Understanding how your luxury assets are valued for a collateral loan helps you walk in informed — and walk out with the best possible offer. Beverly Loan Company employs certified specialists in every category we lend against: gemologists for jewelry and diamonds, horological experts for watches, art market professionals for fine art, and automotive specialists for classic and exotic cars. Here is exactly how we approach valuation across each asset class.
What Is a Collateral Loan Appraisal?
A collateral loan appraisal is a professional assessment of an asset’s current secondary market value — the price a willing buyer would pay a willing seller in an arm’s-length transaction today. This is different from replacement value (used for insurance) or original purchase price. For collateral lending purposes, what matters is what your asset would actually realize in the current market.
Beverly Loan Company appraises assets at no charge as part of the loan consultation process. There is no obligation to accept a loan offer after your appraisal.
How Jewelry and Diamonds Are Valued
Diamond and jewelry valuation at Beverly Loan Company is conducted by GIA-trained gemologists using professional grading equipment. Key factors include:
- The 4Cs for diamonds: Carat weight, cut quality, color grade, and clarity grade — the same framework used by GIA, the global authority in diamond grading
- Certification: GIA-certified stones receive a premium over uncertified stones of similar apparent quality, as certification independently confirms grade
- Metal value: The current spot price of gold, platinum, or silver in the setting, assessed by weight and purity (karat)
- Brand and maker: Signed pieces by Cartier, Van Cleef & Arpels, Tiffany & Co., Harry Winston, and other prestigious houses command significant premiums
- Auction comparables: Recent realized prices for comparable pieces at Christie’s, Sotheby’s, and Bonhams jewelry sales
How Luxury Watches Are Valued
The luxury watch secondary market is one of the most data-rich asset classes Beverly Loan Company lends against. Valuation factors include:
- Brand and reference number: Rolex, Patek Philippe, Audemars Piguet, Richard Mille, and F.P. Journe hold value at different levels even within their own catalogues — the specific reference is critical
- Completeness: Original box, papers (certificate of origin), links, and accessories significantly affect secondary market value
- Condition: Case sharpness, dial originality (unpolished, unrestored dials command a premium), and service history
- Current secondary market pricing: We reference Chrono24, Bob’s Watches, Watchbox, and recent auction results for live market pricing
- Rarity and production numbers: Limited editions, discontinued references, and low-production pieces command premiums over current production watches
How Fine Art Is Valued
Fine art valuation is the most nuanced category because there is no universal price database. Beverly Loan Company evaluates art based on:
- Artist’s auction record: Recent realized prices at Christie’s, Sotheby’s, Phillips, and Bonhams for the same artist and comparable works
- Provenance: Documented ownership history, gallery exhibition records, and certificate of authenticity
- Condition: Presence of restoration, conservation issues, or damage materially affects loan value
- Medium and size: Original oil paintings by a given artist typically outperform works on paper or prints at auction
- Market demand: Whether the artist is currently in high institutional demand affects secondary market pricing
How Classic and Exotic Cars Are Valued
Automotive collateral valuation at Beverly Loan Company considers:
- Matching numbers: Original engine and drivetrain matching the VIN significantly increases collector value
- Documented history: Service records, ownership history, and provenance documentation
- Condition and restoration: Concours-quality original paint commands more than a repaint; driver-quality cars are valued differently from show cars
- Current auction and dealer market: We reference Hagerty Valuation Tools, recent Barrett-Jackson and RM Sotheby’s results, and active private market listings
- Rarity: Production numbers, factory options, and special order configurations
What Determines Your Final Loan Offer?
Once Beverly Loan Company has appraised your asset, the loan offer is typically set at 50–70% of authenticated current market value. This loan-to-value (LTV) ratio reflects the short-term nature of collateral loans and provides a margin for market fluctuation during the loan period. Higher-liquidity assets — such as gold bullion, major-brand watches with strong secondary market demand, or GIA-certified diamonds — often qualify for LTV ratios toward the higher end of this range.
Frequently Asked Questions About Luxury Asset Appraisals
Is the appraisal at Beverly Loan Company free?
Yes. All appraisals conducted as part of the collateral loan consultation are complimentary. There is no charge and no obligation to accept a loan offer.
Can I get an appraisal just for my own information, without taking a loan?
Our appraisals are conducted specifically to support loan decisions. If you need a formal written appraisal for insurance, estate, or tax purposes, we recommend engaging a certified independent appraiser.
How does Beverly Loan Company’s appraisal compare to a retail jewelry store?
Retail jewelry stores typically provide replacement value appraisals — the cost to replace an item at retail, which is always higher than secondary market value. Beverly Loan Company appraises at current secondary market value, which is the relevant benchmark for collateral lending. These are two very different numbers.
What if I disagree with Beverly Loan Company’s valuation?
You are never obligated to accept our offer. If you believe your asset is worth more, you’re welcome to seek independent appraisals and return with additional documentation. We base all valuations on current market data and are happy to discuss our methodology with you.
Ready to find out what your luxury assets are worth? Schedule a private, complimentary appraisal at Beverly Loan Company’s Beverly Hills office today.