If you’ve purchased a luxury item or received one as a gift, keeping the documents that prove its authenticity is key when it comes to resale, auction, insurance, or tax purposes. It is wise to have the physical copy of these documents safely stored. With the high volume of fraudsters creating knock-off “luxury” items, keeping your documents as well as your original packaging proves beyond doubt your items are authentic.
Types of Valuable Properties
Luxury items run the gamut of all kinds of valuable properties. Here is a list of luxury categories for which you’ll want to keep the documentation.
- Fine jewelry
- Precious stones
- Fine art
- Sports memorabilia
- Family heirlooms
- Designer apparel
Records to Keep
Be sure to retain all the purchase records, including the amount paid along with the source of purchase. Authentication and certification paperwork is also a must for any original pieces. If your piece has been appraised by a qualified expert in that field, keep that documentation as well. Whether you’ve received the item(s) as a gift or by inheritance, it’s trickier to get your hands on documentation for your pieces. If documentation can’t be obtained directly from the source, it is a wise investment to have the piece(s) appraised or gather public information from readily available sources showcasing similar items.
For jewelry, watches, precious stones and the like, retain all gemology reports, which include the cut, clarity, and weight of the piece. Itemized and descriptive listings of your items is also important, as well as the original packaging your jewelry was purchased in, such as dust jackets and storage boxes.
Dust jackets and original covers are also important to keep for items of designer clothing and sneakers, especially if you intend to resell the item or to potentially increase the value of your piece for insurance purposes.
Fine art, furniture, and collections often have “provenance” records, which can greatly increase the value of an item. These records support the claim of authenticity. Examples of provenance include prior owners, a photograph of the item, prior appraised values, any dealer information, previous sales price, and your own proof of purchase.
Why You Need These Records
These records are vital to keep for several reasons. You’ll want to track the valuation and cost basis for your own net worth and estate planning purposes. You’ll need to keep track of the value of your piece if you’re gifting it as a charitable donation or for insurance purposes. These records are also vital should you sell the piece.
If your piece is ever lost, stolen, or damaged, you’ll have the documents you’ll need to make a claim with your insurance carrier. This will allow you to quickly provide information to process your claim and for a settlement that reflects the accurate value of your loss.
Documents for your valuables also help you to increase the knowledge of your own collection. You’ll be able to avoid buying any duplicates of what you might already own, such as wine or silver, and you’ll also be able to discern any missing pieces in your collection for future anniversary or birthday gifts for your spouse. They also allow you to keep “tabs” on any valuables that might particularly be prone to theft.
By knowing the pieces in your own collection, you can review the valuable articles policy with your insurance and decide whether you’ll need the piece added to your policy as a listed item or if blanket coverage will do.
If you have several luxury items, designer items, or original pieces in your collection, give Organized Instincts a call. Our seasoned team of daily money managers will create and maintain your luxury goods records allowing you to more readily prove their worth and authenticity. Schedule a free consultation today to discuss how to better manage, monitor and protect your valuables.