Got old jewelry with diamonds that you are looking to Cash in on?
If you’ve ever tried to sell your gold jewelry accented with small diamonds and felt a little let down by the offer, you’re not alone.
Many of us have experienced that moment of disbelief: “But I paid so much more for this!”
Let’s unravel the mystery behind why the resale value of your dazzling pieces might not meet your expectations.
Factors that Affect a Retail Jewelry Price:
When you purchase a piece of jewelry, especially those shimmering gold pieces with diamonds, you’re not just paying for the raw materials.
Much like buying a new car, you’re investing in craftsmanship and design.
Here’s a breakdown of what you’re actually paying for:
- Stone Setting: Each diamond, no matter how small, needs to be meticulously set into the piece. This involves skilled labor to ensure the stones are secure and beautifully aligned.
- Jewelry Labor: The hands-on work that goes into crafting each piece is invaluable. Jewelers spend hours on tasks like polishing and refining to make sure your jewelry sparkles from every angle.
- Polishing and Casting: These processes require both time and expertise. Polishing brings out the shine, while casting shapes the raw metal into stunning designs.
- CAD Design: In many modern designs, Computer-Aided Design (CAD) is used to create intricate patterns and ensure precision. This technology isn’t cheap and adds to the overall cost.
- Brand Markup: If you bought from a well-known brand, a significant portion of the price might be attributed to the brand name and the stigma it carries when you wear it.
Factors that Affect a Buying Price:
Now, when it comes to selling your jewelry, the tables turn.
Especially for:
- Older style pieces that are no longer in fashion, even expensive designer jewelry.
- Broken jewelry or a single earring
- Eternity rings
- Chipped or damaged diamonds (yes, diamonds can chip!)
Buyers are primarily interested in the scrap value of the raw materials—gold or precious metal and diamonds.
They aren’t paying for the labor or the artistry that originally went into the piece.
Here’s why:
- Raw Material Focus: The buyer, often a jeweler or gold dealer, is looking at the intrinsic value of the materials. This means the weight and fineness of the gold or precious metal and the quality of the diamonds, minus any artistic flair or branding.
- Small Diamonds: Unfortunately, small diamonds (often those under half a carat) don’t hold much resale value individually. They might be beautiful as part of a finished piece, but their market value is limited when detached.
- Cost of Dismantling: There’s a process and cost involved in extracting the diamonds and melting down the gold, which the buyer must recoup.
So, while your jewelry’s purchase price covered a lot more than just the materials, when selling, you’ll receive an offer that reflects only the core value of those materials.
It’s a bit like selling a used car: you’re paid for the metal and parts, not the experience or memories the car provided.
My Advice:
Most jewelry is very sentimental & has a heartfelt story to it which is a beautiful part of enjoying jewelry. But, unfortunately, the harsh reality is that a jeweler doesn’t care about the history, they just look to see if they can resell it. If they feel that it doesn’t fit their clientele, they will just buy for the scrap or raw material value.
- Research a jeweler that has a large estate section
- Look into Auction sites
- Use the stones to create a custom redesigned piece that you would wear
Custom Heirloom Redesign Example:
Understanding the reality when it comes to selling your jewelry with some diamonds can help set realistic expectations and perhaps even appreciate the complex world of jewelry making a little more. If you have any more questions, feel free to ask—I’m here to help make sense of it all!
Need more assistance? I am happy to answer any questions you may have regarding your jewelry.
Need an expert jewelry appraisal? For a Professional Appraisal with me, Jennifer Vichinsky, GIA Graduate Gemologist, click the button below to schedule your appraisal appointment.
Appraisals are done in person at my comfortable home gemological lab right in front of you, while you watch and wait. Feel free to ask any questions before, during or after; I love to educate!
You will leave with a colored print-out in a protective plastic sleeve so that your appraisal stays as secure as your jewelry. I also send you a pdf version to easily email to your insurance provider.
If you have old or inherited jewelry and you would like to unlock the mysteries of your treasures, I offer FREE Jewelry Sorting Solutions.
Just click the button below to schedule a convenient date and time!
