Understanding pricing policy when selling your Gold

You may have heard the story of someone buying a brand new car from a dealer and then driving it in large quantities. When the car is sold second-hand down the road, it is always worth a lot less than what was initially paid for it at the dealership.

Buying jewelry and selling jobs in a similar way. The value often devalues ​​over time, and the initially paid retail price is inflated to cover business expenses: employee salaries, rent for the building, marketing, electricity, etc.

As in any business, jewelery retailers need to cover their costs, as well as make a profit. Therefore, their pricing policy usually falls in the range of being double or triple the wholesale price.

Retail profit margins are seen everywhere, with even more dramatic margins in the electronics and fashion industries. For example, someone can buy a pair of $ 50 jeans that cost $ 8 to do.

So, as you can see, the margins for excellent jewelry are quite reasonable.

Importance of estimates
By obtaining an estimate made for your jewels, the purpose of the estimate needs to be distinguished in advance and discussed with the estimator. The reason for this is that different types of estimates have different values, and if the wrong type of estimate / value is assigned, it probably will not support as a legal document.

Here is a failure of any value and types of esteem that affect jewelry:

Replacement value per minute
Defined as the highest monetary quantity that would be required to replace a property with another of similar age, quality, origin, appearance, origin and condition within a reasonable time period in a suitable and relative market.

Fair market value
The price at which the property would change hands between a willing buyer and a willing seller, none that is under any constraint to buy or sell and both that have a reasonable knowledge of related facts.

Insurance estimate
By far the most common estimate made for jewelry is the Insurance Estimate, which often first comes into play by buying an engagement ring.

With the purchase of an article of sentimental, high value, it is essential to make an insurance estimate so that your insurance company will cover problems that may arrive over time with a ring.

Essentially, the value must be similar to replacing jewelry with a similar piece of jewelry in a relative market sold for the retail price.

This type of estimate uses the Replacement Value Per Minute. Retail stores sometimes provide insurance estimates, or you can contact the National Association of Jewelers for a recommended estimator near you.

Resale estimate
By switching to higher power jewelry or trying to make extra cash, a Resale Estimate determines the Fair Market value of the jewelry for the purposes of evaluating the jewelry with the intention resold.

The jewelry can then be re-sold in the trade or can be sold directly to an end consumer.

Property estimate
The mandate of IRS regulations that Fair Market Value is used to evaluate objects owned by a deceased person and an estimate of all their assets is made for distribution and tax purposes.

Estimation of family division
In a divorce, on the death of a family member, or in property planning, a family division estimate can be created, which lists all the real estate, assigning the Fair Value to the exam date.

Jewelry as a guarantee
Although banks do not usually enjoy jewels so collateral for a loan, there are companies that do offer loans for such collateral jewels, such as Cash for Gold.

Often, these specialty companies include a complimentary estimate as part of their process.

Charitable contribution or gift
This type of estimate is used by donating valuable jewels to a tax-exempt US graduate organization, such as a university or a museum, and Fair Market Value is used in estimating .

Damage or loss of value estimate
An estimate used by adjusters, insurance companies or the insured party, this type of estimate is used to evaluate a lost, stolen, damaged, or destroyed item of personal property.

A value is established for the article in its original condition, as well as its present value in its present condition.

What estimate should it include
In general, each estimate must include a description of the jewels: weights, grades, measurements, stones, metal type, treatments, etc. It must verify the credentials of the estimator and list the relative value for the type of estimate.

Pricing policy estimates vary widely, and estimators can charge a constant rate or an hourly rate, usually within the limits of $ 50 – $ 300, based on credentials and experience.

Certainly check that your estimator has Omissions and Mistakes as well, which will protect the estimator in case there is any mistake made on the estimate, and which will ensure that it is properly compensated if there is a mistake.

Reality of value
The pricing policy of selling your jewelry usually comes under the jurisdiction of needing a Resale Estimate, as mentioned above. The idea of ​​Fair Market Value may seem little summarized, so let’s put this example in more manageable terms.

Let’s assume that Joe bought a diamond ring for $ 5,000. Before sales tax the price is $ 4,500. Reselling the ring to a trustworthy contact / trading company would generally introduce a price of $ 1,500 to $ 2,500. Why is the resale price so much lower?

As mentioned before, a jewelry retailer has to pay for wages, maintenance on a building, furniture, security cameras, marketing, water and electricity, among other things, as all entrepreneurs do.

These overheads increase the price of the diamond ring, but are not linked to the value of the diamond ring without additional associated costs.

The finding of an authenticated gemologist (FGA / GG). and the appraiser for evaluating your jewelry, or working with a company that has them in staff, will help you on the journey to recovery of as much as what you originally paid for your jewelry as possible.

Do your homework and investigate your jewelry, discovering what the jewels within a similar scope sell to online, as well as between trustworthy individuals, such as your local merchant or jeweler.

An alternative option for sale works with an established auction house, such as Christie’s or Sotheby’s (for high value items), selling through an online platform like Craigslist , or selling directly to a friend.

Author: Olga Gonzalez is an authenticated gemologist (FGA) and Founder / CEO of Stone PR , a communications agency located in NEW YORK that specializes in fine jewelry trading, and has been working in business since 2005. Olga was writing for a variety of trade publications since 2008; also has the experience of esteem and is the United States Ambassador for the Gemmological Association of Great Britain .

How to sell your gold and diamond jewelry

The sale of your gold and diamonds separately
If you decide to remove the diamonds in your jewelry from gold and sell them separately, the price you will get for them will reflect their value as materials.

It is, you will not get any price premium based on the value of the project, the brand or the age of the jewelry.

Gold sale
You can sell the gold pieces of your piece to gold traders, who will buy the metal with the intention of merging it or reselling it at a refinery.

In such a case, the value of your gold can be loosely estimated by multiplying the weight of pure gold in the article by the market price of the metal per unit of weight.

As an example, if your gold piece is 14 carats, then it contains 58.3% pure gold (14K divided into 24K); if the piece weighs 10 ounces of troy (1 ounce of troy = 31.1 grams), then it contains 5.83 ounces of troy pure gold (10 x 58.3%).

5.83 multiplication from the current gold price per troy ounce will tell you how much your gold is worth.

However, keep in mind that the price the buyer will offer to your will usually be lower than your estimate as the dealer also needs to make a profit when your gold is resold.

This is why it is good to sell your gold to a trader who is closest to the end buyer so that he can get a better price.

Sale of diamonds
Once your diamonds are taken out of your gold jewelry, you can get them from a jeweler or diamond dealer to sell them. The price they will offer will depend on the characteristics of the diamonds as cut, blush, clarity and weight.

See: Selection of diamonds cleaned by the eye carefully examined for quality
However, you don’t have to wait to get the same price as the one you see in the store. Very often, you will actually get less than 50% of the price per minute because diamond buyers can purchase the same stones from their most suppliers at lower wholesale prices.

Not all jewelers buy diamonds, though. Your best choice is to ask around and compare the prices they offer.

You can also check out several diamond dealers and see how their offerings are comparable to those arrived from jewelry stores.

If it has no documents describing the quality characteristics of your diamonds, it is a good idea to value or graduate from a gem laboratory like that of the GIA (Gemological Institute of America).

This would provide some verification of the quality of your stones and help you in negotiating a better price.

The sale of your gold and diamonds together
Your second option is to sell your diamonds and gold together, as a complete piece of jewelry. This is recommended if your jewelry has a high value based on its antiquity, exceptional design, brand, etc.

In such a case, you may be able to get a higher price for the item if you sell the stones and metal separately.

The sale of your jewelry to merchants
Traders and refiners usually buy jewelry to knock it down, melt it or resell the metals and sell the stones.

Those buyers will not give you a price that is higher than what the materials of your jewelry are worth. It is, you will not get any extra money for the project or the age of your jewelry.

The sale of gold and diamonds to jewelry stores
Not all jewelers buy old jewelry for cash. Some jewelry stores can buy your items as complete pieces, but if they will give you a substantially better price than the cost of gold and diamonds as the materials are not certain and depend on the item.

Many jewelers will only buy your pieces with the intention of cutting them down and using the metal and stones, and these buyers will not give you a much higher price than what the merchants would offer you.

You can always try to sell your jewelry at auction and see if they will get a better price than what the stores or dealers offer you. Online auction sites come in handy in such cases.

Just make sure your jewelry is clean and polished, and keep in mind that if you value it from a professional, the estimate document will help you justify the price you are asking for.

Cash for Gold – Process Explained

Cash for Gold – In a Nutshell

Gold is definitely a precious metal that people used for money for centuries now. These days, it’s still used as a safe haven whenever people have confidence in paper currencies being used. Learning how you can benefit from cash for gold opportunity is never a bad idea, especially if you have scrap gold there.

The first thing that you must know is that gold doesn’t lose its intrinsic value like paper currency and some commodities so people tend using it when they like to hedge against inflation. It’s when currency’s buying power is eroded so a person is forced to pay more services and goods. When it happens, the best way a person may reduce the risk of paper money becoming worthless is through buying assets like gold that have held its purchasing power traditionally during financial downturns you’re currently experiencing.

Now that you know the reason why gold is much appealing to the investors, it’s the best time to know the benefits you can enjoy in cash for gold industry:

Gives businesses with a way to offer liquidity without taking risks since they’re playing for the raw material only.

Helps average consumers access funds without the need to take out loans, the gold will be turned into cash right away.

Offers consumers with the chance to get cash for unwanted gold that doesn’t have any commercial value.

Ways to Benefit from Cash for Gold Sector

The gold’s price changes from day to day so it isn’t the kind of industry for people who like to speculate on the gold prices. At the most basic level, this business will enable a business purchase scrap gold and give sellers cash for it. The business isn’t interested in how gold jewelry looks, they just like the purest amount of gold possible in order for them to melt it down and sell this in the open market once they prices are favorable. Since the person sells the gold typically requires quick cash and doesn’t need gold anymore.

Things to Remember

What business owner requires is ensuring they have enough cash on hand to buy the gold. Before a cash for gold company can purchase gold, there are some important questions that need to be addressed starting with the precious metal’s purity.

There are several devices that may rate the gold’s purity and when you have the purity established, you have to weigh it and come up with the price. At any moment, the gold’s price fluctuates so what you’ll have to do is looking at the gold’s market price when you’re making an offer to clients.

Spot price is the term referred to the market price for what it could cost for an ounce of gold. To maximize the profits, you will have to offer customers a low price, the difference between spot price and what customers accept will impact the profits of a cash for gold business. What most businesses will do is holding on to the gold until the prices increase dramatically before selling it in the open market.