Impatient sellers beware. Don't sell off your jewelry to the first gold buyer without doing some research first. People make many mistakes that end up in decreased profits.
Selling off old or unwanted jewelry to a gold buyer can be an easy way to raise some much needed,
quick cash, especially with historically high prices. Too often however, eager sellers end up getting ripped off by low offers, misunderstanding the terms of sale, or choosing pieces that have more value as resale jewelry rather than being melted down. Here are five mistakes to avoid when claiming your piece of the pie.
1. Heirlooms
If you have some pieces of jewelry that are family heirlooms, passed down from several generations, you'll likely benefit more from hanging on to these. It isn't so much about profit, but about leaving a small legacy for future generations. Most people's possessions consist entirely of mass-produced items, making these small tokens priceless artifacts from a family's history. The price of precious metals still isn't high enough to warrant selling off a treasured necklace or ring, even if you are in dire straits.
2. Precious Stones
Is the gold buyer paying for any stones included in the jewelry as well? Some buyers will only pay for the metal. This is especially true of Internet or mail-on companies. You may be inadvertently giving away that diamond for nothing. If they aren't planning to pony up for the stones, remove them on your own for future sales or later use. The price you receive should stay the same, as they generally will deduct the weight of the stone from the piece to determine your total profit.
3. Design
Did you know that you are likely paying more for the design elements of a piece of jewelry than the actual value of the metals or any stones? In the United States, jewelry is still seen as a luxury or decoration rather than an actual investment. When you purchase a thousand dollar bracelet from a store, the price must include design, distribution, marketing, labor, and any other costs that require it to pass from the retailer to consumer. This is money that you will never recover from a gold buyer, so be sure that you're willing to part with the piece.
4. Shop
There can be great discrepancies in price amongst various buyers, so sellers should shop around. Check the market value on the day you plan to sell, weigh your pieces, and plan to receive at least 70% of the estimated worth (remember, the amount of karats matters as well). If you're considering the Internet mailer route, ensure that there is the option to reject the offer and have your jewelry returned.
5. Skip the Pawn Shop
If you have an estimated few hundred dollars worth of metal waiting to be turned to molten goo, shop around with an exclusive gold buyer. Pawnshops give lowball offers, as they will often turnaround and resell it to a refinery for a better profit. However, if the value of your jewelry is concentrated in design elements, antiquity, stones, or other precious metals, a pawnshop, auction, or similar buyers may fetch higher prices.
