Archive for February, 2011

Things to Know When Selling Your Gold

Wednesday, February 23rd, 2011

The price of gold has been reaching records highs over the last few years, prompting many people to sell their little-used gold jewelry. But most people have no idea what their gold is worth. Gold is sold on an open market, so the price of gold changes daily. However, the price of gold has been over $1000/ounce for several months, so this is a good time to get rid of your gold if you need extra cash.

Many gold buyers, including jewelers, will purchase gold in various forms besides jewelry, including gold bars, gold coins, and scrap gold. But most people who are looking to sell gold have gold in the form of jewelry.

You should try to avoid selling your gold jewelry as scrap gold, which can cause you to lose up to 75% of its retail value, since the price you get will be based on the value of gold metal. Scrap gold buyers will not take into account a piece of jewelry’s craftsmanship or antique value, not to mention any personal or heirloom value it may have to you and your family. When selling gold jewelry as scrap gold, its best to sell broken pieces, earrings that are missing their mates, old class rings, or a plain or engraved wedding band from your ex-spouse.

There are three main types of buyers that will purchase your gold jewelry:
1.    Jewelry stores
2.    Pawn shops
3.    Online gold buyers
You should be careful when selling to all three, and always protect yourself by taking some precautionary measures. Typically speaking, however, jewelry stores will offer you the best value at the lowest risk for your gold jewelry. Pawn shops offer a lower risk as well, but tend to pay less for your gold jewelry than a reputable jewelry dealer.

There are an increasing number of online gold buyers popping up these days—and sometimes these companies will give you the best dollar value for your gold jewelry—but you should be wary of any company, online or not, that asks you to mail in your gold in a pre-addressed envelope and then wait for a check to come back to you in the mail. This option offers the highest risk for a number of reasons, chief among them that you won’t know how much you’re getting until you receive the check up to several weeks later.

If you choose to sell your gold to a reputable online gold buyer, choose a company that will insure your mail-package contents for you. If you don’t like the amount of the check you receive from a mail-in gold buyer, you can request that your jewelry be returned instead, although you will need to make this request immediately. In 2010, complaints to the Better Business Bureau about online gold buyers were up by 60%, so it’s not a bad idea to consult with the BBB before dealing with one of these companies.

The best way to protect yourself when selling your gold is to do your research, get your jewelry appraised, and try to sell to a local jewelry dealer with a good reputation, preferably one that either you or a friend know personally or have dealt with in the past. When choosing a local jewelry dealer, it’s always best to start with a company that has been recommended to you by someone you trust. Plenty of your friends and coworkers have bought or sold jewelry in the past, so ask around if you don’t have any experience in this area.

When selling your gold jewelry, it’s always best to start by getting an appraisal. This is something you should consider doing to protect yourself and your assets anyway, regardless of whether you are thinking about selling your jewelry in the near future. An appraisal will cost you a little bit of money initially, but it is often worth it because of the bargaining power you’ll gain by knowing how much your jewelry is worth and having the credential of an appraiser to back you up. Try to find a third-party appraiser—one that is not currently buying jewelry themselves—who is more likely to give you a fair price based on the current market value.

Once you’ve gotten an appraisal, it’s time to start doing your research about the companies you’re considering selling your gold jewelry to. Start with local jewelry stores you’re more familiar with and find multiple buyers, which will allow you to “shop around” and see the range of prices you’re offered before you make a decision about who to sell to, often giving you additional bargaining power. Again, you can save some time by contacting the BBB about anyone you’re thinking of selling your gold jewelry to. Any jeweler who receives a bad review can be crossed off your list before you spend precious time going to their store.

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What to look for When Purchasing Used Jewelry

Wednesday, February 23rd, 2011

There are a number of important considerations to make when purchasing any piece of jewelry, and used jewelry requires some special concerns to make sure that you’re buying the right piece at a good price. Used jewelry can be purchased from a jeweler, pawn shop, estate sale, second-hand store, consignment shop, or even a yard sale. No matter where you’re buying jewelry from, educating yourself about some jewelry basics will help you be a savvy shopper and protect you from making a poor purchase.

Although you may be able to find some bargains by purchasing jewelry from someone who lacks professional jewelry knowledge, there are some benefits to buying used jewelry from a reputable jeweler:
•    You can rely on industry experts to provide you with accurate information about the pieces you’re considering.
•    You will feel comfortable buying from someone that you may know and trust, or who has a reliable reputation in your area.
•    You can check up on professional jewelers you don’t know by viewing their website, finding reviews online, and calling the Better Business Bureau.
•    Your purchase may come with a warranty, free or low-cost maintenance and cleanings, and the option to return the item within a certain timeframe.
If you ever feel uncomfortable about a purchase you’re considering, you should listen to your gut feeling and walk away. And if you choose to buy from a professional jeweler, you can return the following day after you’ve had a chance to sleep on it.

Antique jewelry is often extremely unique or one-of-a-kind, making it a great gift for someone special or a wonderful addition to your current collection. Antique jewelry must either be inherited or purchased used, so it’s always a bonus if you find someone who knows about the history or origins of an antique piece. There are a few things to know when looking at jewelry you’re told is “antique”:
•    Antique jewelry was made before the year 1900.
•    White gold was not available before 1920, so jewelry containing white gold is not considered antique.
•    Platinum was not on the market until about 1900, so it is not technically antique.
•    Most early pieces from the Georgian or Victorian eras were made from silver, while some rarer pieces were made from yellow gold.
•    Coral, mother-of-pearl, tortoise shell, and other shells were often used in antique jewelry, as were ivory, pearls, semi-precious, and precious stones.
•    The type of clasp or fastener is another way to tell if a piece is antique or not. Most clasps and fasteners used in modern jewelry were developed after 1900, so a fastener you’ve never seen before is a good sign that you’re looking at an antique.

Of course, used jewelry does not have to be antique. A newer piece of used jewelry should be less expensive than it would be if purchased new, so the price is one initial factor to consider.

Another important consideration is the condition of the piece. You’ll want to look for anything that appears to be broken, such as a clasp or setting prong, and request that that it be fixed or replaced before you make the purchase. If you’re buying from a pawn shop, estate sale, or other place that sells its pieces “as is,” then you should use the broken part or flaw to bargain for a lower price, since you’ll need to pay to have the piece repaired elsewhere.

Finally, you’ll want to think about how any piece of jewelry you’re considering buying will go with the rest of your jewelry collection. The most important factor here is usually the type of metal it’s made from, since yellow gold doesn’t mix well with white gold, silver, and platinum. Yellow gold should be worn with other pieces of yellow gold jewelry, while white gold, and silver; platinum pieces can generally be mixed and matched together. You may want to consider your wedding band and engagement ring as the basis for the other types of metal jewelry you’ll add to your collection.

If the piece contains any gemstones, these should also be a consideration in accordance with your other jewelry. On one hand, you may want to purchase pieces with types of gemstones you don’t already own, to expand and diversify your collection. On the other hand, you may want to own many pieces that match or can be worn together, especially if you like to wear simple clothing styles embellished with a lot of jewelry.

Diamonds and pearls are two of the most diverse gemstones because they go with so many other pieces of jewelry, although they should not be worn together. Both gemstones can be worn with either yellow gold or white gold, silver, and platinum. They can also both be worn with a variety of other gemstones.

Posted in Buying Jewelry, Used Jewelry | No Comments »