The Economics of Identify

I allow a DC 20 + magic item caster level Appraise check to discern the value of the magic item, but not what it does.

I also allow detect magic to identify magic items if the caster can make DC 30 + caster level rolls, which the loremaster does.

I proposed tossing the identify costs or even the spell to my players, but they chose not to. So I modified identify to use any gems and you can identify one item per 100 gp of gems with one casting of the spell.
 

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