Conflict of Interest

Question: Isn’t it a conflict of interest for a jeweler to appraise jewelry?

Beware Self-Interest

Conflict of InterestIt would be if the jeweler sold you a ring and then appraised it for you. He would be hard-pressed not to exaggerate the value to his own benefit.

Appreciate Inside Knowledge

On the flip side, being a jeweler should make a jewelry appraiser more knowledgeable about jewelry and pricing. That makes the jeweler/appraiser a good choice for jewelry he hasn’t sold you.

The same holds true for real estate appraisers/agents, fine art appraisers/gallery owners, machinery appraisers/auctioneers. Etc.

Never Ask the Barber

In short, there is only a conflict of interest when the appraiser and the seller of an item are one in the same. As Warren Buffet said “Never ask the barber if you need a haircut.”

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