Appraising jewelry appraisals.(CR money)

When it comes to valuing Grandma's heirloom jewelry, the neighborhood jeweler, an appraisal company, or even a pawnshop will give you a dollar figure. But whom can you really trust?

That's hard to know because appraisals of the same piece of jewelry can vary widely, To see just how much, we solicited several for a vintage watch in Manhattan's 47th Street diamond district. First we asked Donald Palmieri, a Master Gemologist Appraiser certified by the American Society of Appraisers, to give the art-deco diamond wristwatch a thorough going-over. After spending almost two hours cleaning it and scrutinizing the diamonds and metalwork, he judged that it would fetch $1,550, an estimate he included in a folder with photos of the piece and a stone-by-stone description.

To see how close other appraisers came, we anonymously tried five--an independent appraiser and four retail jewelers. The values ranged from a lavish $3,500 to a measly $500. The retailers and appraiser raced through the valuations, most taking 5 to 10 minutes. Only two would give us an estimate in writing. Most erred, including the independent appraiser, who was supposedly more reliable because he neither buys nor sells jewelry He miscalculated carats and mistook platinum for less expensive white gold.

An inaccurate appraisal can cost you money, You wind up either spending too much on insurance or getting too little when you sell. The trick is getting an appraisal that's just right. Here's how to do it.

Decide whether an appraisal is necessary. Appraisals are pricey. Ours ranged from $45 to $150, but appraisers usually charge $75 to $150 an hour--and in some large cities as much as $225 an hour. A retail jeweler with no certification charged as $50 for a written appraisal.

So unless you own gems, sentimental items for which you want an identical replacement, or items worth more than $3,000, Palmieri says an appraisal isn't worthwhile. If you're unsure, hire an appraiser for a brief consultation to decide whether items need more scrutiny, or ask your insurer.

You can also skip an appraisal if you get a detailed sales receipt with a thorough description that insurers can use to set your coverage.