So I’ve decided to sell my gold. What now? When it comes to selling gold jewellery, it’s a big and confusing world out there. Doing your research and making informed decisions beforehand are your best chances of successfully getting a fair price, and a large part of the whole process is understanding resale values and pricing of selling gold second-hand. Whether you are selling off jewellery in order to upgrade your bling, are liquidating an estate, or just need a little extra cash (and who doesn’t?), here are some considerations to take into account when it comes to pricing.
Depreciation and mark-up
We’ve all heard that old pearl of wisdom about buying a car – that the value of the vehicle drops sharply the second it leaves the dealership. Sadly, the same is true of jewellery. Over time, value depreciates, and when you’re selling it on the second-hand market down the line, the original retail price is usually inflated to cover the business expenses of the company buying it. That means that their profit on the item, as well as a part of their operating expenses, are really being paid for by YOU, the seller.
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The importance of an appraisal
An appraisal is an appraisal, right? Wrong. Different types of appraisals are done for different purposes, and you need to clarify with your buyer what kind of appraisal is being carried out, and for what reason. If the wrong type of appraisal is done, you will not only be getting the wrong price for your goods, you also won’t have a leg to stand on legally, because you most likely will have signed it.
- Appraisal for retail replacement value
- This sort of appraisal is often carried out for insurance purposes, and is defined as the highest financial value that would be needed to replace the item with another one of similar age, appearance, quality and condition within a reasonable amount of time.
- Fair Market Value
- The price at which the item would change hands under agreement between a willing buyer and willing seller.
- Resale Appraisal
- A resale appraisal determines the fair market related value of the item for the purposes of valuing it with the express intention of reselling it. These appraisals allow the selling of jewellery in the trade, or directly to an end customer.
Finding a certified gemmologist or jewellery appraiser to value your jewellery accurately and fairly, or working with established companies and even auction houses, can all help you to avoid being taken for a ride when you’re looking for appraisals, but at the end of the day it’s up to you to make sure you know what your jewellery is worth.
The internet is a great place to find information, so do your homework and research the jewellery pieces you’re looking to sell. Find similar pieces for sale online and find out what their prices are like. Do your research with regards to precious stones and gold purity, and how these affect value, and you’re well on your way to getting a good handful of cash for your old trinkets!
Main Image Credit: goldsmiths.co.uk