Eying a Fake

Posted in June 27, 2022 ¬ 11:11 amh.adminComments Off

Why having an eye for detail or gut instinct no longer cuts it, and how education is the key to protecting jewelry and allied professionals against fraud.

By Warren H. Morss, ASA, GIA GG

Today’s gems and jewelry market is filled with many challenges, especially when it comes to fraud. Reports of fake jewelry, fraudulent certificates and related scams are on the rise causing many in the industry to be very concerned.

Recent examples include warnings by:

Gemological Institute of America (GIA) on CVD laboratory-grown diamonds with counterfeit GIA inscriptions[i];
Jewelry Insurance Brokerage of North America (JIBNA) on counterfeit brands, misidentified gems, non-disclosure and deliberate fraud[ii].
American Bar Association (ABA) on inspired-by jewelry and IP infringement[iii]; and
US. Customs and Border Protection on fake stones, counterfeit jewelry and watches, and Kimberley Process Certificates[iv].

Jewelers and allied professionals including insurers, attorneys, law enforcement and government agency employees, all need to receive critical updates on fraud and unethical practices to better mitigate the risks of their respective companies or agencies and the consumers they serve to protect, and the best way to do this is to educate oneself on the latest standards and best practices.

This is particularly important when it comes to appraisers and appraisal reports. The old adage “the best way to eye a fake is to study the genuine” still holds true today. Understanding the education, accreditation, testing and ethical standards behind an appraiser’s credential is paramount and an important first step in the hiring or working with such professionals. Any shortcuts taken to save time or money has the potential of leading to delays, costly errors or disputes.

Equally important is knowing and understanding how appraisers work and reach their value conclusions. As the leading valuation education provider, ASA understands this better than anyone else. They have developed a new virtual appraisal course entitled, Appraising Gems and Jewelry for Insurance Scheduling, to educate jewelry and allied professionals on the fundamental concepts and basic knowledge to prepare an appraisal report.

Topics covered include: ethics, competency, primary roles of an appraiser, approaches to value, market types and layers, basic research concepts, recognizing jewelry manufacturing methods and their influence on the appraisal process, introduction to methods of data collection and analysis, and minimal reporting standards.

After completing the course, students will have a full understanding of:

how an appraisal report is developed;
why it should conform to USPAP national standards;
what should be in a report and why; and
when an appraisal report is legit or not.

Registration for the September 27-October 25, 2022 course offering in currently underway and available online at https://bit.ly/3A3adEv or by calling (800) 272-8258.

Many ASA-accredited gems and jewelry appraisers and Master Gemologist Appraisers® work directly with jewelers, insurers, attorneys, law enforcement and government agency employees in supporting their efforts against fraud. These highly experienced professionals assist in valuations, reviews, testing, litigation support and other related critical services. A free online listing of these experts is available at www.findanappraiser.org or by calling (800) 272-8258.

Warren H. Morss, ASA, GIA GG, is Managing Principal at Boston Estate & Gem Appraisal. Warren has over 45 years of experience in the Jewelry Industry and related fields. He has worked in wholesale and retail sales of loose and mounted diamonds, watches, and designer Jewelry. His clients consist of banks, attorneys, insurance companies and private individuals. He holds a Graduate Gemologist (GG) degree from the Gemological Institute of America (GIA) and an Accredited Senior Appraiser (ASA) designation from ASA. Warren also serves as Chair of ASA’s Gems & Jewelry Discipline, and instructor of the Society’s Appraising Gems and Jewelry for Insurance Scheduling course.