FLORIDA COUPLE'S 10CT. PINK DIAMOND APPRECIATES UP TO 500% IN UNDER A DECADE

Christie's will auction for $8 million to $12 million a pink diamond ring that has appreciated up to 500 percent in less than a decade since being bought by a South Florida man for his wife.The 10.07-carat, cushion modified brilliant-cut, fancy intense purple-pink gem flanked on either side by a triangular-shaped diamond will be on offer at the auctioneer's Magnificent Jewels sale in New York in April.

The appreciation from the $2 million purchase price in 2007 comes amid an increase in the value of pink diamonds as supply is forecast to run out and demand has spiked, according to the stone's appraiser.

"There is only one colored diamond for every 10,000 colorless diamonds," said Andrew Kravit, founder and president of Kravit Estate Appraisals, in a statement March 24.

"Most of the world's pink diamonds come from the Argyle mine in Western Australia, whose supply is expected to run out by 2020. High demand from wealthy individuals and savvy investors around the world is driving the steep increase in values."

Kravit was asked to appraise the couple's jewelry collection for insurance purposes last fall and discovered the diamond ring was undervalued.

"When I looked through a list of their personal assets on their insurance policy, I saw some pieces that were overvalued, others that were undervalued and a few that were right on the money," Kravit said in the statement. "But there was one glaring mistake: their 10-carat pink diamond had been appraised for only $4.7 million."

Kravit called an associate specializing in colored diamonds, who confirmed the piece would fetch more than $8 million in the current market.

"Pink diamonds in strongly saturated colors of over a carat are a rarity," added Rahul Kadakia, international head of jewelry at Christie's. "To locate an intense pink gem of over 10 carats is a real event in the world of jewelry auctions."

The Magnificent Jewels auction on April 20 will also feature the 15.99-carat 'Jubilee Ruby' estimated at $12 million to $15 million.

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WHAT SHOULD LUXURY HOME SELLERS DO WITH THEIR PERSONAL ASSETS?

Affluent South Florida owners often face a dilemma when listing their home or condominium for sale: What should they do with their fine art, period furniture, woven tapestries, or other expensive personal assets One option is to carefully pack everything and transport it to a new residence. However, this entails an additional moving expense and the risk of damage. More importantly, the new home may not have the right square footage, floor plan or interior design to accommodate the current artwork, furnishings or antiques especially when the owner is moving to a smaller residence. In other cases, the owner may decide to include some or all of these assets in the purchase price of the house. That can be a win-win situation for both buyer and seller, when both parties have similar tastes. Artwork, furnishings or antiques can also be used as a sweetener when making an offer or counter-offer during negotiations.

Another option is selling the assets, in whole or in part, to a third-party prior to closing the sale of the home. Our team at Kravit Estate Appraisals LLC has advised many owners with collections that appeal to affluent individuals. For example, a group of paintings by a noteworthy artist or several pieces of fine jewelry could be sold at auction to the highest bidder. For other owners, the best choice might be to donating their personal assets to a charity and gain a significant tax deduction.

This choice can be very beneficial for entrepreneurs, executives and professionals who are still earning a six- or seven-figure income. Donations can also be incorporated into an estate plan. But before the owners sell or donate their expensive personal assets, it's important to obtain an up-to-date appraisal of their values.

That's because each necklace, painting, sculpture, wall hanging or antique is unique, unlike stocks or bonds with easily determined market values. Documentation of purchase prices, conditions, appraised values and market demand is essential whether the owner plans to sell these belongings, donate them to a charity or use them as a bargaining chip in negotiating the sale price of the home. Our team works closely with South Florida real estate professionals serving the luxury residential market.

In many cases, we can make a preliminary evaluation of the personal assets and discuss the owner?s options prior to listing the home for sale. This is particularly important if the owner wants to include the artwork or furnishings in the sale. Kravit Estate Appraisals LLC can also assist with selling or donating the personal assets before (or after) the closing. By helping owners maximize the value of their possessions, we can improve their financial situation, giving them additional resources as they begin the next stage of their lives.

MEET THE ENTREPRENEURS - KRAVIT PUTS HIS OWN TAKE ON THE FAMILY BUSINESS.

Andrew Kravit's family has been in the art and jewelry business for five generations, but he decided to go it alone instead of staying with his parent's company.

Founded in August 2012, Boca Raton based Kravit Estate Appraisals generated over $4 million in revenue in 2015, he said, it has two lines: it helps estates appraise the value of their luxury goods, and it assists the estates in selling those goods.

Its goal is to ensure clients obtain top dollar for their assets.

"We deal with life changing events: death, divorce and bankruptcy, Kravit said.

To have someone- not only as a professional but also an adviser and friend- to walk through the process is invaluable.

Kravit's great- great grandfather name to the U.S. from Russia in 1904 and engraved watches.

He realized he could collect the leftover gold shavings and refine them.

That started a family business of selling precious metals and jewelry. Kravit's parents own a company that buys jewelry, art and other valuable assets from estates and resells them.

A New York University graduate, Kravit did post grad work at Sotheby's auction house, and was an apprentice diamond cutter. He worked for his parents for years, before deciding to start his own business.

Kravit Estate Appraisals works with attorneys to value client assets, often when they must be sold because of estate taxes, inheritance, divorce or bankruptcy. It contracts with 20 appraisers in 30 asset classes, from art to wine to cars to horses. The company charges an hourly rate for appraisals and a commission for sales, but the appraisal charge is waived after items are sold, Kravit said.

One of the most unusual items it appraised was a sabre -toothed tiger skull that a plastic surgeon had for 40 years. It was worth $250,000, Kravit said.

The company also helps clients ship, insure and display valuables. It recently developed a mobile application so clients can rifle through photos and information about their most prized possessions.

The reasons people collect are: one, to show off; two, so no one else has it; and three, to teach their kids about the heritage of certain items and why they collect them, Kravit Said. Written by Brian Bandell, South Florida Business Journal.

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