In the world of jewelry there’s constant exposure to extreme retail mark ups. On the other hand, when selling you’re jewelry, you’re likely to encounter scammers with nothing but low ball offers. Both sides have one thing in common; the desire to make extra cash at your expense.
When looking to purchase new jewelry it’s wise to compare prices across multiple retailers, and it’s also important to find an ethical jeweler who prices quality pieces appropriately. When it comes to diamonds and engagement rings be sure to work with someone who specializes in the 4Cs of diamond quality, so you know that you’re getting exactly what you’re paying for.
Alternatively, if you own a jewelry box full of pieces that you no longer wear, or if you have inherited jewelry from a family member that doesn’t quite align with your personal taste, then a great way to make some quick cash is to sell to a secondhand dealer. Again, you want to make sure you are dealing with someone who it ethical and does not have a reputation for low balling their clients.
With today’s technology, there are many avenues in which you can buy or sell your jewelry. However, you just want to make sure that these avenues are safe and legitimate, so you can protect yourself against fraud or overpaying.
Buying Jewelry
Buying Jewelry Online
While ads on social media may look legit, it’s easy for scammers to make their advertisements seem appealing, or even look like designer brands. It’s important to read the descriptions and make sure that the site you are on is a secure site, and that it belongs to a legitimate dealer or jeweler. While it’s perfectly acceptable to purchase beautiful, handmade jewelry from someone’s Etsy shop, you probably want to reserve your fine jewelry purchases for an in-store encounter with a more personal touch. After all, the experience is half the fun!
If you insist on buying jewelry online, then we recommend a site like eBay where sellers must disclose real, true information on items they’re selling.
Buying Jewelry from a Jeweler or Local Boutique
Trying on a jewelry piece that you have your eye on is the best way to know if it’s truly for you. It’s difficult to visualize size, quality, and true color (even with excellent photo quality). You may fall in love with something online or in a catalog, but when it arrives it might not align with your style preferences or expectations.
Going through the return process (if returns are even allowed) is a hassle that you can avoid by shopping around in person.
Also, the in-person experience lets you compare other items and understand why items are priced a certain way. You will have the opportunity to ask questions and learn the true value of your jewelry piece before you purchase.
Selling Your Jewelry
Selling Jewelry Online
If you’re trying to sell your jewelry online, please use extreme caution. There have been many complaints on Better Business Bureau (BBB) claiming that many online buyers have either made lowball offers, have refused to return the jewelry pieces if their offer is rejected, or have even failed to send payment at all.
If you’re selling to an online jewelry or gold buyer, or secondhand dealer, make sure to check the company’s reputation with BBB first. If they have fine print regarding online sales, read it. You want to do your research and be as informed as possible so you know exactly what you’re dealing with.
Before shipping the item, make sure to take as many photos of your jewelry piece as possible and send it with insurance. Also, be sure to keep an eye on tracking so you know exactly when it is received by the company.
To know the true value of what you’re selling, you can always get an appraisal from a group like the American Society of Appraisers, the International Society of Appraisers or the National Association of Jewelry Appraisers. Each one of these groups is required to adhere to standards and ethics. However, the cost for appraisal can run between $150 to $350 an hour, so the more complex the piece the more it can potentially cost you. You may be able to find an appraiser that will charge per item, but an appraiser should never, under any circumstance, charge you a percentage of the value of the item.
You can also look for an expert jeweler or secondhand dealer near you that could give you an idea of what your item’s value is. Some companies like this will give free evaluations and may even be able to make a cash offer or provide consignment options. Just be sure to check their reviews and research them on BBB first. Aside from that, go with your gut. If something doesn’t feel right then get a second, or even third, opinion. Don’t sell your piece(s) unless you feel comfortable with the transaction.
If you feel that your jewelry isn’t worth much to begin with then you can always skip the appraisal, but be warned, many items that don’t “look” valuable may actually end up being worth much more than expected. You hear stories all the time of people who come across antique jewelry or coins that they thought were worthless, only to find that they were in fact worth a small fortune.
Selling Your Jewelry in person
Still to this day, selling your jewelry in person is the best way to get the most money for your valuables. By selling locally you have many avenues to choose from: jewelers, secondhand dealers, coin shops, pawnshops, and consignment shops.
Regardless of which option you choose, if you do not feel comfortable, get more than one opinion, especially when dealing with high-value items. Let the buyer know you’re planning on getting other estimates so they will give their best offer to stay competitive.
Keep in mind that just because something appraises at a certain rate doesn’t necessarily mean that you will be able to sell it for that price. Many appraisals are meant to determine replacement cost for insurance purposes, not the resale price of the item. Along with your appraisal, you will want to request a resale price estimate, as well as a fair market liquidation estimate.
With gold or other precious metals, you may be told the “melt” price of your piece, but this is just the base value of the metal only (not including diamonds or other gemstones). If you were to try to sell your piece for melt, you are unlikely to get this price. As a business, the buyer also needs to make a profit, so they will factor in their own profit margin. If you’re getting 70 to 80 percent of the melt value, that is more than fair.
Above all else, selling your item in person gives you the opportunity to sit down with the buyer and ask as many questions as you want and receive immediate answers, which is a luxury you won’t usually find when trying to sell online.
Selling on Third-Party Classified Ad Websites or Apps
If you have already visited a jeweler, secondhand dealer, or “We Buy Gold” shop and didn’t receive a cash offer you were happy with, then you might be considering trying your luck selling on your own with a website like Craigslist or Offer Up, for example.
When selling high-value items on your own, safety is always a concern. If you receive an offer from one of these sites, meet at a bank or a jewelry store where you know there will be extra security. Many local police organizations also have programs set up to meet with potential buyers. No amount of money is worth sacrificing your safety.
A downside to this method is that you will most likely encounter flaky buyers who aren’t serious about the purchase, or people who try to haggle and offer much less than you’re asking. Sometimes this is more frustrating than fruitful, so if you don’t want to deal with the public on your own then consigning your piece with a vendor is another excellent option.
Consigning Your Jewelry
If your local jeweler or secondhand dealer can’t pay you what you want then consider leaving your jewelry piece(s) in their cases where there will be sufficient traffic and serious buyers every day. This option is best if you’re not in a hurry. Not every dealer will offer consignment services. However, most fair buyers will also offer consignment as an option.
Typically, when consigning a piece, you let the vendor place it in their case at a price you both agree on. When the piece sells then you will be paid, minus a percentage that the vendor keeps for showcasing your item. It’s a fantastic way for both parties to be happy and profitable.
If after some time your piece has still not sold, you can then decide if you want to continue leaving it on consignment or take the original cash offer and part ways.
Buying or selling jewelry may seem complex, but it doesn’t have to be! If you still feel like you’re not sure where to go from here, feel free to contact our jewelry experts for some guidance, or find a local jewelry expert you trust and consult with them for further assistance.