Assets 2018: Spotlight on Sunday’s Program

Kathi Jablonsky,
ISA CAPP

You can achieve gold at Assets 2018 by attending our expert-led educational sessions around the theme "The Gold Standard: Innovation and Valuation." Here’s an inside look at our planned programming for Sunday, March 11.

Beyond Readily Apparent Identity
9:00-10:00am

Sunday morning starts off with "Beyond Readily Apparent Identity" by ISA CAPPs and past presidents Cindy Charleston-Rosenberg and Todd Sigety. Their presentation will explore situations where identity disclaimers can be used or when deeper work is required.

Following this session, you'll enjoy your choice of break-outs through the afternoon. You'll have a hard time choosing between our fabulous speakers.

Break-Out I
10:10-11:20am

• Session A: Art - A Source of Liquidity. Learn about evaluating art and other personal property assets to be used as loan collateral. Presented by John Arena, US Trust.
• Session B: Discovering California Pottery. Explore colorful and delightful mid 20th-century pottery with Bill Stern, book author and California Design Museum Director.
• Session C: New Appraisers Guide to the Galaxy. Kirsten Smolensky, JD, ISA CAPP, and ISA’s Core Course instructor will touch upon many of the key areas of appraising. New appraisers will find practical advice on building their practice.

Moon and Half Dome
Ansel Adams

Break-Out II: Good, Better and Best
1:05-2:20pm

• Session A: Ansel Adams Photographs. Be enlightened about the preeminent 20th century photographer of the American landscape, and compare valuation characteristics for his iconic works. This session will be led by Brittany Moorefield, Director of Photography Sales at Ansel Adams Gallery.
• Session B: American Furniture and Silver. Brooke Sivo, Director of American Furniture & Decorative Arts at Bonham’s, will teach us to compare and rate examples of furniture and silver based on design and craftsmanship.

Break-Out III
2:25-3:40pm

• Session A: Stop, Look and Listen: Using Connoisseurship to Navigate the Contemporary Art Market. Holly Sherratt, Director of Modern and Contemporary Art for Heritage Auctions, will inform us about the Post-War and Contemporary sector, which has been dominating the fine art market.
• Session B: Stay Golden! Explore What Glitters in Costume Jewelry. Discover costume jewelry makers and the current market in this dazzling presentation by Rosalie "Rhinestone Rosie" Sayyah.



Rosalie "Rhinestone Rosie" Sayyah

• Session C. The Intersection of Appraising and Wealth Management: Working with High-Net Worth Clients, Their Collections and Their Insurance Carriers. This session will be presented by AIG Directors Danna Kay and Barbara Chamberlain and moderated by Todd Sigety, ISA CAPP. Find out why a collaborative approach is necessary to work with high-net worth clients.

Break-Out IV
4:00-5:00pm

• Session A: Eight Street Artists to Watch in 2018. Investigate the major players in the contemporary street art scene and their place in the art market. Led by Tim Luke, CAI, BAS, MPPA, ISA AM, President, TreasureQuest Group, Inc., and Executive Director, Contemporary and Street Art for Julien’s Auctions.
• Session B: American Innovations: Studio Glass. Bruce Orr, Owner of Jaremos and art glass consultant, will lead us on a journey from the launch of the American Studio Glass movement in the 1960s through the explosion of studio glass artists and the current market.

Liquid Assets: Wine Investment and Appreciation
5:00-6:00pm

Sunday’s educational programming will conclude with Liquid Assets, by Amanda Crawford, Director of Fine and Rare Wines for Heritage Auctions. Find out about wine investment and appreciation while tasting delectable California wines.

View the full conference program.

Read the first part of our deep dive into Assets 2018 programming, focused on Saturday's educational offerings.

If you haven’t already, register today to attend Assets 2018. It will be ISA’s first conference in the golden state, and you don’t want to miss it!

Kathi Jablonsky, ISA CAPP, is co-chair of the ISA Annual Conference Committee.

Submit Your Nominations for ISA Awards

Libby Holloway, ISA CAPP
Awards Committee Chair

Once a year, ISA’s members are asked to help identify those in the organization who have inspired them by an accomplishment or act of service. ISA is a volunteer-run organization with many members who spend hours contributing to the good of the entire membership. There are others who use their gifts to inform the general public about the importance of using professional appraisers through speaking or writing. Recognizing these people is one of my favorite parts of Assets.

I’m sure you can think of members who seem to be especially generous with their time and who certainly deserve thanks. There are some familiar faces who always seem to be involved. To me, it is really exciting when someone is awarded who is either new to the organization or who has been working quietly for a while and has never been recognized.

I challenge all of you to spend a little time thinking of members you know who deserve recognition and to nominate them this year. You can also promote your chapter by nominating it for Chapter of the Year.

Spend a few minutes looking through the award descriptions and see who you know who fits each one, and submit your award nominations through our online form. The deadline for submission is Friday, January 26.

This year, awards will be given in the following categories:

• Lamp of Knowledge - Awarded to one ISA member for a singular outstanding educational work product pertaining to the appraisal profession as a whole or in a specialty area.
• Leadership - Awarded to one ISA member in a leadership position for outstanding service above and beyond what is normally expected.
• Rising Leader - Awarded to one ISA member who is new to a leadership position for outstanding service above and beyond what is normally expected.
• Distinguished Service - Awarded to one ISA member in each of the following four categories: Antiques, Furnishings + Decorative Arts; Fine Art; Gems & Jewelry; and Machinery & Equipment for outstanding achievements or participation in the appraisal profession.
• Chapter of the Year - Up to two awards available: one for chapters in existence more than three years, and one for chapters in existence three years or less.
• Service - Awarded to two outgoing ISA members who have held volunteer leadership positions in either the Board Member or Committee Chair categories.
• ISA Instructor Distinguished Service - Awarded to one instructor for outstanding appraisal instructional achievements in and beyond the physical classroom; positive reviews from current and past students; and for inspiring appraisal methodology excellence within our membership.

It is now easier than ever to make nominations by filling out the short form. You may make more than one nomination but must revisit the form for each. Awards are given based on merit rather than frequency of nomination so please be detailed when you are describing your nominee’s accomplishments.

All of you who do such a great job representing the spirit of ISA and our industry every day deserve a big thank you. Keep up the good work!

Remember to put registering for Assets 2018 in Pasadena on your holiday to-do list, especially before prices increase on January 31. I’ll see you there!

Libby Holloway, ISA CAPP, is chair of the ISA Awards Committee.

The Third Track: Generalist Sessions at Assets

Elise Waters Olonia,
ISA AM

In a matter of days, we’ll be gathering at this year’s Annual Conference. You may have heard some buzz around the term “The Third Track,” referring to our generalist break-out groups on Sunday, perfectly suited for those who specialize in appraising estates. The term "Third Track" certainly creates intriguing visual imagery, especially in the historically rich town of Chicago!

Although we won’t be meeting in Union Station, some of us who focus on estates share a few of its attributes. For example, estates can be the ultimate gathering place for antiquities, intriguing artifacts and endless stories. Like Union Station, there may be underground treasures to discover. When an estate needs evaluating, there’s usually some bustling and fast movement, depending on the client’s itinerary!

“Get on board” and take a look at the Sunday program. There are three Generalist sessions which may get you on track if you don't specialize in only Fine Arts or Antiques, Furnishings + Decorative Arts! In the first session, James Jackson from Jackson’s Auctions will address those interested in the basics of general appraisals and estate liquidation in today’s market. The second session features our experienced instructor Mickey Logan and his student Carol Matesic, who will discuss their personal challenges with identifying comparables for unique items. Concluding the session, Carol Meyers Madden, writer and expert for EstateSalesNews.com, will share her knowledge on expanding your business through estate sales.

Enjoying education at Assets 2016

If you’re currently working with estates or considering this “Third Track” for the first time, be sure to consider attending one or more of these informative and enriching sessions. These experts have many stories to share and answers for your questions! See you there!

Elise Waters Olonia, ISA AM

Conference Chairperson

How to Build Your Foundation at Assets 2017

Maureen S. Winer, ISA CAPP

This year, our theme for Assets is “The Architecture of Appraising: Building on a Solid Foundation.” We chose this theme because any successful career in appraising starts with a strong base of knowledge.

With that in mind, we have designed our Assets 2017 program to give you the essential basics you need for your business as well as an in-depth look at crucial topics.

I've highlighted some of our planned programming below, but be sure to visit our mobile-friendly site to view full session descriptions and speaker bios. And if you haven't yet registered, do so now! Trust me; you don't want to miss it.

Saturday Programming Highlights

On Saturday, April 1, our program will focus on current trends in the appraisal business, including how technology has vastly increased opportunities for buying and selling works. In the morning, Evan Beard of the US Trust (and formerly a U.S. Naval Intelligence Officer) will give an overarching perspective on how millennials, Gen-Xers, baby boomers and millionaires are affecting global markets. Later in the day, Pip Deely of the art startup CollectorIQ will speak on the latest in apps, databases and imaging tools that can enhance the appraisal process and keep you up-to-date in your business.

The Palmer House Hilton in Chicago, home of Assets 2017

Part of understanding current trends in appraising is building a career while dealing with the challenges of the current art ecosystem and beyond. On Saturday, a panel of experts from Chubb Personal Risk Services, the Estate Planning Law Group and the Art Institute of Chicago will dive deeper into receiving referrals from and building relationships with gatekeepers from the insurance, estate and museum industries.

With Joshua Kaufman, ESQ, an expert on art law, we will discuss fakes, forgeries and when to connect with a lawyer on issues of provenance and authenticity.

Sunday Programming Highlights

As we progress to Sunday’s educational programming, we will focus on building skills like appraising an archive, which ISA’s own Leila Dunbar will guide us through in the morning. She’ll note the types of organization, methodology and valuation needed for such a project, as well as how to work with archivists, curators, and collectors.

For an invaluable exploration of the basics of the appraisal business, Sanjay Kapoor of ISA will moderate a panel of ISA CAPPs, Perri Guthrie, Judith Martin and Diane Marvin, who will answer your how-to questions as well as share their experiences and best practices.

ISA member panel (clockwise from left):
Perri Guthrie, ISA CAPP, Judith Martin, ISA CAPP,
moderator Sanjay Kapoor, and Diane Marvin, ISA CAPP

Sunday will conclude with a number of breakout sessions exploring topics related to Antiques, Furnishings + Decorative Arts, Fine Art and appraising in general even further.

In the Antiques, Furnishings + Decorative Arts category, Alexander Eblen of Leslie Hindman Auctioneers will discuss authenticity issues in jewelry and timepieces, and Libby Holloway, ISA CAPP, and Jacqueline Snyder, ISA AM, will dive into a lecture on finding comparable items when the item you are appraising is unique, has no market, or the artist is unknown.

Those interested in Fine Art can hear Professor Henry Adams speak on art forgery, and Meredith Meuwly, ISA CAPP, and Lisa Lowy, ISA AM, will give a similar comparables lecture to the Fine Art crowd.

View our full session descriptions and speaker bios.

Maureen S. Winer, ISA CAPP

A Real 'Name'-Changer

by Maureen S. Winer, ISA CAPP, Chair of Antiques, Furnishings + Decorative Arts (AFDA)

Say goodbye to "ARC" and hello to "AFDA!"

I am thrilled to announce that the ISA Board has approved the Antiques & Residential Contents (ARC) Committee’s recommendation to change the name of the ARC division to Antiques, Furnishings + Decorative Arts, otherwise referred to by its acronym AFDA.

Why the change? For years, I have believed that ARC did not properly reflect my appraisal business, nor that of most of my fellow appraisers. Sure, it is primarily an internal name and the general public is not aware of the title. Still, we are. So why does this matter? The answer is, we should be represented by a name that is consistent with our desired image; it should state our expertise and should last the test of time. The name should also represent the majority of our members.

The (former ARC) committee members agreed unanimously that a name change was necessary; therefore, we embarked on a mission to find the right name. Through much discussion and debate, and with welcome input from Libby Holloway, we chose Antiques, Furnishings + Decorative Arts. It should be noted that we had an extensive discussion regarding our Gems and Jewelry appraisers; although they remain a part of the AFDA division, we recognize that we need to help them reestablish their own voice over the coming years. The Annual Conference Committee has made sure that there will be plenty of relevant presentations and breakouts to please our Gems and Jewelry appraising members at the upcoming Assets 2017 in Chicago, March 31 – April 3.

Many thanks to our committee members—Bridget Donnelly, Kurt Soucek, Mary Alice Manella, Rudy Pena, Sanjay Kapoor, Lisa Duke and Catherine Sanky. If you would like to become a part of our committee, please contact me at maureen@pwpusa.com.

Ask Leon: A Question of Intended Use, Limiting Conditions, and Opinion of Value

ISA members are invited to send in their questions on all things appraising and education to Leon Castner, ISA CAPP. Leon will share his answers on the ISA Now Blog. Please send questions to leoncastner@comcast.net.

A Question of Intended Use

Question: I'm working with a city parks department to appraise their art collection. It was previously appraised in 1999 and they want it updated. I assumed they would want an insurance appraisal, but they said they have insurance coverage for everything, so it’s not necessary. But when I ask them about the intended use of the appraisal, they are vague and say they just want to know the current value. They don't plan to sell, and in fact and are interested in current condition reports as they want to get a few outdoor sculptures repaired. What should I suggest to them in terms of a type of appraisal? Any thoughts on other questions I should be asking?

Answer: Well, you must have an intended use to form an objective to provide a scope of work, etc. If it's for their own knowledge or for financial considerations or whatever, have them state it in a letter to you. If it's any of those, you can provide a market value or a market value range. In the report you will say it can't be used for any other intended use like insurance coverage. Although it's a little too vague for my liking, as long as you can match the objective to an intended use and then develop a scope of work, it's ok. Make sure you get something in writing, however, since they may think they can use it for anything.

Limiting Conditions

Question: A quick question: where do I put a limiting condition in my appraisal? Do I write it in body of the appraisal or the cover document? There was one bedroom closet that I couldn't get into because a mattress and box spring was against it. I have no idea what was in the closet.

Answer: The quick answer is that a limiting condition is stated in the cover document. It is also referenced in the certification where you state that “the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions…” The interesting point of a non-accessible closet is that it could be empty or it could contain all the good stuff. (I once did an appraisal where I got into a closet and found all the artwork which had been piled up from the walls of the house. After I did the report and sent it in, they told me I wasn’t supposed to do that closet. They were items “not belonging to the estate.” Right! (That’s another story.)

You should have asked the client or owner to move the bedding to gain entry or asked what they thought was in there. If they said, “Nothing,” or something to that effect, you could make a critical assumption that they were being truthful and put down no value. I would still explain this in your cover document and give the limiting condition (couldn’t gain access) and critical assumption (it had no value).

Appraisal Not Needed…or Is It?

Question: I have a bank that just needs an estimate of value – can I write that as an appraiser? Just one page report with values or does it need to be an appraisal?

Answer: This question is covered by USPAP. An “opinion of value,” whether it’s called an estimate of value, a determination of fair market value, or estimation of costs or worth, is still an appraisal. Since you are acting as an appraiser in providing this service, you must follow USPAP. That includes all the rules and the standards. This should probably be an “appraisal report” rather than a “restricted report”, but it falls under USPAP. You must follow all of the ISA report writing standards as well. The bank should know better. Shame on them.

Jewelry Hallmarks

Question: Does ISA require that jewelry hallmarks be identified rather than just noted?

Answer: No. ISA does not specifically require that hallmarks be identified rather than noted, but information relevant to the appraisal process, including physical and value characteristics, must be included in appraisal reports. If the hallmarks identify the country, standard, date, or maker, they are extremely significant – just like an artist’s signature on a painting. Not knowing or misreading a mark, or signature, could be a serious problem and lead to an incorrect valuation.

Appraise the Stone, Not the Paper

By August Monteleone, ISA

The end of this article contains a response by grader, Paul Cassarino, ISA CAPP

In the diamond industry, there is an often-repeated adage, “Buy the stone, not the paper.” This refers to the fact that a diamond grading report does not tell you everything you need to know about a stone. More important, though, is the fact that some labs are more lenient on grading than others; to the point that consumers have filed several lawsuits against diamond sellers, citing deceptive practices.

One lab in question is EGL International whose reports have been de-listed by the Rapaport Diamond Network and Polygon Wholesale Jewelry Trading Network, two of the largest dealer-to-dealer diamond trading platforms (Rapaport also de-listed EGL-USA, a separate entity from EGL International, but Polygon did not). The major problem with the lax grading from some labs is the fact that they all use the terminology of the Gemological Institute of America (GIA).

When Talking about GIA terminology, what I’m referring to is the four C’s, as well as other information, like polish, symmetry and florescence. All of the reports use the GIA terms for color (or the D-Z scale), clarity - Flawless (FL) – Included 3 (I3). Though some include the clarity of Slightly Included 3 (SI3) – the GIA does not use this term. The Carat scale is the standard for weight then the cut (Only on rounds for GIA since about 2006), Polish and symmetry are communicated on a scale from Excellent to Poor and florescence is graded from None to Very Strong.

Since all of these labs use this terminology, you would think that a diamond graded as a D color by EGL International would be the same as a GIA graded stone when, in fact, that very same diamond was graded a G color by the GIA. *This example was taken from a 10 stone survey conducted by Rapaport news published in a June 2013 Article Grading the Graders by Avi Krawitz. In that survey, there were differences in every category listed above except for Carat weight, with variances of several grades on some samples.

The lawsuits that brought this issue to the public’s attention are against Genesis Diamonds in Tennessee. One case in particular involves the accompanying appraisal (though I use the term “appraisal” very loosely). In that case, the Plaintiff paid $21,293.00 for a ring ($3500.00 for setting and $17793.00 for the diamond) with an EGL International Graded 2.06ct. G color VS2 clarity diamond that was appraised by the seller for $27,500.00 (setting and diamond). The diamond was later graded by GIA and came back with a J color and SI2 clarity. This suit was settled out of court and records of the settlement are undisclosed.

These kinds of discrepancies from grading labs must be taken into account when doing an appraisal on diamond jewelry. Personally, I do not currently appraise diamonds or gemstones, even though I deal in them on a daily basis and have the competency to do so. The reason I do not appraise these items is because I have not yet finished my GIA classes. Until I obtain those credentials, I believe it leaves too much room for my valuations to be contested, which would be a disservice to my clients. The ISA has many competent and experienced jewelry appraisers among its membership. These professionals have spent countless hours and dollars on education and equipment in order to accurately appraise jewelry items. I strongly urge non-jewelry professionals to consult them when encountering fine jewelry in an appraisal assignment.

Sources and further reading:

• Polygon Trading Network – Announcements and forum discussions
• Jewelers' Circular Keystone JCK:
• http://www.jckonline.com/2014/09/09/rapnet-bans-egl-reports-from-trading-network
• http://www.jckonline.com/2014/09/15/polygon-bans-egl-intl-reports-from-network
• http://www.jckonline.com/blogs/cutting-remarks/2014/09/09/carrying-lenient-diamond-grading-reports-actionable-talk-genesis-nemesis
• http://www.jckonline.com/2014/10/03/lawsuit-over-grading-reports-settled
• Rapaport News: http://www.diamonds.net/News/NewsItem.aspx?ArticleID=43417
• Rapaport Magazine: November 2014 Cover story, Honest Grading by Martin Rapaport.

Response from Paul Cassarino, ISA CAPP, and grader

The article is accurate. The additional information I would provide to appraisers reading this would be to not disregard the active market for EGL-graded diamonds. They are bought and sold every day.

If presented a diamond for appraisal that is accompanied by a diamond grading report from EGL, then the value research MUST be based on sales of EGL-graded diamonds. Because EGL labs are franchised, research MUST be done on diamonds graded by the very same franchise. Some franchises are regarded more positively than others. The diamond industry heavily discounts diamonds with EGL reports because of the widespread understanding of their often mis-use of the GIA grading standards. It is a serious mistake to value a diamond with EGL papers by research of GIA-graded diamonds. In the absence of adequate data for sales of diamonds graded by the same franchise, it is the appraiser's responsibility to grade the diamond according to their training and do their research based on those findings. (Just as they would if there were no documentation provided by the client.) They MUST disclose their findings within the report and explain their value methodology. Without being libelous, the appraiser can accurately reflect their methodology...their research of the EGL-graded diamond was based on the sales of (or price in the store of...) a similarly documented diamond i.e., diamonds graded by the same lab franchise.

Ontario Diamonds Compete on the World Market

We as appraisers have to be constantly aware of the changing world around us. This changing world is very apparent when I look at the poster over my desk showing the state of the diamond industry in 1987. The map does not show any diamond production in Canada. When the first Canadian diamonds came on the market they commanded a 10-15% premium over other diamonds of like quality not accompanied by a document attesting to Canadian origin. This too has changed.

The Canadian diamond industry is at the end of its first decade and continues its exponential growth. Today, Canada has four diamond mines and is third in the world in producing gem-quality rough diamonds. With approximately $2B of diamonds coming out of the ground, Canada has also worked to develop a strong secondary industry in both Ontario and the Northwest Territories that includes diamond polishing, jewellery design and manufacturing, opening a diamond bourse (a wholesale polished diamond exchange where trade merchants meet to transact business) and a strong retail community.

In the diamond industry the term beneficiation refers to local downstream activities that add value to locally-mined rough diamonds. It includes the process of sorting and valuing rough diamonds, their subsequent cutting and polishing, diamond trading, and the manufacture of diamond jewellery. It can also include the local marketing of diamonds. The question that has always been raised in the beneficiation process in Canada is the high-cost environment and the ability to remain competitive against diamond manufacturers that are polishing in India, Vietnam or China. Can a local industry develop? There have been a number of polishing facilities to open and close their doors in Canada ranging from small companies to some of the largest DTC Sightholders in the world. Success has proved elusive to all but one, the HRA Group of Companies.

In 2000, HRA opened a factory in Vancouver, British Columbia that began by polishing diamonds from the Ekati diamond mine. This was followed by HRA being named a Select Diamantaire by Rio Tinto Diamonds for the Diavik production and a Sightholder for the De Beers Snap Lake mine in 2007. In 2008, Crossworks Manufacturing Ltd., an HRA Group Company, was announced as the successful applicant to receive the 10% allocation of the De Beers Canada Victor Mine. The process was set in motion after the Government of Ontario and De Beers had reached an agreement to support the secondary industry by making rough diamonds available. The competition was open to all of De Beers’ global customers.

De Beers Canada began construction of Victor, Ontario’s first diamond mine, in 2005 approximately 515 km north of Timmins Ontario. The mine is a fly-in/fly-out open pit mine and currently employs 500 people. The rough diamond “run of mine” (average of all qualities) at Victor is on average three to four times the industry average, making the Victor Mine the highest quality rough producer in the world.
The agreement to provide access to 10% of Victor diamonds to Crossworks provided a springboard for the company to open a state-of-the-art diamond polishing facility in Sudbury, Ontario. The quality of the rough and sizes (2ct+) has allowed Crossworks to polish over $50M since the inception of the factory in September 2009.

The facility in Sudbury is currently staffed with 27 cutters from the HRA Vietnam facility and they are in the process of training a local labor force. The factory has doubled in size in less than one year and has some of the most advanced cutting equipment in North America. All of the rough is scanned with images and laser measurements into a computer to determine highest yield, not only in terms of diamond size but also quality and shape. The diamond is then tracked at every stage of cutting for quality control and weight loss. Crossworks also has a state-of-the-art laser diamond cutting machine that can cut a two carat piece of rough in half in 8-10 minutes, saving hours over the traditional sawing machines. The cutting of the primary diamond from the rough is done almost all by hand, but the facility uses robotic cutting machines to cut most of the tops (smaller top half of original cut diamond) thus reducing the labor cost on the smaller diamonds.

By use of cutting edge technology, not having to buy and cut rough under 2.00 carats and concentrating on GIA triple “very good” or triple “excellent” diamonds, Crossworks has been very competitive in the market. Crossworks is selling the diamonds at approximately the same price as equal quality goods on the market, only with the added benefit of “mine to finger” tracking and an Ontario Government certificate of origin.

James Poag, ISA CAPP, GG, NAJA CM, CJA-CAP
ISA Vice President
james@poags.com