> ## Documentation Index
> Fetch the complete documentation index at: https://docs.storehouses.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Valuation & Pricing

> Complete guide to asset valuations, pricing methods, and portfolio value tracking in Storehouses

## Overview

Accurate valuations are essential for insurance, investment tracking, and estate planning. Storehouses uses both automatic pricing for precious metals and manual valuation for other assets to provide real-time portfolio value tracking.

## How Valuations Work

Storehouses supports two valuation methods depending on asset type:

<CardGroup cols={2}>
  <Card title="Automatic Pricing" icon="robot">
    **Precious metals** get real-time spot price updates

    Requires: weight, purity, metal type
  </Card>

  <Card title="Manual Valuation" icon="hand">
    **All other assets** use your entered market value

    Requires: periodic manual updates
  </Card>
</CardGroup>

## Automatic Precious Metals Pricing

### How It Works

For precious metals, Storehouses automatically calculates current value based on:

1. **Spot Price** - Real-time market price per troy ounce
2. **Weight** - Amount of metal in the item
3. **Purity** - Fineness (e.g., .9999 for 24k gold)
4. **Quantity** - Number of identical items

**Formula**:

```
Current Value = Spot Price × Weight × Purity × Quantity
```

### Supported Metals

<ParamField path="Gold" type="automatic">
  Real-time spot pricing in USD per troy ounce
</ParamField>

<ParamField path="Silver" type="automatic">
  Real-time spot pricing in USD per troy ounce
</ParamField>

<ParamField path="Platinum" type="automatic">
  Real-time spot pricing in USD per troy ounce
</ParamField>

<ParamField path="Palladium" type="automatic">
  Real-time spot pricing in USD per troy ounce
</ParamField>

<ParamField path="Rhodium" type="automatic">
  Real-time spot pricing in USD per troy ounce
</ParamField>

### Price Update Frequency

* **During market hours**: Every 15 minutes
* **Market closed**: Last available price held until markets reopen
* **Weekends/holidays**: Price frozen until next trading day

<Tip>
  Precious metals values update automatically throughout the day. You don't need to manually refresh or update these items.
</Tip>

### Setting Up Automatic Pricing

When adding a precious metal item:

<Steps>
  <Step title="Select Metal Type">
    Choose gold, silver, platinum, palladium, or rhodium
  </Step>

  <Step title="Enter Weight">
    Specify weight and unit (troy oz, grams, kilograms)
  </Step>

  <Step title="Enter Purity">
    Input fineness (e.g., .999, .9999) or karat for gold
  </Step>

  <Step title="Add Quantity">
    Enter number of identical items (default: 1)
  </Step>

  <Step title="Save Item">
    Value automatically calculates and updates going forward
  </Step>
</Steps>

### Premium Over Spot

<Warning>
  Automatic pricing uses spot prices only. It doesn't account for numismatic premiums, collectible value, or dealer markups.
</Warning>

For rare or collectible precious metal items (e.g., rare coins, limited mintages):

1. Use automatic pricing for **melt value** baseline
2. Add a separate manual item or note for **numismatic premium**
3. Or enter a manual **Market Value** override to include premium

**Example**:

* 1 oz Gold American Eagle
* Automatic value: \$2,050 (spot price × 1 oz)
* Actual market value: $2,150 (includes $100 premium)
* Solution: Add \$100 to manual market value field

## Manual Market Valuation

### Asset Types Using Manual Valuation

All non-precious-metal assets require manual market value entry:

* Luxury watches
* Gems and jewelry
* Wine and spirits
* Fine art
* Arms and armor
* Other collectibles

### Entering Market Value

<ParamField path="market_value" type="currency">
  Current estimated market value

  **Definition**: Amount you could reasonably sell the item for today

  **Sources**:

  * Recent auction results
  * Dealer quotes
  * Online marketplace prices
  * Professional appraisals
</ParamField>

### When to Update Market Values

<AccordionGroup>
  <Accordion title="After Professional Appraisal">
    Update immediately after getting items professionally appraised. Add appraisal date to item notes.
  </Accordion>

  <Accordion title="Quarterly Reviews">
    For actively traded assets (watches, art), review values quarterly based on current market conditions.
  </Accordion>

  <Accordion title="Annual Updates">
    At minimum, review and update all values annually, especially for insurance documentation.
  </Accordion>

  <Accordion title="Market Events">
    Update after significant market events affecting your asset class (e.g., artist retrospective, brand announcement).
  </Accordion>

  <Accordion title="Condition Changes">
    Immediately update if item condition changes due to damage, restoration, or wear.
  </Accordion>
</AccordionGroup>

### Finding Current Market Values

**For Watches**:

* Chrono24, Bob's Watches, WatchBox
* Recent auction results (Christie's, Sotheby's)
* Authorized dealer quotes

**For Wine & Spirits**:

* Wine-Searcher
* Liv-ex (for fine wines)
* Auction house results
* Specialist retailers

**For Fine Art**:

* Artnet, Artsy, Invaluable
* Gallery quotes
* Recent auction comps
* Professional appraisal

**For Gemstones**:

* GIA price reports
* Rapaport Diamond Report
* Local jeweler appraisals
* Auction comparables

<Tip>
  Document your valuation source in the item's description field. This helps with future updates and insurance claims.
</Tip>

## Insurance Value vs Market Value

Storehouses tracks both values because they serve different purposes:

### Market Value

<ParamField path="market_value" type="currency">
  **What it is**: Current fair market selling price

  **Use for**:

  * Portfolio performance tracking
  * Investment decision making
  * Estate valuation
  * Tax reporting (cost basis comparison)

  **Typically**: Lower or equal to insurance value
</ParamField>

### Insurance Value

<ParamField path="insurance_value" type="currency">
  **What it is**: Replacement cost for insurance coverage

  **Use for**:

  * Insurance policy declarations
  * Coverage verification
  * Claims documentation

  **Typically**: Higher to cover replacement costs and premiums
</ParamField>

### How They Differ

**Example: Vintage Rolex Submariner**

* **Market Value**: \$15,000 (what it sells for on Chrono24)
* **Insurance Value**: \$18,000 (replacement cost including dealer premium, taxes, authentication)

**Why**: Insurance value covers all costs to replace the item, not just raw market price.

<Card title="Best Practice" icon="lightbulb">
  Set insurance value 10-20% higher than market value to account for replacement costs, dealer premiums, and market volatility.
</Card>

## Valuation History Tracking

### Automatic History Records

Storehouses automatically tracks:

* Every value change (manual or automatic)
* Date and time of change
* Previous and new values
* Percentage change from purchase price

### Viewing Valuation History

<Steps>
  <Step title="Open Item Details">
    Click on any item from your dashboard
  </Step>

  <Step title="Scroll to Value Chart">
    See the valuation history chart showing value over time
  </Step>

  <Step title="Review Timeline">
    View chronological list of all value changes
  </Step>
</Steps>

### What the History Shows

<CardGroup cols={2}>
  <Card title="Value Trends" icon="chart-line">
    Visual chart showing value changes over the ownership period
  </Card>

  <Card title="Gain/Loss" icon="percent">
    Total and percentage change from purchase price
  </Card>

  <Card title="Peak Value" icon="mountain">
    Highest value reached and when
  </Card>

  <Card title="Update Dates" icon="calendar">
    When each valuation was recorded
  </Card>
</CardGroup>

## Portfolio Total Calculation

Your portfolio total value sums:

1. **Precious metals** - Current spot-based values
2. **Other assets** - Latest manual market values
3. **Quantities** - Multiples counted correctly

**Formula**:

```
Portfolio Total = Σ(Item Value × Quantity)
```

### Real-Time Updates

Portfolio total updates:

* **Automatically** as precious metal spot prices change
* **Immediately** when you update manual market values
* **Instantly** when you add or remove items

### Viewing Portfolio Value

See your total portfolio value on:

* **Dashboard** - Large display at top
* **Wealth Garden** - Interactive growth visualization
* **Reports** - Detailed breakdowns by category, location, collection

Learn more in the [Dashboard guide](/features/dashboard).

## Price Change Notifications

### Setting Up Alerts

Get notified when precious metals reach target prices:

<Steps>
  <Step title="Navigate to Alerts">
    Go to the [Alerts page](https://storehouses.app/alerts)
  </Step>

  <Step title="Create Price Alert">
    Click **New Alert** and select precious metal type
  </Step>

  <Step title="Set Target Price">
    Enter the spot price that triggers the alert
  </Step>

  <Step title="Choose Notification Method">
    Select email, in-app notification, or both
  </Step>
</Steps>

### Alert Types

<ParamField path="price_above" type="alert">
  Notify when spot price rises above target

  **Use**: Know when to consider selling
</ParamField>

<ParamField path="price_below" type="alert">
  Notify when spot price falls below target

  **Use**: Know when to consider buying
</ParamField>

<ParamField path="percentage_change" type="alert">
  Notify on X% change in 24 hours

  **Use**: Track significant market movements
</ParamField>

Learn more in the [Alerts guide](/features/alerts).

## Portfolio Performance Metrics

### Gain/Loss Calculation

For each item:

```
Total Gain/Loss = Current Value - Purchase Price
Percentage Gain/Loss = ((Current Value - Purchase Price) / Purchase Price) × 100
```

### Portfolio-Wide Metrics

<CardGroup cols={2}>
  <Card title="Total Value" icon="dollar-sign">
    Sum of all item current values
  </Card>

  <Card title="Total Cost Basis" icon="receipt">
    Sum of all purchase prices
  </Card>

  <Card title="Unrealized Gain/Loss" icon="chart-line">
    Difference between current value and cost basis
  </Card>

  <Card title="Return Percentage" icon="percent">
    Portfolio-wide return on investment
  </Card>
</CardGroup>

### Best/Worst Performers

Dashboard highlights:

* **Top gainers** - Items with highest percentage appreciation
* **Top losers** - Items with negative performance
* **Highest value** - Most valuable individual items
* **Category performance** - Returns by asset type

## Tax Reporting Considerations

<Warning>
  Storehouses provides portfolio tracking tools, not tax advice. Consult a tax professional for guidance on reporting collectibles and precious metals.
</Warning>

### Cost Basis Tracking

Storehouses records:

* Purchase price (your cost basis)
* Purchase date (for holding period)
* Seller information
* Quantity acquired

**Export this data** for tax reporting when you sell items.

### Capital Gains

When you sell an item:

* **Short-term gains**: Items held ≤ 1 year
* **Long-term gains**: Items held > 1 year
* **Collectibles rate**: Often 28% max (vs 15-20% for stocks)

### What to Track

For tax purposes, maintain records of:

* Original purchase receipts
* Professional appraisals
* Sale proceeds
* Transaction costs (fees, shipping)
* Improvements or restoration costs

Export detailed item history for complete records.

## Best Practices for Accurate Valuation

<AccordionGroup>
  <Accordion title="Use Conservative Estimates">
    When uncertain, estimate on the conservative side for market value. It's better to be pleasantly surprised than disappointed.
  </Accordion>

  <Accordion title="Document Valuation Sources">
    Always note where values come from in the item description. Include dates, links, or appraiser names.
  </Accordion>

  <Accordion title="Regular Review Schedule">
    Set calendar reminders to review and update valuations quarterly or annually depending on asset type.
  </Accordion>

  <Accordion title="Professional Appraisals for High-Value Items">
    Get professional appraisals for items worth \$10,000+, especially for insurance purposes.
  </Accordion>

  <Accordion title="Track Market Conditions">
    Follow your asset classes to understand when values are rising or falling. Update more frequently in volatile markets.
  </Accordion>

  <Accordion title="Separate Sentimental from Market Value">
    Track actual market value, not what the item is worth to you personally. Use notes to record sentimental significance.
  </Accordion>

  <Accordion title="Account for Condition">
    Be honest about condition when valuing. Excellent condition items command premiums; damaged items sell at discounts.
  </Accordion>

  <Accordion title="Compare Multiple Sources">
    Check several comparable sales or price sources before settling on a valuation. Average if there's variation.
  </Accordion>
</AccordionGroup>

## Common Valuation Scenarios

<AccordionGroup>
  <Accordion title="Inherited Items">
    For inherited items:

    * Use date-of-death valuation for tax basis
    * Get professional appraisal for high-value pieces
    * Research comparable sales from that time period
    * Document the estate valuation in item notes
  </Accordion>

  <Accordion title="Gifts Received">
    For gifted items:

    * Cost basis typically carries over from giver
    * Ask giver for original purchase information
    * If unknown, estimate fair market value when received
    * Document the gift date and giver
  </Accordion>

  <Accordion title="Damaged Items">
    After damage:

    * Get professional assessment if valuable
    * Reduce market value proportionally
    * Keep insurance value at original (for claims)
    * Document damage with photos and notes
  </Accordion>

  <Accordion title="Restored Items">
    After restoration:

    * Add restoration cost to cost basis
    * Update market value based on new condition
    * Document restoration work and provider
    * Keep receipts for tax purposes
  </Accordion>
</AccordionGroup>

## Valuation on Mobile

Update values on the go:

* Quick value update from item detail page
* Photo-based valuation support (reference comps)
* Offline updates sync when reconnected
* Push notifications for price alerts

## Related Resources

<CardGroup cols={2}>
  <Card title="Editing Items" icon="pen" href="/portfolio/editing-items">
    Learn how to update item valuations
  </Card>

  <Card title="Dashboard" icon="chart-pie" href="/features/dashboard">
    View portfolio totals and performance
  </Card>

  <Card title="Wealth Garden" icon="seedling" href="/portfolio/wealth-garden">
    Visualize portfolio growth over time
  </Card>

  <Card title="Export & Reporting" icon="download" href="/portfolio/export-reporting">
    Generate valuation reports
  </Card>
</CardGroup>