Jewellery Valuation Guide Malaysia: What You Need for Insurance

Your diamond ring was valued at RM50,000 when you bought it five years ago. You assume it's still worth that. You're probably wrong.

Diamond prices have fluctuated. Gold has moved. That valuation certificate in your drawer is outdated. If you need to claim, you might be arguing about value instead of getting replaced.

Proper jewellery valuation isn't about knowing what you paid. It's about knowing what replacement costs today.

This guide covers:

• Types of jewellery valuation
• How diamonds are valued
• How gold is valued
• Gemstone valuation basics
• Getting a professional appraisal
• Documentation for insurance
• When to revalue

Types of Jewellery Valuation

Different purposes require different valuations:

Valuation Type	Purpose	Basis
Insurance replacement	What insurers use	Cost to replace with equivalent
Market/resale	What you could sell for	What buyers would pay
Liquidation	Quick sale value	Typically lowest
Intrinsic	Material value only	Melt value of gold + stones

For insurance purposes, you need replacement value: what it would cost to replace the piece with one of equivalent quality.

Insurance Replacement Value

What It Includes	Why It's Higher Than Resale
Retail markup	You'd buy replacement at retail
Craftsmanship	Labour to recreate
Current material costs	Gold, diamonds, gems at today's prices
Matching quality	Same grade, not lower

Insurance replacement value is typically higher than what you could sell the piece for. This is normal and correct for insurance purposes.

Diamond Valuation: The 4Cs

Diamond value depends on four primary factors:

Cut

Grade	Quality	Value Impact
Excellent/Ideal	Maximum brilliance	Highest
Very Good	Slight deviation	High
Good	Noticeable deviation	Moderate
Fair/Poor	Significant impact on brilliance	Lower

Cut affects how the diamond handles light. It's arguably the most important factor for appearance.

Colour

Grade	Description	Value Impact
D-F	Colourless	Highest
G-H	Near colourless	High
I-J	Slight tint	Moderate
K+	Noticeable colour	Lower

Graded on a scale from D (colourless) to Z (light yellow/brown).

Clarity

Grade	Inclusions	Value Impact
FL/IF	Flawless/Internally Flawless	Highest
VVS1/VVS2	Very Very Slight	Very High
VS1/VS2	Very Slight	High
SI1/SI2	Slight	Moderate
I1/I2/I3	Included (visible)	Lower

Clarity grades describe internal and external characteristics.

Carat

Size	Relative Value
Under 0.5ct	Price per carat lower
0.5-0.99ct	Moderate per carat
1.00ct+	Premium at round numbers
2.00ct+	Significant per carat premium

Carat measures weight, not size. Price per carat increases at key thresholds (0.5, 1.0, 1.5, 2.0).

Certification Impact

Lab	Recognition	Impact
GIA	Gold standard	Commands premium
AGS	Highly respected	Strong value
IGI	Widely recognised	Good value
Local/uncertified	Limited	Affects resale and insurance

GIA-certified diamonds command premiums and have clearer valuation benchmarks.

Gold Valuation

Gold jewellery value has two components: material and craftsmanship.

Gold Purity

Purity	Karats	Gold Content	Common Use
99.9%	24K	99.9% pure	Investment bars, some Asian jewellery
91.7%	22K	91.7% pure	Traditional Asian jewellery
75%	18K	75% pure	Fine jewellery standard
58.5%	14K	58.5% pure	Common in Western jewellery
37.5%	9K	37.5% pure	Entry-level jewellery

Higher karat means more gold content and higher material value.

Gold Weight

Gold is measured in grams or troy ounces for valuation purposes.

Measurement	Calculation
Weigh the piece	Total weight in grams
Calculate gold content	Weight × purity percentage
Current gold price	Check spot price
Material value	Gold content × current price

Example: 18K gold ring weighing 10g

• Gold content: 10g × 75% = 7.5g pure gold
• If gold spot is RM280/gram
• Material value: 7.5g × RM280 = RM2,100

Making/Craftsmanship Charges

Factor	Impact
Complexity of design	More intricate = higher labour
Brand name	Designer pieces command premiums
Handmade vs machine	Handcrafted typically higher
Setting work	Especially for gemstones

Retail pieces include significant making charges above material value. A simple chain has lower making charges than an intricate bracelet.

Malaysian Gold Market Specifics

Factor	Note
916 gold dominant	22K (91.6%) is most common
Daily price fluctuation	Check current rates
Hallmarking	Look for 916, 750, or 375 stamps
Buy vs sell spread	Shops buy below spot

Malaysia's jewellery market predominantly uses 916 (22K) gold, different from Western markets where 18K and 14K are standard.

Gemstone Valuation

Beyond diamonds, coloured gemstones have distinct valuation factors.

Key Factors

Factor	Impact
Type	Sapphire, ruby, emerald, etc.
Colour	Primary factor for most gems
Clarity	Tolerance varies by gem type
Cut	Affects brilliance and weight retention
Carat	Size and rarity
Origin	Certain origins command premiums
Treatment	Natural vs treated affects value

Origin Premiums

Gemstone	Premium Origins
Ruby	Burma (Myanmar), unheated
Sapphire	Kashmir, Ceylon (Sri Lanka)
Emerald	Colombian, Zambian
Jade	Myanmar (Type A)

Origin and treatment disclosure are critical for accurate valuation.

Treatment Disclosure

Treatment Level	Value Impact
No treatment	Highest value
Minor treatment (heating)	Accepted, lower premium
Significant treatment	Substantially lower value
Undisclosed treatment	Problem for valuation and insurance

Natural, untreated gemstones of good quality command significant premiums.

Getting a Professional Appraisal

For insurance purposes, professional appraisal is essential for valuable pieces.

Who Can Appraise

Appraiser Type	Best For
Certified gemologist (GIA GG, FGA)	Comprehensive valuations
Accredited appraiser (AAA, ASA)	Insurance-focused
Jewellery store valuation	Convenient but verify credentials
Auction house	Pre-auction estimates

Look for credentials: GIA Graduate Gemologist, Fellow of the Gemmological Association, or equivalent professional qualifications.

What's Included in Professional Appraisal

Component	What It Provides
Detailed description	Materials, measurements, condition
Diamond grading	4Cs assessment
Gemstone identification	Type, treatment, origin if determinable
Metal analysis	Purity confirmation
Photographs	Visual documentation
Replacement value	Insurance-appropriate figure
Appraiser credentials	Professional standing

Appraisal Costs Malaysia

Item Type	Typical Cost Range
Single ring	RM100-300
Diamond certificate check	RM50-150
Full collection appraisal	Per-piece or hourly
Update/revaluation	Often lower than initial

Costs vary by complexity and appraiser qualifications.

Choosing an Appraiser

Criterion	Why It Matters
Credentials	Verify professional qualifications
Independence	Not trying to sell you something
Insurance experience	Understands what insurers need
Equipment	Proper testing tools
Reputation	Check references

Avoid appraisals from places that might benefit from overvaluation (e.g., the store selling you the piece).

Documentation for Insurance

Your insurer needs specific information:

Minimum Documentation

Document	Purpose
Appraisal certificate	Professional valuation
Photographs	Visual record
Purchase receipt	Ownership proof
Diamond certificate (if applicable)	GIA, IGI, etc.

Photograph Requirements

Photo	What to Capture
Full piece	Overall appearance
Close-up of stones	Cut, setting
Hallmarks	Purity stamps
Identifying features	Engravings, unique characteristics
Certificate/papers	Documentation

Information to Record

Field	Example
Description	18K white gold diamond engagement ring
Metal	18K (750) white gold, 5.2g
Centre stone	1.02ct round brilliant, F colour, VS1 clarity
Side stones	0.30ct total, G colour, VS clarity
Certificate	GIA #123456789
Setting type	Six-prong solitaire with pavé band
Ring size	UK N / US 6.75
Appraised value	RM45,000
Appraisal date	February 2026

When to Revalue

Jewellery values change. Your documentation should keep pace.

Revaluation Triggers

Trigger	Action
Annual policy renewal	Consider if market moved significantly
Gold price shift 20%+	Update gold jewellery values
Diamond market changes	Review diamond piece values
After major repair	Get updated appraisal
Inheritance	Appraise inherited pieces
Significant market events	Economic shifts affecting prices

Market Monitoring

Material	Where to Check
Gold	Daily spot prices, Federation of Goldsmiths rates
Diamonds	Rapaport (trade), market indices
Gemstones	Less transparent, specialist knowledge needed

For gold jewellery, significant gold price movements warrant revaluation. For diamonds and gemstones, professional reappraisal every 3-5 years is reasonable.

Common Valuation Mistakes

Mistake 1: Using Purchase Price Forever

You paid RM20,000 in 2015. Gold has risen 50% since then. Your piece is now worth RM28,000+ at replacement value. Insuring at RM20,000 leaves you underinsured.

Mistake 2: Using Sentimental Value

Your grandmother's ring is priceless to you. But insurers pay replacement value, not sentimental value. Value it for what equivalent quality costs.

Mistake 3: No Professional Appraisal

"It cost RM30,000" isn't documentation. A professional appraisal provides defensible valuation basis.

Mistake 4: Outdated Appraisal

That appraisal from 2018 doesn't reflect 2026 values. Update regularly.

Mistake 5: Forgetting Pieces

The earrings you rarely wear. The bracelet in the drawer. Include everything valuable in your documentation.

Mistake 6: Not Disclosing Treatments

Your "natural" ruby was heat-treated. This affects value significantly. Accurate disclosure prevents claim disputes.

FAQ

How often should I get jewellery reappraised?

Every 3-5 years for significant pieces, or sooner if markets move substantially. Gold jewellery should be reviewed when gold prices shift significantly.

Does my insurance cover the appraised value automatically?

Not necessarily. You need to declare values to your insurer and ensure coverage limits match. Appraising at RM50,000 but insuring for RM30,000 leaves you underinsured.

Can I use store valuations for insurance?

Some insurers accept them, others require independent appraisals. Store valuations may be inflated. Independent appraisals are safer.

What if I can't prove I own a piece?

Document what you can: photos of you wearing it, family records, any partial documentation. Explain the situation to your insurer. Some coverage is better than none.

Are lab-grown diamonds valued differently?

Yes. Lab-grown diamonds cost significantly less than natural diamonds of equivalent specifications. Ensure your appraisal correctly identifies whether diamonds are natural or lab-grown.

Does heritage or antique status affect value?

Yes. Antique pieces (100+ years) and heritage pieces may have value beyond material and craftsmanship due to rarity and collectibility. Specialist appraisers can assess this.

What if my gold jewellery has mixed purity?

Document each piece's purity separately. A collection with 916, 750, and 375 pieces should have each valued according to its actual gold content.

Should I declare my entire jewellery collection?

Declare everything valuable. Unscheduled items may have lower coverage limits or more restrictions. For significant pieces, specific scheduling provides better protection.

MINT Conclusion

Jewellery valuation isn't about knowing what something cost. It's about knowing what it would cost to replace today, documented properly so there's no dispute when you need to claim.

For valuable pieces, professional appraisal is worth the cost. For gold jewellery, tracking market prices and updating values keeps you properly covered.

MINT provides Jeweller's Block coverage for Malaysian jewellers, with valuations and coverage structured for how fine jewellery is actually stocked and sold.

Speak with MINT about coverage