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What’s it worth?
….a dose of reality
For
insurance purposes, fine jewelry is appraised at
retail
replacement value - the
cost for comparable replacement in the retail marketplace. Years
ago, this was a fairly easy computation since most jewelers
charged about the same amount for like merchandise. Today, we
see a radically different retail environment as traditional
jewelers compete for sales with internet and “wholesale”
dealers. This has created the potential for a large price
spread, based upon your source.
It
stands to reason that you cannot sell your personal jewelry for
as much as the lowest cost retailer. Why would someone pay you
the same as to an established business with return or trade-up
policies, services, etc? For one thing, your jewelry is used
and once off the showroom floor, it depreciates. And, since you
are not supporting a business - its employees, expenses and
inventory - you are not entitled to the mark-up necessary to
stay in business so…...
your jewelry is worth what someone
else is willing to pay for it.
It’s finding that
special “someone” that is the trick to realizing the most for
your jewelry.
This is
normally a function of time. Time is money and lack of time - in
other words, a quick sale - means less money in your pocket.
If you
must sell it fast, your options are limited. On the other hand,
the hassles involved in a re-sale may outweigh the relative
loss of cash. You must compare the alternatives and choose the
best course for you.
While
you have many avenues of selling your jewelry, we will break
things into two primary categories -
immediate
and
timed sales.
Immediate
Sales
will be to
someone with cash, ready to make an offer. They may be
re-selling your jewelry themselves, brokering it out to those
who do or scraping the metal and removing the stones.
In any
event, for the benefit of selling now, you take a bigger hit to
the wallet and that is the major
pitfall
for such a transaction.
You
are also limiting your options. Do you need to have cash today?
Some of the timed sales can be consummated within a week to two,
so decide accordingly.
Pawn Shops
have money and are ready to buy
or loan against your jewelry. Basically, your jewelry can become
collateral which you get back after paying off the pawn with
interest.
Tips
If you really don’t want to
part with your jewelry, but need cash, a pawn becomes a viable
option. Otherwise, get cash offers from multiple shops before
making a decision.
Jewelers
who buy (there aren’t
many) may offer a little more cash than a pawn shop or give you
even more toward something from their shop. They will also offer
to re-set stones from your unwanted jewelry into a new piece.
If getting new jewelry was your intent, these are viable
options.
Tips
If selling, have a
figure in mind. If trading in, make sure your potential purchase
isn’t inflated to cover the trade-in. Also, if a trade-in is
your choice, contact the original selling jeweler. They may have
a more liberal policy and certainly want your return business.
Scrap value
Cash
buyers will generally pay you scrap value on the mountings and
less than half of what they would normally pay their vendors for
larger diamonds. Smaller diamonds generally net $1 to $4 per
“point” (which is 1/100 of a carat) and colored stones generally
get little interest.
Watches may
only have scrap value or merit collector’s value - find out
before you sell.
Figuring the “scrap” value of gold
Since you
probably don’t have direct access to a gold refinery, you need
to find a buyer who does. A handful of jewelers (independents -
not chain stores) and most pawn brokers will buy gold. What
they pay will vary, so shop around.
The first
part of figuring scrap value is easy.
1.
Look up
today’s
spot value
in the
newspaper or internet. This will be quoted in $ per ounce.
2.
Determine the item’s weight . Pennyweights
(dwt)
and grams are both used in the trade.
Re-figure spot gold per dwt or per gram.
20 dwt
= 31 grams = 1 troy ounce
3.
Figure the
purity of the item. Fourteen-karat (14K) gold is .585 pure
gold. 18K = .750 or 75%
So, if you have 10dwt of 14K gold at $435 /ounce:
10dwt X . 585 X $21.75 = $127.23
4.
Now for the variable part. The buyer will pay only a
percentage this figure, because of the
refining
costs and overhead associated with gathering up enough gold
to sell to the refinery. They are also speculating on the future
gold value, which may be less than it is today.
Expect to be offered less than 50%.
Of course, many items are sold not to be scrapped but as
pre-owned or “estate” jewelry. If you do not need cash today,
investigate a timed-sale option. Some such transactions can be
consummated within a week.
Timed Sales
allow you
to explore your options better and should net more money than
would a quick sale. The length of time it takes depends on your
method, the marketability of the item and your willingness to
negotiate or accept an offer. But where to begin?
Acquaintances are often
a great option. People who see you wear the jewelry and comment
on it are potential customers. Friends, co-workers and those
you run into at regular intervals at the health club, church,
latte shop, or wherever are good candidates. Since you already
know them, they are comfortable talking with you. If not
interested, they will let you know. Pitfalls
Even friends (especially
friends) don’t want to feel they have been taken advantage of so
make sure your representations are accurate and the price is
fair - and this transaction won’t strain a relationship down the
road.
Tips
You are now a
salesperson. Wear the jewelry on your outings. If you won’t
wear it, why would someone else? An exception might be for
expensive or vintage items inappropriate for the environment or
posing a safety issue. In that case, take pictures or do a
personal showing. Be enthusiastic about the item to your
prospects and choose those best suited to the item based upon
your knowledge and observations of them.
Local Newspaper ads
have been tried and true for
decades to connect you to another consumer who is looking for a
good buy. It also keeps the transaction local.
Pitfalls
A lot of dealers are
also looking for a
steal
of a deal and will probably offer you much less than you are
expecting. You must also arrange a meeting place for the
transaction. Your bank or other secure location outside of your
home is advised.
Tips
Place the ad with the
paper (or papers) best suited to what you are selling. Do you
need the jewelry classification of a large Metro edition or
would a small community paper work better? The largest audience
isn’t always the best since many people are more comfortable
dealing with their “neighbors”. You may even have a
neighborhood newsletter with cheap ads (or free) for members.
Consignment Jewelers
put your item into the hands of a professional who has a vested
interest to sell it for the most money.
Pitfalls
You give up a portion of
the proceeds which may take months to realize. You are depending
upon the traffic to that particular store and client list.
Tips
Seek
out a jeweler who knows the type of jewelry you are selling.
Ask how they will market it and gather prospects. Do they have a
special “estate jewelry” case or another way to promote
pre-owned items?
Auction Houses
are the traditional way to show
off more important pieces to ready buyers through splashy
catalogs and live auctions. The larger houses have experienced
department heads who can give you a realistic figure to expect.
The auction platform also can work to your advantage as anxious
bidders take the price higher and higher.
Pitfalls
You pay a commission,
maybe some production fees and wait. Make sure your item
matches the audience.
Tips
E-mail a digital
photograph and give detailed information such as a reliable
appraisal or stone certifications before mailing it off. Consult
also with smaller or local auctioneers to decide who is best
suited to handle your transaction.
The Internet
is the sales medium of today,
with ‘e-bay’
transactions trumping all other means. Your item has a
global
audience with the opportunity to offer digital photos, a glowing
report and the best sales pitch you can muster.
Pitfalls
Your item is up against
a zillion others. Most of your audience is looking for a steal
of a deal and yours has to stand out for attention. Fraudulent
claims are also rampant on the internet, making buyers leery.
Tips
Make sure you have a
secured transaction and verification of your representations.
Internet
auctioneers are
cyberspace consignment jewelers. They typically handle the
transaction from start to finish, including photography,
posting, collection of proceeds and shipping. Hopefully they
will also secure a higher bid than you would on your own through
a targeted, week-long exposure.
Pitfalls
A fee will still be
extracted, and the internet bargain mentality still exists.
Tips
Look
at the corresponding fees for the services offered and
satisfaction ratings of the company.
Another option is to donate your jewelry
to a charitable cause and claim a
fair market tax write-off. While not cash,
it benefits both you and your donee.
-
Above all -
Know Your Jewelry
Regardless of the method of
sale you choose, know what you are about to sell. You do not
want to let something go too cheaply. Likewise you do not want
to misrepresent an item, based upon false assumptions.
Northwest Gemological Laboratory
NGL has been an
independent appraiser of fine jewelry for insurance, estates,
legal and yes, resale purposes since 1978. We provide the
highest standard of professionalism to jewelers and the public
without regard to vested interests and do not buy or sell
jewelry.
Our
affiliate school of gemology, Northwest Gemological Institute
teaches the fundamentals of diamond grading, gemstone
identification, valuation and related industry topics at our
Bellevue, Washington facility.
Courtesy of
NORTHWEST
GEMOLOGICAL
LABORATORY
10801 Main
Street #105
Bellevue, WA
98004
425.455.0985
Fax
425.454.3088
www.nwgem.com
©
Northwest
Gemological Laboratory 2005
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