All of us are entranced by the shine of gold and the gleam of diamonds. While jewelery is obviously beautiful to behold, we also need to remember that it can represent a powerful form of investment. During an uncertain economic climate or if you happen to come upon hard times, selling these precious items can often provide you with a much-needed sense of liquidity. However, there are still a few important variables to address. What are your options when selling jewelry? How are gold and other precious metals valued? What can you realistically expect to receive in terms of profit? Let us address each of these questions in a bit more detail.
What to Know Before Selling Jewelry to a Dealer
It is first important to mention that in the majority of cases, it is best to sell any item such as a ring or a necklace to a jeweler as opposed to having it melted down for its precious metals. This arises from the fact that elements such as precious gemstones and craftsmanship will add to its value. Other variables which will contribute to the worth of a piece include:
- Provenance
- Its age and where it was designed
- If it happens to be highly collectable (such as if it is part of a limited edition)
Having said this, it could still be worth scrapping an extremely worn or generic item such as a simple gold necklace or an old class ring from university.
What About Gold, Silver and Other Precious Metals?
We need to remember that precious metals such as gold, silver and platinum are commodities traded on the open market. Thus, they are always in demand. This is why some jewelry will be melted down in order to extract these elements before refining them into solid ingots. The worth of the metals in question will always revolve around their purity. For instance, amalgams of gold (such as rose gold) and gold of a lesser carat are worth less pure gold (24 karat).
Knowing where to sell gold is likewise important, as it is always better to work with an authorized jeweler or a dedicated gold buyer. These individuals are able to offer a greater degree of transparency.
The Market Value Versus the Payout
How much profit can you expect to make when selling your jewelry? Assuming a piece will be melted down for its precious metals, the market price will naturally be taken into account. As the dealer in question still needs to turn a profit, you should not expect to be paid its face value. It is also obvious that profit margins will vary between “quick cash” establishments such as pawn brokers and recognized traders (even if the piece in question may take slightly longer to sell).
It is nonetheless wise to speak with at least three dealers in order to obtain a realistic estimate of what you can expect to receive. After all, why let spare trinkets collect dust when they could be turning a profit?
The post Selling Your Jewelry for Extra Liquidity: What You Need to Know appeared first on MoneyMagpie.
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