The Tolucan Times » Cos Altobelli

Foreign Purchases: Should I Buy?

Cos Altobelli — Wed, 11 Aug 2010 19:29:15 +0000

Buying gems and jewelry in your own backyard is difficult enough without knowing a reputable jeweler. Going abroad and buying compounds your problem three-fold.

To begin with, what if after returning home you find out what you purchased is not worth anywhere near what you paid for it? Can you return it for credit or exchange? In most cases, that’s not possible or practical. The customs problem enters into the picture. Is there going to be duty on it going each way?

What if the gem has been treated or enhanced in some manner to improve its appearance and they haven’t disclosed that it is not natural? You still have the same problem about returning it. They may give you a certificate authenticating origin, being natural and untreated, etc., but will they honor the certificate? Good luck! Is there a Better Business Bureau or Consumers Affairs Agency there? I doubt it. One possible safeguard is paying with a check or credit card, provided you get home in time to challenge it.

Unless a very reliable source has recommended someone beyond reproach, I would advise your purchases to be monetarily insignificant. An inexpensive curio, perhaps, to give you fond memories of the trip is what I would advise.

Bon Voyage!

Cos Altobelli, is a third generation jeweler and president of Altobelli Jewelers in Burbank, previously located in North Hollywood for 60 years. His specialty is appraising for all functions and acting as an expert witness.

He holds a graduate degree from the Gemological Institute of America and the title of Certified Gemologist Appraiser, from the American Gem Society, is the author of three appraisal books, and has appeared on “Prime Time Live” several times.

Mr. Altobelli can be reached at (818) 763-5151.

Gold, the Quintessential Anti-cyclical Asset

Cos Altobelli — Wed, 30 Dec 2009 20:12:24 +0000

In comparison to other commodities, there is no significant correlation between returns on gold and changes in macroeconomic variables such as gross domestic product, inflation and interest rates. Therefore, gold returns are less correlated with the returns on equity and bond indices than other commodities. As a result, gold as an investment asset fulfills two related fundamental functions, a safe haven in times of financial volatility and a risk minimization tool.
A historical analysis of gold prices compared to the world’s equity market reveals a clear inverse relationship between returns on equity markets and the gold price. Generally, as the equity market falls, gold prices rise. There is also a solid correlation between geopolitical and financial market instability and rising gold prices, as demonstrated in the lead-up to the Iraq war.
The current market is strong and there are some indicators that predict even a higher market. But like the stock and bond markets, there will be an adjustment. I wish I was a clairvoyant and had “coraggio” to jump in and out at the appropriate time!

Cos Altobelli is a third generation jeweler and president of Altobelli Jewelers in Burbank, previously located in North Hollywood for 60 years. His specialty is appraising for all functions and acting as an expert witness. He holds a graduate degree from the Gemological Institute of America and the title of Certified Gemologist Appraiser from the American Gem Society, is the author of three appraisal books and has appeared on “Prime Time Live” several times. Mr. Altobelli can be reached at (818) 763-5151.

Gemstone Quality

Cos Altobelli — Thu, 26 Nov 2009 00:01:43 +0000

A gemstone’s quality has three basic factors: beauty, durability and rarity. Beauty is first, color being 50% of its value, clarity 30% and cut 20%. Not often considered, good proportions, symmetry and polish can result in a stone’s beauty being enhanced with brilliance and dispersion. A large percentage of colored gemstones are cut in India, notorious for retaining weight by leaving thick bottoms, consequently a dull-looking stone. Those that are of fine quality are generally re-cut after exportation.
Durability is second. Not that a stone needs be indestructible but that it will withstand ordinary wear.
Rarity, although third, frequently determines price. Demand is based on rarity and fashion. Amber was once very fashionable—second most important import to USA. It lay dormant for decades until “Jurassic Park!”
Tradition also affects a stone’s value—making it precious. It is taught to us through historic example. The book of exodus tells us that around 5000 BC, the Lord told the Israelites to make a breast plate for Aaron the High Priest. Twelve stones with the names of the twelve tribes were inscribed on it so that Aaron would bear their names before the Lord as a memorial. The original birthstone list is taken from this example. It was changed in 1937 with stones of greater popularity. In recent times, a couple of alternates have been added, Moonstone to join Pearl, Alexandrite in June and Tanzanite with Turquoise and Zircon in December.

Diamond Buying

Cos Altobelli — Wed, 04 Nov 2009 22:43:02 +0000

Buying diamonds is probably one of the blindest purchases a person can make because a consumer cannot really discern what he or she is getting just by looking at it. That’s why the credentials, expertise and integrity of your jeweler are so important.
Most retail establishments commonly in the business of buying and selling diamonds will give you the weight, color and clarity of a diamond but do not offer any information concerning the symmetry and polish. This last element is critically important since a diamond will appear “lifeless” and have little brilliance and dispersion without proper proportions and finish. A diamond’s importance should be placed more on its ability to show “fire” than most of its colorless counterparts. It actually has as much influence on the price and value of a diamond as do the color and clarity. Another element is fluorescence. If a diamond possesses medium to strong fluorescence, it can affect the beauty by rendering a somewhat cloudy appearance. Even without this observation, most diamond merchants will discount a diamond possessing this quality as much as 20%.
In purchasing a diamond from anyone, it would be wise to ask for a document which explains what the grades are, including color, clarity, cut and weight. It should also have a statement which allows for a FULL refund in the event a recognized appraiser or laboratory determines that the diamond is not what it is purported to be. Many retail establishments will “exchange” a diamond if there is a controversy but will not make a refund. This creates a problem in that you may never get a diamond that is what it’s supposed to be!

Auction- Beware!

Cos Altobelli — Wed, 09 Sep 2009 19:08:57 +0000

Auctions can be exciting and rewarding. However, there are a few basic rules that need to be adhered to or the experience can turn out to be very disappointing and costly.
To begin with, unless you have a reputable contact at the auction house that is knowledgeable and can give you the critical information that makes it a winner or a loser, it would be imperative to physically see the item. Looking at a photo in the auction catalog does not divulge if there is damage that has been expertly concealed, or a marriage of two or more pieces, i.e., tassels or chains that have been added that were never a part of the original piece, etc. And, more importantly, is it authentic or a clever reproduction? Is there authentication with documentation, expert opinion, or is it a guess?
Pre-sale estimates of what the item can be expected to bring can be very high or very low. This can be the result of an inexperienced appraiser employed by the auction house, or they have used an appraisal from an independent. This scenario has occurred with items in estates of some notable celebrities in which the pieces sold for prices unbelievably lower than anticipated. So, rather than chancing a phone bid, it would be extremely important for you to be there in person.
Notable diamonds should have gemological reports from either the Gemological Institute of America or the American Gem Society. Other laboratories have been known to be somewhat liberal in their grading, and not reliable. Gemstones and gem materials may have been enhanced to improve their appearance by different treatments. There should be authentication as to whether they are natural and untreated.

Cos Altobelli is a third generation jeweler and president of Altobelli Jewelers in Burbank, previously located in North Hollywood for 60 years. His specialty is appraising for all functions, and acting as an expert witness. He holds a graduate degree from the Gemological Institute of America and the title of Certified Gemologist Appraiser from the American Gem Society, is the author of three appraisal books, and has appeared on “Prime Time Live” several times. Mr. Altobelli can be reached at (818) 763-5151.

History Lessons on Lankershim, South of Riverside

Cos Altobelli — Wed, 08 Jul 2009 20:35:36 +0000

Local businesses/organizations walk their talk!

What is Old Lankershim Village? It is one of the most historic communities in Los Angeles that was, until recently, lost to history. In 2005, believing there was great potential for growth and improvement for an ignored commercial corridor, the Toluca Lake Chamber of Commerce brought together local businesses and the residential community to collectively envision a re-development plan for the region. The community group decided they wanted to “rediscover” the rich history of their community as the foundation for growth in the future.
Cos Altobelli, long-time business and property owner on Lankershim Blvd., got involved because “Riverside Drive south to the Campo De Cahuenga had no representation. NoHo had redevelopment funds, and Toluca Lake had the village but this corridor along Lankershim, which has significant property owners, was fading, and had no collective identity.”
Richard Bogy, then Toluca Lake Chamber of Commerce President and local historian, explains that in the late 19th Century, the Lankershim and Van Nuys family owned much of the east San Fernando Valley (previously owned by Andres Pico, signer of the Treaty of Cahuenga). By 1880, wheat was being farmed in the area, and Isaac Lankershim commanded the largest wheat-growing empire in the world—right down this corridor. In fact, the very first wheat ever exported to Europe from the United States came from the Lankershim ranch. In 1882, James Lankershim subdivided 12,000 acres of his ranch, and brought the railroad to his newly named town of Lankershim. That same year, General Charles Forman applied for the first regional post office in what he named “Toluca” (now Toluca Lake). Thanks to the convergence of the Los Angeles, Tujunga and Pacoima Rivers at what is now Weddington Park, the area had rich alluvia soils, and a shallow water table. By 1890, the Bakman, Weddington and other founding families had transformed the region into one of the greatest fruit farming areas of the world. The Bakman family developed the modern cling peach here. Also grown were plums, walnuts and giant “Moorpark” apricots (yes, that’s where the street name comes from). Lankershim boasted the “world’s largest apricot tree.”

Where Lankershim merges with Cahuenga.

By 1923, commercial growth had moved towards present day North Hollywood, and a new affluent “bedroom” community was being developed around the shores of Toluca Lake by the Toluca Lake Company. Hoping to encourage studios to relocate in the area, the northern part of Lankershim was renamed “North Hollywood,” and the southern part was enjoined to Toluca Lake.
Kelly Altobelli, Committee Chair, said that local businesses along Lankershim with a loyal customer base and reputation of service such as Mayberry Lincoln Mercury, Altobelli Jewelers, Dr. Cleaners, Robert Evans Photo Studio, Bungalow 3, Graffiti Palace Tattoo, Robert Bachelor Salon, as well as the TL Chamber, GTLNC, Campo de Cahuenga (a national historic site) along with Councilman Tom LaBonge, contributed funds to build a community monument at the southern community gateway, along with a custom bench monument at the northern gateway.
As the community, residents, businesses and property owners have collectively worked to define and rediscover this great historic community, all share a commitment to working with city leaders, planners, developers and property owners in not only envisioning a great community of the future but making the promise of success a reality.
Please join us on November 9th at 11:45am at the intersections of Lankershim and Cahuenga as we dedicate the Old Lankershim Village gateway.

Uninsured Loss?

Cos Altobelli — Wed, 20 May 2009 19:55:06 +0000

Under certain circumstances, the Internal Revenue Service will allow an income tax deduction for lost or damaged items not covered by insurance. (This can be a business or a personal loss.) The allowable deduction for a casualty loss is the least of: (1) the fair market value at the time of loss or the decrease in FMV at the time of loss, or (2) the original cost or cost basis. The original cost, in most instances, is difficult to determine, particularly if there are no records or the item was inherited or a given as a gift. In most situations, the IRS will accept the former.
The loss must exceed 10% of the claimant’s adjusted gross income (i.e. the loss must exceed $10,000 if the income is $100,000). Therefore, if the loss is $15,000, only a $5,000 value would be deductible. If it is a personal loss opposed to a business loss, there is a $100 deductible. The FMV is determined on the date of loss. The casualty loss report should be performed by a credentialed appraiser, accustomed to providing appraisals for the IRS.
Cos Altobelli, is a third generation jeweler and president of Altobelli Jewelers in Burbank, previously located in North Hollywood for 60 years. His specialty is appraising for all functions and acting as an expert witness. He holds a graduate degree from the Gemological Institute of America and the title of Certified Gemologist Appraiser, from the American Gem Society, is the author of three appraisal books, and has appeared on “Prime Time Live” several times. Mr. Altobelli can be reached at (818) 763-5151.

Why Do I Need an Appraisal?

Cos Altobelli — Wed, 29 Apr 2009 18:43:16 +0000

1. Insurance: Provides information which will assure a replacement of equal utility, quality and value.
2. Estate: For tax liability purposes, when the fair market value of the jewelry exceeds $5,000.00.
3. Comparison: Used to verify the identity and quality claimed by a third party, or to verify the value.
4. Divorce Settlement: An appraisal for division of property in which fair market value is used.
5. Estimate to Replace (Hypothetical): To determine values of items that were lost or stolen.
6. Damage: Indicates the weight loss resulting from re-cutting a damaged stone and its loss of value.
7. Collateral: Performed for a party wishing to use the jewelry or gemstones for obtaining a loan, etc.
8. Donation and Gift: For tax deduction purposes based on IRS regulations.
9. Barter: Two or more parties exchanging one commodity for another.
10. Customs: For proof that an item was not purchased in a foreign country upon return.
11. Casualty Loss: For an income tax deduction for lost and damaged items NOT covered by insurance.
12. Conservatorship: To determine the value of the estate when an individual becomes incapacitated.
13. Distribution of Property: Used with a will; Precludes heirs from squabbling over the estate.
14. Proof of Ownership: Provides positive identification when items have been recovered.
15. Investment: Provides a prospective appreciation analysis.

Any of these should be performed by a certified appraisal professional, not just a gemologist. Someone who knows federal and state laws and their requirements.

Cos Altobelli is a third generation jeweler and president of Altobelli Jewelers in Burbank, previously located in North Hollywood for sixty years. His specialty is appraising for all functions and acting as an expert witness. He holds a graduate degree from the Gemological Institute of America and the title of Certified Gemologist Appraiser, from the American Gem Society, is the author of three appraisal books, and has appeared on “Prime Time Live” several times. Mr. Altobelli can be reached at (818) 763-5151

Gemstone Carvings

Cos Altobelli — Wed, 18 Feb 2009 15:57:07 +0000

There is so much more in determining value of a carving than just the material itself. To begin with, there is the artistry that may have been employed in the use of the material, perhaps swirls of color integrated into the design and its overall attractiveness. There is added value if more than one material has been used, maybe the eyes in an animal or beak of a bird or something like watermelon tourmaline in an eagle in which the red has been used as the head, the white as the collar and the green as the body. A very important element would be the amount of detail and quality of the polish in the piece. Although not as important, the base may be the matrix of the gem material and consideration to its beauty and the size ratio of it to the carving itself. Age may not be of significance, particularly in ivory unless there is provenance, i.e., documented authentication of it being of the Ming Dynasty.
Most of the finest gem carvings in the world have been created in Idar-Oberstein, Germany. In recent times, the Brazilians have improved their quality to compete with the Germans and are far less expensive. Hong Kong is a strong contributor to the carving arena as well. The Italians in Naples have a renowned stature in the carving of coral and cameos. The more important cameos are those made from hard gemstones, which are considerably more valuable.

Cos Altobelli, is a third generation jeweler and president of Altobelli Jewelers in Burbank, previously located in North Hollywood, for 60 years. His specialty is appraising for all functions and acting as an expert witness. He holds a graduate degree from the Gemological Institute of America and the title of Certified Gemologist Appraiser, from the American Gem Society, is the author of three appraisal books, and has appeared on “Prime Time Live” several times. Mr. Altobelli can be reached at (818) 763-5151.