the jewelry items they appraise what is referred to as the "retail replacement value" of the item. This value is often inflated or marked-up to up to 10 percent of what the actual retail price is. The reason for this is simple - purchasers feel they are getting a bargain when they are told they purchased their diamond below what it is worth.

Although this may seem to be a somewhat shady business practice, and many argue that it is, it is so common that it is now an industry standard and something that is universally shared by all diamond purchasers. As long as you are expecting the mark-up, you can figure what kind of actual "deal" you are getting on you diamond.