As the price of gold rose in recent years, so did the companies advertising that they purchased gold, silver, diamonds and other precious metals. The trouble is that while any company can purchase these items, very few are actually qualified to evaluate theses pieces accurately and assign a fair value to them.
Figuring out which diamond buyers are actually qualified and trustworthy can be a tricky task if you do not know what to look for. Below are some the most important things to know if you find yourself in the position to sell jewelry.
Sometimes items are handed down as heirlooms and the intrinsic values are stretched in stories as they are passed from one person to the next. Determining value is the first step in selling your jewelry.
There are many variables that contribute to a diamond’s value. Think of selling diamonds like selling a house – when you go to value your home, you factor in square footage, location property condition, and more. The same is true for a diamond – you must know the carat weight, color, clarity and cut in order to determine the value.
Once these characteristics are known, the value of the diamond or diamond jewelry can be obtained. However, if the business or diamond buyer you are working with is unable to accurately grade the diamond, they are unable to accurately assign a value to it.
The common result is that the consumer is greatly underpaid for their diamond. The difficulty is finding a qualified buyer who can accurately grade diamonds, and know how to associate a fair value.
Testing the metal to make sure it’s genuine gold can be done cheaply and easily with a simple test. In addition to testing, information about each piece can sometimes be easily found through stamps on jewelry that indicate brand, metal purity and even age. All of these will help you determine its value more accurately.
Remember you don’t get paid for the jewelry in relation to what you paid but the condition and demand when you sell.
Just like everything else, jewelry looks it’s best when cleaned. Properly clean your jewelry before showing it around. However, the wrong cleaning can damage and even destroy jewelry. If your are unsure of how to clean the jewelry or gem, let the professionals do it.
Here are some cleaning tips:
Know for certain the best cleaners to use on your jewelry and do it carefully.
Never clean gold and gems in chlorine. Ammonia based cleaning products can damage some gems. Try and avoid them.
Use a mild soap with warm water and a soft toothbrush, then rinse thoroughly.
Know the price
The more precious metal in the jewelry, the more the piece is worth. The current price of gold or silver is known as the spot price. No gold buyer is going to pay you the spot gold price. They will pay you the melt price—what it costs to melt the precious metal down to its purest form. And each gold buyer will take a small percentage as a commission. This commission and their ability to accurately estimate the jewelry’s value is why you will see evaluations of the same piece vary from buyer to buyer. It’s why you should do your homework and research buyers.
Before you sell, make sure your gold does not have any antique value that would trump its meltdown value.
Being honest with yourself about your jewelry, especially if it has sentimental value, is important. When selling jewelry, you’re not going to get the retail value. Researching different prices may be initially helpful, but continuing to do so until you find a price that is almost retail will likely frustrate more than benefit you.
Stick with reputable review sites and do your research. Trust sites like the Jewelers Vigilance Committee and review sites that allow for customer reviews directly on their sites, such as Angie’s List.
“Independent” ranking sites about Top Diamond Buyers are usually not what they claim to be. Work with a company who has earned their reputation rather than one that has purchased it through clever Internet marketing.
- Unfortunately with fake review sites also come a handful of other Internet scams. Here are some useful tips:
- If you are trying to sell a diamond piece locally on a platform that allows you to post something for sale in your local town, do not send your diamond piece to anyone other than a company, regardless of how many emails you get from PayPal saying funds have been deposited into your account.
- Choose a company that is easily accessible by phone, has a brick and mortar facility and that you feel comfortable with.
- Stay away from companies that send high values via email quotes.
- Avoid companies that advertise fast cash.