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Before you decide to sell old or broken gold jewellery, you should know a thing or two about how its resale value will be determined. Gaining a better understanding of what you can expect from old jewellery will help you decide if you want to sell it in the first place.
Adjusting Your Expectations
If you are planning on selling gold jewellery that you purchased yourself, you may need to adjust your expectations for how much you can get from it. When you buy jewellery, you are paying for the design, the brand name, and the marketing behind it. When you sell jewellery, those qualities may not factor into the buyer’s evaluation – with some exceptions for luxury brands detailed further down.
For the most part, when you sell old jewellery, you’re selling the gold (or silver) contents, as well as precious stones like diamonds. Keep reading for more details about how jewellery is valued on this basis.
Finding the Right Jewellery Buyer
The best place to sell gold of any variety is usually a bullion buyer. Bullion buyers will purchase investment-grade products like gold bars and coins, as well as jewellery, heirlooms, and any item made from a precious metal.
You may also be able to sell old jewellery to pawn shops or pre-owned jewellery sellers, but bullion buyers are usually able to offer the best possible prices. In most cases, they plan to melt down the jewellery and recycle the precious metal contents.
How Global Gold Prices Impact Jewellery Resale Value
The global market for gold bullion will have an impact on the price at which you can sell old jewellery. Since bullion buyers are interested in old jewellery primarily for the precious metals content, their profit margins are determined in part by the global price of gold.
Some of the factors that impact global gold prices include:
- Inflation.
- Interest rates.
- Returns from stock markets and bonds.
- The value of the U.S. dollar.
- Supply and demand.
- Levels of geopolitical uncertainty.
The type of gold that you bring in can also impact the price. For example, jewellery usually has to be melted down, which adds to the buyer’s costs, whereas bars and coins may often be resold directly.
The Top Brands for Resale Value
There are exceptions to the rule when it comes to luxury and designer brands for jewellery. Some brands do a much better job of retaining their resale value and are less likely to be melted down than resold. Some of the top brands for resale value include:
- Van Cleef & Arpels
- Louis Vuitton
- Hermès
- Chanel
- Rolex
- Cartier
- Patek Philippe
The resale value of designer jewellery can vary between collections. For example, the Van Cleef & Arpels Alhambra collection resells for an average of 86% of the retail price, while the Cartier Love Collection resells for an average of 78%. In some rare cases, jewellery and watches may even increase in value if they are highly desirable and in short supply.
Before you resell jewellery, do your research into what it may sell for. Find out its precious metal contents and look into the going prices for gold.
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