Selling your gold, silver, and old jewelry is not a simple task and sellers should know that they will never recoup what they may have paid for the item. Although gold and other precious metals and gems have increased in retail costs, buyers generally offer “scrap” value which is often far less than the appraised value of a ring, bracelet, or other item. The following tips will help the seller to recoup some of the costs and make some money.
Gold, Silver and Stones
Under a recently passed federal law, all purchases of gold and silver must be recorded by the buyer. Do not be surprised when asked for valid picture identification, such as a driver license. This applies to all purchases regardless of the agreed-upon amount.
Buyers will make an offer that is based on “scrap value.” This amount is generally far less than what you originally paid for the item and less than any appraised value. Appraisals, usually applied to insurance riders, cover replacement cost, but this does not reflect amounts you may be offered by a registered buyer.
If you are selling rings that contain precious or semi-precious gem stones, do not expect the cash offer to include the stones. Many buyers are only interested in the gold and silver and have no use for stones. If you sell, the stones will be removed and returned to you. Top quality jewelers will only be interested in stones that are flawless, like diamonds with superior clarity and no inclusions.
It is also important to know that buyers’ offers will be based on gold content. 18 carat gold has a higher gold content than 14 carat. Few items are 24 carat due to the pliability caused by the high gold content. Gold-plated items are usually not considered, much like fashion-jewelry.
When selling gold and silver jewelry, look for reputable jewelers that have been in business for a long time and are known in the community. The Better Business Bureau (BBB) can provide lists of gold and silver buyers that have positive business records and strong consumer recommendations.
Options to Sell Jewelry
Some jewelers and antique stores will accept jewelry on a consignment basis, selling the pieces as “estate jewelry,” keeping a percentage of the selling price. This usually involves specialty items like heirloom pieces or one-of-a-kind pieces that were designed for a specific customer.
If you have many pieces, it is advisable to obtain an independent appraisal by a certified jewelry appraiser. Although this entails a fee depending upon the number of items appraised, the appraisal helps when negotiating a fair price with a potential buyer.
It is never advisable selling items on the internet. Shipping costs must include insurance and a guarantee of payment. EBay is probably the most reliable on-line site for internet sales that involve jewelry, watches, and similar items.
Selling Your Gold and Silver Wisely
In most cases, buyers will not vary in the cash offers for your gold and silver whether it is an old established jeweler, a pawn shop, or a smaller enterprise. Some chain stores will not buy any items. It is wise to shop around, call prospective local buyers, and check with organizations like the BBB. It is also wise to call your CPA, tax preparation service, or the IRS to determine any tax liability resulting from your sales.
Sources:
Interviews with retail jewelry sales associate with fifty years of experience and a certified jewelry appraiser
