From our experience in the field, you can differentiate two type of people who sell gold and diamond jewelry – the ones that sell jewelry that they bought themselves for some reason and those who sell inheritance that they received. The first type usually has more anguish from the stature and we are going to focus on this type of people in this article.
Important to know!
- In most cases gold and diamonds will be bought from you by the retail price for their raw materials alone.
- Therefore, there may be a great difference between the price you payed and the price you are offered. More on this topic later-on in this article.
- You can maximize the price you are getting by selling the right product to the right place. Sell a Moroccan bracelet to a specialized store, diamonds to jewelers, etc.
- It is possible to try and sell to private customers and the benefit will be higher there – this requires time, documents and patience.
The greatest distress for private people trying to sell gold and diamonds on their own, is that they are amazed by the gap between the buying price and the selling price offered to them.
The huge gap is due to the fact that in most cases the price for the raw material of a jewelry played only a small part for the final price tag in which it is sold. This gap is continuing to grow the more branded and expensive the place the jewelry was bought from. Take into example a ring with a central diamond and smaller diamonds.
At the day you bought the ring, among other thing, the following were considered:
- Worker`s wage for producing the jewelry.
- Different manufacturing costs of the business – worker`s wage, rent, insurance, electricity, etc.
- Marketing and publishing costs – ads, Models, photography, etc.
- Cost of raw materials – the cost of the gold and diamonds.
- Profit above all expenses. The profit percentage and the sell cost may vary greatly even for similar raw materials.
But when you are approaching to sell gold and diamonds, in the vast majority of cases only one parameter will be considered – the retail price of the gold and diamonds + security gap that is called “waste”, which means that after refinement the obtained weight of gold is few percent lower than the original weight.
As stated, according to our experience this gap can even reach thousands of percent if the jewelry was bought “expensively”.
What can we still do in order to reduce the loss arising from these gaps:
In case the appropriate time has passed, try to sell the product back to the company you bought it from. In case of a shelf product that is marketed by them and is still being sold, they might pay a little extra for the jewelry. In case of a beautiful, unique, branded, in good condition, etc. Jewelry.
In case you have the time and patience try to sell it in the right platforms online (Facebook, eBay, second-hand websites, etc.). In order to maximize the chance of making a sale, give a cheap price tag and a proof for the original price. Take many clear photos and provide complete and transparent information.
Economical advice for anyone selling gold and diamonds
- In case you must sell the jewelry to people from the field. Our best advice is to physically go to a few places and suggest the jewelry (and not only by phone – what is said on the phone doesn’t correlate with what they will actually pay).
- In most cases, the price range in reasonable places will be similar since most of the time, most of this jewelry are being melted, but there might be a case that someone wants to keep the jewelry in its current state and therefore will pay for more than the raw material.
- This is an uncommon scenario since anyone buying a jewelry knows that it might stay in stock for years, but it doesn’t hurt to try and in this way you can also know that the offers you received are legitimate.
- Know approximately how much gold from every purity level (gold karat is mostly 14, 18, 21) you have.
- Ask to disassemble large and heavy stones, watch mechanism, etc. In case the buyer doesn’t dissemble them he / she is simply taking more waste (indeed he / she doesn`t pay for gold). Many times, the locks of a necklace are not made out of gold. You can check that in advance using a magnet – gold won`t be magnetized.
- In cases the jewelry has a relatively large central diamond (let`s assume as a rule of thumb 0.30 carat and above) and this is a jewelry not meant to be used, it is recommended to ask them to dissemble the diamond and evaluate it completely without the inlay concealment. Otherwise every merchant will assume the worst condition in order to protect himself.
- Additionally, in many cases jewelry are filthy and it might affects their appearance. Make sure the place is reliable and skillful.
- In case you have gold coins, it is worthwhile to invest half an hour for Google research to see if they have some collector`s value by any chance. This is very rare but it doesn`t hurt to try. Most traders buy them for melting either way but there are some exceptions. In case it is discovered to be unique, try to approach experts in Singapore or abroad (where the market is more significant…).
- Many times, it is better for you to keep the central diamond or to inlay it in another jewelry. Otherwise, if you will buy another jewelry in the future, you will pay more than what you got. Even if you don`t like the design of a certain jewelry, a diamond is always a diamond and can be used!