Get The Most When Selling Your Jewelry

New cars lose 10 percent of their value during the first month of purchase. Brand new jewelry follows a similar path. Retailers mark up jewelry to cover the item’s production costs. So, the retail price of your jewelry reflects factors such as design, sourcing materials, and overhead operation expenses, such as rent, salaries and marketing.

 

As with every business, jewelers must earn enough to cover their costs while also making a profit. Consequently, the markup on most jewelry is between 50 and 200 percent.

 

Markups are standard throughout all industries. However, the most marked up items include bottled water, with an estimated 2,000 percent markup, and eyeglass frames, with a 1,000 percent markup. Other heavily marked up product categories include: handbags, wine, champagne and designer jeans. For example, designer jeans can cost between $25 and $50 to produce. Yet, a pair of designer jeans often retails at over $250 a pair.

Is My Appraisal Accurate?

Your appraisal can contain useful information about your jewelry, such as a diamond’s size and grade. However, the values listed on these documents also reflect the item’s value after markup. Moreover, it’s important to note that these estimates can be unreliable.

Appraisal Values Can Be Misleading

The appraisal that accompanies new jewelry represents the items’ replacement value at the time of sale. This estimated value is only a valid reflection of the cost of a brand new item. After years of wear, this estimate is likely to decrease from the initial appraisal value. 

Moreover, appraisals that come directly from jewelers may not be accurate. Retailers have a vested interest in appraising your jewelry for more than you paid for the item. Unbiased third-parties, like the Gemological Institute of America (GIA), can provide the most accurate and valid appraisals.

The Diamond Banc Experience

Transparency is an essential part of our business culture, at Diamond Banc. We provide a clear, straight-forward and candid explanation of each offer value. We also provide access to the materials used to reach these offers. Our Market Directors look at every value-adding factor. Nevertheless, aspects such as sourcing materials and overhead expenses are not included in our valuations. As a result, our offers may fall below the appraisal you received when you bought the item.

Diamond Banc pays the most for your fine jewelry. Get started from the comfort of your home with our simple and confidential online form. Within 24 hours, one of our GIA certified jewelry experts will contact you with an initial offer. Reach our Tampa office at 813-367-3372 with any questions or to set up a meeting over the phone.

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