Friday, January 8, 2010

Why is My Jewelry Not Worth What I Thought It Was?

Throughout the jewelry and gold buying industry, customers are often disappointed by the quote they receive when they bring in items for resale. There are several reasons that you may find yourself in a situation where your jewelry or precious metals are being quoted at a much lower value than expected.



In most cases jewelry and gold buyers are paying only for the value of the gold or precious metal in a piece. When someone purchases a new diamond ring, for example, the price includes the retail markup, craftsmanship, design, gemstones, and possibly a premium for a brand name. When you go to resell your jewelry, all of these factors that drive up the cost on the original purchase are negligible. There may be some exceptions when a piece becomes more valuable for resale as a jewelry item than it’s weight in gold. Maybe the piece has an exceptional stone or it’s brand name makes it more saleable. However, for the most part, the value of a piece will be determined by it’s weight in gold, silver, or platinum as determined by the market price and the percentage of that price that the establishment pays out. Because you are selling to another business, that also needs to turn a profit, they will only pay a percentage of the full spot price. It is also important to consider that the business you are selling to may not be the end destination for your gold or jewelry. In this case, the business will also only be making a percentage of the market spot value when they melt it down and sell it . Therefore, you will never receive what you originally paid nor will you receive the full spot gold, silver, or platinum price.


Another type of jewelry that you may come across is gold plated or gold filled jewelry. Customers may bring in jewelry that they believe to be, or have been told, is gold. When tested however, the jewelry turns out to be only plated. This means that a thin layer or gold or silver was applied to a less valuable metal such as copper. Gold filled or rolled gold jewelry involves the bonding of a layer of gold to a base metal (usually brass). The quality and value of gold filled jewelry is determined by the FTC. Look for these markings on your jewelry items to indicate gold plated of gold filled jewelry.
• GF- Gold Filled
• GP- Gold Plated
• RGP- Rolled Gold Plated
• RP- Rolled Plated
• Gold Counterfeits: 999, 999 Gold, or 999 Solid Gold
• HE- Heavy Gold Plated
• 1/10 or 1/10 GF - 10k Gold Filled
• 1/20- Gold Filled
• EP- Electroplated

All jewelry must be marked so that the quality of the metal used is known. In North America, jewelry is usually stamped with it’s karat grade. Since pure gold is usually too soft to be used in jewelry making, most gold jewelry contains only a percentage of pure gold. A karat is the measurement of gold present in the metal (14kt gold is only 58.33% pure gold, 24kt gold ranges for 99.0% to 99.9% pure gold). Occasionally, jewelry will be marked with an incorrect karat stamp. As a general rule, always look for the karat stamp along with the manufacturer’s trademark. This shows that the manufacturer stands behind the product and quality. Federal Law in Canada and the United States requires that a manufacturer stamp be present whenever a karat stamp is used. If the jewelry is unmarked it is probably of low value and quality. If you are unsure of the quality of metal, you should bring your jewelry to a local jewelry store or pawn shop and have it tested.

While it is important to have realistic expectations when selling your gold or jewelry, it is also important to be informed. Sell to a company that is reputable and that specializes in the jewelry and gold buying industry. If you are unhappy with your quote, shop around to be sure that you are getting the most compensation possible for your items.

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