Our fifth monthly tip takes a break from last week’s math of karat calculations to talk about jewellery. First of all, why do you need to know how to sell used jewellery? To answer that, we need to define what is jewellery is (and is not). Then we need to answer why do people buy jewellery, and why do people sell jewellery?
What is Jewellery?
The word jewellery traces back to the old latin word jocale, a plaything. Most jewellery (or jewelry in the USA) is small and tends to fall into rings, necklaces, bracelets, and earnings. Most of, most often, wear jewellery on the body, and most jewellery is meant for others to see. For hundreds of millennia, humankind has been crafting these personal ornaments from natural objects and metals. Gold and gemstones have become the de facto standard for high-end jewellery.
Owning jewellery is not the same as investing in gold. Many countries have highly valuable crown jewels. These do not derive most of their value from precious materials. To the contrary, most jewellery is valued for it’s artistic merit, quality, and aesthetic appeal. In the care of crown jewels and other such rarities, their historic significance is a major actor in their value. We can clearly say that jewellery is not an investment. In fact, the relationship is quite the opposite. Batchelor & Gulley showed that “jewellery is the most important end use of newly mined gold”. Where jewellery demand influences gold prices, gold prices have little or no effect on jewellery prices. The main reason you need to know your jewellery is that its price is so far (normally at least 5-10x)beyond the intrinsic gold value, it becomes silly.
Why Do We Buy Jewellery?
In Diamonds are a girls’ best friend, Tilmann Habermas proposes that jewellery serves two principle functions. First, to communicate the socially distinguished, and second, to develop personal-mutual relationships.
Most people buy jewellery because they find it visually appealing, and psychologically relaxing. Two-thirds of women, according to IDX, buy it for these very reasons. It is the emotional connection to consumption that people find jewellery so valuable, sentimentally. There are, however, certain background factors, i.e. a high disposable income, that enable the purchase of jewellery. There are generally two phases in buying jewellery: deciding to buy jewellery, and deciding what jewellery to buy. In the latter regard, people don’t usually think about how to sell jewellery as an important factor in their decision. Instead, they look to factors such as self-expression, rationalizations, and status. In other words, jewellery purchases are a clearly “left-brain” activity.
In our surveys, customers cited a good arrangement, good salespeople, good service, and other “soft” factors as the make or break points. When they ask us how to sell used jewellery, however, their thoughts come first to price.
A Guide on How to Sell Used Jewellery
Plenty of people want to sell used, broken, and old jewellery for cash. The main question people try to answer before selling their use jewellery is whether the should hold on to it. Generally, jewellery is anything but an investment. That’s not to say that if you purchase jewellery some time ago, and it’s just lying around the house, unwanted, you shouldn’t think you will get a pretty penny for it. What you need to look out for is that you keep as big of a share of the penny as you can. That’s when the how to sell used jewellery question comes in.
Look online– you’ll probably see what we do. Toronto alone has tens of different gold and jewellery buyers. Have a look at our the best gold and jewellery buyers by review.
Does brand matter when selling jewelry? If you’re trying to understand how to sell used jewelry, stem from Van Cleefe and Arpels will often double or triple your resale value. What that in mind, it will also double or triple your purchase value (at least).
You want to look for is the composition of your jewelry. Have a look at last month’s tip on karats and gold percentage two understand how to do that. Always remember that you need to adjust the price of gold to your currency, Canadian dollars. You can follow the price of gold on our gold price page.
We generally recommend that if you’re offered over 80% of the spot price, you don’t worry too much. There costs involved in recycling for gold. Moreover, the time and money you will spend shopping for the extra few points will cost you more. Some people will tell you to get rid of used jewellery, as it’s a totally non-productive asset. Others think that you should keep it. Either way, to get more money for your used jewellery, be informed, and make sure you go somewhere you can trust.
A final word of advice if you want to know How to Sell your Used Jewellery:
Stay informed on gold/silver/platinum price, always inspect and research your jewellery, and get multiple offers if possible.