Jewellery is a luxury asset with intrinsic value. Depending on the condition of a piece, the materials it incorporates and the quality of any stones and settings, jewellery can fetch attractive returns.

However, it’s important to be realistic. Make sure you understand different kinds of jewellery valuations. For example, don’t expect to secure a price that matches the value indicated in an insurance appraisal – which doesn’t consider actual demand in second-hand markets.

Also accept that, unfortunately, jewellery is a depreciating asset. As a general rule, it’s appropriate to aim for around 20 to 30 percent of its original retail price. Exceptions apply but only very rarely – for example, if an item of jewellery was previously owned by somebody very famous.

Where to sell your jewellery

You can choose from a number of options, both online and off, when selling jewellery in South Africa.

Online marketplaces

The easiest and most convenient way of selling jewellery is online. Remote marketplaces and auction sites allow you to post information and images of your item with just a few clicks.

This makes it possible to reach a wide audience of potential buyers. At sites like bidorbuy, you also have the choice of selling your jewellery at a fixed price or through an auction.

On the down side, online marketplaces may charge various fees, such as listing fees, enhancement fees and even success fees. Also, online marketplaces may be flooded with too many options for buyers, making it difficult to attract attention to the piece you’re selling.

Auctions houses

Auction houses like Bonhams, Strauss and Co and Stephan Welz regularly auction valuable items, including jewellery.

With several buyers all bidding for the same items, the odds of achieving an inflated price are in your favour. You can also set a reserve price, below which bids won’t be considered.

Live auctions allow potential buyers to assess the quality of pieces. Once a sale has been concluded, the purchaser has immediate access to the goods.

However, all auction houses charge fees that include commission on sales and loss and warranty fees as a percentage of the hammer price.

If items are sold without a reserve, or the payable commission is more than 15 to 20 percent, it’s probably a good time to choose another way of selling of your jewellery.

Pawn shops

Local pawn shops may snap up your jewellery, but you’ll get a much lower price for it. They will usually pay you well below the market rate for gold, silver and precious gemstones.

Pawn shops are usually located in or near city centres. Many advertise online, so it’s worth searching for pawn shops in your area and getting a sense of the business they do before calling in person.

Your local jeweller

Selling your gold and diamond necklace, ring or earrings to your local jeweller is one of the safest ways of selling jewellery. You’re also likely to be offered a somewhat better price than you’d get from a local pawn shop.

A reputable jeweller will assess the item and pay you a fair price based on its age, condition and quality. As they typically buy second hand pieces for the purposes of recycling the stones and melting down the settings, you’ll usually be offered about a third of the original purchase price.

Don’t sell: use your jewellery as security for a loan

At Lamna, we offer fast, discreet loans against the value of a wide range of personal assets, including valuable items of jewellery. In other words, you can use jewellery you own as collateral for a loan.

Once you’ve repaid the loan with the agreed interest, the asset is returned to you – so you can get the funds you need without having to sell your jewellery in SA.

For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.