“It’s 25-karat gold,” said the salesman, grinning and nodding, “and it’s worth lots more than I'm asking.” When I buy a piece of jewelry, I like to know exactly what I’m buying. I’m that annoying fellow who asks how they make white gold, and what the difference between karat with a “k” and carat with a “c” is. So when the salesman offered me 25-karat gold, I knew to beat a hasty retreat.

But it bugs me to know that some folks buy things based on a sales pitch that’s just baloney. There is no such thing as 25-karat gold. 24-karat gold is pure gold. 25-karat gold is pure guff.

The first step to really know what you’re buying is to ask for an appraisal. An appraisal describes the item, lists the purchase price, and details the particulars such as the number and types of gemstones present, if any, and the type of metal, be it sterling, 14-karat gold or something else.

An appraisal may not be too exciting to read, but it clearly tells the story of the make-up and condition of a piece of jewelry. Or at least it should . . .   Not too long ago I had someone tell me, “I’ll sell it to you for $500, but I’ll give you an appraisal for $1,000!”

Whoa! This is a bad deal. If you think about this offer, a number of things just don’t sit right. If the seller is willing to overstate the value on an appraisal, I bet he’s willing to overstate the value while selling it to me. Further, if you insure your jewelry, why pay the excess premiums for jewelry that is overstated in value?

An honest appraisal is a great tool. Most jewelers don’t automatically issue an appraisal for every purchase. But when you buy a substantial piece, such as an engagement ring, many jewelers will offer this service. Appraisal is a specialized service, however, and not every jeweler can provide formal appraisal services.

For older pieces, such as family heirlooms, look for jewelers who specialize in appraisal, under “Appraisers” right here on Find-A-Jeweler.com or in your local telephone listings. Rates for this service do vary, so be sure to inquire about the charges ahead of time.

No matter how many pieces of fine jewelry you own, and especially if you have a fair amount of jewelry, protect it with insurance. Appraisals are of great use when you insure your jewelry. Have each item expertly appraised and keep the appraisals in a safe place. I recommend storing both appraisals and original purchase receipts in a safe deposit box.

Once you have the appraisals, talk to your insurance agent about coverage. I carry an insurance rider for my jewelry on my homeowner’s policy. If you rent, ask your insurance agent about enhancing your renter’s insurance.

Rates will vary, but additional jewelry coverage usually will cost little, particularly when you think of having to replace items lost to theft, fire or any other disaster. Insurance will allow you to replace your collection.

Insurance and appraisals may not be thrilling reading but, when it comes to protecting your assets, they can be the heroes that save the day.