Selling Gold Jewelry - the Buyer's Expertise Counts
PATTI GEOLAT - October 29, 2009 -- I read the recent news that a class action suit was filed against Cash4Gold, a well-marketed, long-distance buyer of pre-owned gold jewelry. The suit alleges that Cash4Gold purposely undervalued gold jewelry or made it impossible for customers dissatisfied with Cash4Gold's valuation of their jewelry to reject the offer and have their jewelry returned to them.
I have no comment on the specific allegations in this case, and Cash4Gold has denied them in the jewelry trade press.
But I do know a lot about consumers who try to sell jewelry and gemstones. I've dealt with them for years in my appraisal business. They often come back to complain to me, after they have attempted to sell the items I had appraised. They tell tales that raise the hairs on the back of my neck. I want jewelry owners to feel good about their purchases, both when they buy, as well as it when it comes time to part with their precious pieces. Unfortunately, too many consumers end up feeling confused, angry and taken for a ride instead.
It's a pity, because if both sellers and buyers of jewelry and gemstones followed some basic, common sense rules, backed up by facts and ethics, we'd all be a lot happier, and the business of buying and selling pre-owned jewelry could boom. A new generation of consumers is getting very comfortable buying, selling and trading all kinds of personal property, from electronics and designer clothes to handbags and jewelry. They need to be reassured that there's an above-board way to complete these transactions.
But first, let me be clear: I know members of the jewelry trade who purchase jewelry ethically. I deal with them regularly as part of my other business - in which I broker the sale of pre-owned fine jewelry between willing buyers and sellers through my Private Treaty Auction™ system. But there are individuals and businesses that are either ignorant about the factors that go into valuing fine jewelry or are only too happy to exploit sellers who might not understand those factors. Finding a well-informed, professional and ethical buyer should be the goal of every consumer considering the disposition of fine jewelry.
Remember, you're looking for someone who can determine not only the price of gold or the amount of gold in a piece of jewelry - but also whether your pieces might garner more dollars being sold as estate jewelry. So here are some guidelines to consider.
- Credentials. Does the buyer you're considering have the expertise to truly evaluate jewelry? Accreditation as an expert in the gems and jewelry field by a respected appraisal organization, such as the American Society of Appraisers or the National Association of Jewelry Appraisers, can help. It means that your buyer is experienced in looking at a piece of jewelry from all perspectives - not just its value as scrap.
- Estate Jewelry Experience. Does the buyer regularly take in pre-owned jewelry for resale? Those with such experience know the value of estate jewelry and may be able to garner a better price for your pieces by reselling them rather than melting them down. He or she will be able to identify signed pieces, or those made by a popular designer. Conversely, an experienced buyer of pre-owned jewelry will also be able to assure you when a piece has no further intrinsic value beyond its metal content.
- Honesty. Honest retailers acknowledge if they do not regularly trade in pre-owned or estate goods. They are also happy to refer their clients to a professional who is knowledgeable. Or sometimes a jeweler does not have the cash flow to buy an item at a fair price, but will turn over a client to another dealer who does.
- Pricing Transparency. Most folks do not fully understand that there's usually a vast difference between the price you pay in a store to buy a piece of jewelry, versus the price at which a professional buyer of pre-owned jewelry would be willing to purchase an item from you. Ask your prospective buyer if he or she can value your jewelry in two ways: 1.) the price at which he or she believes it could sell to the public, and 2.) the price at which he or she would buy it from you. Once consumers understand the buyer's need to make a profit from the transaction, as well as pricing in the pre-owned jewelry market, the numbers become transparent.
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Learn more about the Geolat & Associates appraisal process. Whether you stay with your or your client's property while it is appraised, or leave it with us, after appropriate insurance and release forms are finalized, the Geolat appraisal process ensures you of accurate and professional results.
Learn more about Geolat Mondial brokerage and bidding processes, for the sale of your or your clients' fine jewelry, gemstones and timepieces. After signing appropriate valuation, insurance and release forms, we will use our trademarked Geolat Private Treaty Auction to garner the highest prices possible for your valuables. 
Patti Geolat, founder & CEO of Geolat Companies, is a widely known authority on appraisal, brokerage & sale of fine jewelry. Her clientele includes many of the top jewelry houses globally, as well an extensive network of private & industry collectors. She has a reputation for excellence, confidentiality & ethics in the private world of jewelry and gemstones, giving her access at the highest levels. 