Our tips for selling gold and diamond jewellery will help you get the best price for your items.
Selling jewellery is a quick way to make money but it’s easy to get taken advantage of.
Where to sell gold and diamond jewellery in South Africa
You can sell your jewellery privately via an online marketplace such as Gumtree or you can sell pieces to a jeweller or gold dealer.
There are numerous “cash for gold” dealers in most cities and towns.
To sell privately, you need to know the value of your jewellery so you can set a fair and realistic price.
This means getting the piece appraised.
Selling to a dealer eliminates this step as he or she can appraise it for you.
That said, a dealer won’t give you the highest price because he or she will sell the piece on with a mark-up.
Alternatively, there are loan options that use your valuables as collateral.
This way you keep your gold or diamond jewellery once the loan is repaid.
Tips to ensure you get a fair price
Consider these tips before going ahead with a sale.
If in doubt, don’t rush into a sale.
Wait until you’re sure.
Assets like gold and diamond jewellery aren’t easy to reacquire once they’ve been sold.
Consider the timing
Keep an eye on the markets.
Gold prices, in particular, fluctuate based on many factors.
It’s hard to predict but try to sell when prices of gold, silver or diamonds are high and unlikely to go higher soon.
Know the value of your jewellery
In order to set the right price when selling, you need to know the weight and purity of your items.
To be sure, get them appraised.
Items with their original boxes and certificates fetch higher prices.
Consider an auction
Auctions are an option for more valuable items, especially pieces with intrinsic value and not just monetary worth.
An auction house will advise you based on the value and history of your jewellery.
If you plan to sell to a dealer, only use reputable dealers.
Many dealers will take advantage of you so they can sell your items for a ripe profit.
Don’t take the first valuation as accurate. Get a second opinion.
Visit multiple dealers and get three or more quotes on your items.
You’ll get a feel for the market and see if your jewellery is worth what you’d thought.
No matter how you sell your jewellery, be prepared to negotiate.
Even if you set a fair price, investors and dealers will make you a lower offer.
If you feel an offer is too low, refuse it or make a counteroffer.
Selling online is convenient and you set the price.
If you’re sure of the value of your piece and can prove it with a certificate or appraisal, there’s no reason not to sell your items to a collector or investor.
That said, be cautious with online sales.
Scams are rife and high-value items are more likely to be targeted.
Never hand over an item without receiving payment in full.
Proof of payment on a bank transfer is not enough either.
If in doubt, insist on cash.
Consider selling for scrap value
Lower value items will take longer to sell and may not attract the same interest.
If you’re determined to sell, sell gold items as scrap at a “cash for gold” dealer.
Scrap gold is melted down to be repurposed, so you won’t get as much for it but the sale will be quicker.
Using gold and diamond jewellery to get an asset-based loan
Asset-based loans use a valuable item such as gold and diamond jewellery as collateral instead of your income or credit score.
At lamna, we can offer you a quick, short-term loan based on the value of your gold or diamond jewellery.
We take temporary possession of your jewellery and return it to you once the loan is repaid.
Our asset-based loans have many advantages compared to traditional bank loans:
- they’re quick – funds are transferred to your account usually within 24 hours
- they’re discreet – information isn’t shared with third parties
- they’re straightforward – the application process is simple and can be done online
- they don’t require an income – the loan is based on the value of your asset
- they’re NCR compliant – our loans and interest rates are based on the NCR guidelines
- they don’t affect your credit score – your credit score is not needed and it isn’t adjusted
- they’re low risk – your ownership is only affected if the loan can’t be repaid.
At lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork.
Client borrows R10,000 for 90 days.
|Loan Amount||Repay Terms||Monthly Repayment||Total Repayment||Initiation Fee||Monthly Fee (Interest + Service charge)||APR|
|R10 000||3 months||R568.40||R12 902.20||R1 197||R560||60%|
What to know if you’re considering selling gold jewellery, including how to calculate its scrap value and some alternatives for securing funds.read more
Gold is usually considered a stable investment but is now a good time to buy?read more
Now Is Not the Time to Sell: Why Collateral Loans on Fine Jewellery and Diamonds Are a Better Option
Why collateral loans on fine jewellery and diamonds are a good way to access funds during the COVID-19 crisis.read more