Jul 07
9
How To Sell Your Jewelry – Truths and Myths
- Quick and Easy Jewelry Appraisals
- Jewelry Insurance Tips
- Jewelry Disasters
- Jewelry Security
- How To Choose Your Diamond Rings
- Choose The Right Custom Engagement Ring Setting
- How To Start Your Very Own Diamond Jewelry Store
- How To Find A Diamond Link Bracelet
- How To Find Gold Value
- How To Sell Your Jewelry – Truths and Myths
- How to Sell Jewelry
After 35 years working in the Jewelry Industry, one of THE most common questions we get is How to Sell Jewelry.
Generally this is because people do NOT understand what an Appraisal really is - or what it is for.
As a gemologist and Valuer I understand that my client in NOT the person standing before me in the Lab.
My client is in truth, the Insurance company, and the appraisal certificate is for them - not my customer. Yet this is NEVER explained to them so they THINK that if I Value something at $1000 dollars - that is what it is worth. It is NOT. That is the Insurance REPLACEMENT VALUE.
So in an attempt to explain it fully, and after receiving a request for information, I decided to publish both the original question and my answer in the hope it might make things clearer to visitors to this website.
Here is the Question:
Hi David, I own an engagement and wedding ring set which I would like to sell.
I did have it appraised by a professional Gemologist here in Ottawa, Ontario.
Warman's Jewelry (3rd Edition)
It has been appraised at $3,100.(Cdn). Outside of going to a Jewellery Store and them offering me more than less the appraised value of the rings, I would like to know if you would suggest another route I might go to sell my rings?
Also what would you think would be a fair market price to ask?
I also undertand there are personal newspaper ads which can be put in the local area but wondering if you could suggest another source to sell a lovely set of rings.
In advance... thank you for your time. It is appreciated.
Answer: G'day Barbara and many thanks for your query.
The first thing you have to understand is that ANY appraisal is designed for the INSURANCE companies and NOT for we mere mortals.
In other words it is a method by which the Insurance company can charge you a premium to insure your jewelry at a set price - valued one year into the future (just in case it is lost or stolen in that time frame).
It has NOTHING to do with the resale or retail price.
How many times have you seen your local FRIENDLY jewelers selling items at 50% percent Off - That's HALF PRICE - But 'Off What?'
The secondhand value is based on a percentage of the appraisal - usually anywhere within 10% percent to approximately 60% - 70% percent and it comes down to "How Desperate Are You" to sell.
The ONLY true price of an item is what YOU (as a willing seller) can get from a WILLING buyer. This agreed price can be anything.
There are several 'Ball Park' figures of course, and you might like to check places like eBay to get a rough idea what something will fetch on the open second-hand market...
Article Continued Below...
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Article Continued...
If you were selling due to a Probate from a Will - Then you MIGHT expect (but not guaranteed) as much as 60% percent of the appraisal figure. That depends on Time. If you need to sell in a hurry - down comes the price. If you are not desperate - wait for a better offer.
Pawn Brokers will generally pay in the 10% to 25% percent range (because they have to re-sell it, and the most they could hope for is the same top end price ie: 60% percent. They like to double their money and that's how they make their living.
Antique Dealers might pay a slightly higher price because they ask a premium for period jewelry, but they won't pay too much higher because of the same resale price.
Auction Houses TRY to sell for half price (50%) but by the time the fees are taken out of the transaction - you might be left with a third. Not a Great option either.
Jewelry stores tend NOT to buy secondhand because of two reasons.
- 1: They can buy from the wholesaler or manufacturer at half price or less - pay on a 90 day invoice and still make 100% percent on their money - and...
- 2: They don't want people thinking there is secondhand jewelry for sale in the their shops because it lowers their image. This also makes their 'Half Price Sales' less effective.
eBay and the like try to get 50% percent (sometimes a little more) but again there are fees involved. The Antique Jewelry Fair at http://www.antique-jewelry-fair.com/ often gets secondhand jewelry for sale, but unless it is a Victorian or Quality Antique item, can still only manage between one third to half of an appraisal value.
Some Second-hand dealers might sell it for you on 'Consignment' but again it depends on 'Time' and 'Price' plus there is their fee again.
The ONE MAJOR PIECE OF ADVICE it can give is DO NOT try and sell something through your local Newspaper classified ads. You do not want some strangers coming to your home and looking around KNOWING you have something of Value there. Beware...
The best price you are likely to get is selling to a friend or relative. The transaction is private and you can usually get a slightly better price. The argument usually comes when you realize there is no Sales Tax on the secondhand item because it has already been paid when YOU bought the jewelry.
So it's a tough one - There are no fixed rules and no fixed prices. You can only get what you can get.
Doesn't sound like much of a help really - but that is the reality of the situation. Jewelry should never be considered an investment unless it is Antique or Collectible.
Modern Jewelry (which can be purchased just about anywhere at half price in the sales) will never recoup what you paid for it.
Now all you have to do is find that elusive WILLING buyer. Just don't give it away - but in saying that - is there someone you might like to pass it down to?
Just a thought, and you might like to complete a Jewelry Appraisals Online Certificate to go with the item.
