BUYING & SELLING TIPS

Be realistic when selling your jewelry

If you are thinking of selling some of those unworn pieces in your jewelry box, it’s best to proceed with realistic expectations.

According to a market review of magnificent jewels prepared for Sotheby’s by the Art Market Monitor in November, the sale of gems and jewelry at both Sotheby’s and Christie’s this fall reflected the climate of the global economic crisis. But it also revealed an underlying strength. Collectors are still acquiring pieces with pearls and provenance, and period items from famous jewelry houses. These all continue to attract aggressive bidders and prices have not retreated.

In fact several price records have been set this fall. At Christie’s Geneva auction, a 42.28 carat Kashmir sapphire sold for $3.5 million U.S., or $82,500 per carat. On Dec. 10, The Wittelsbach Diamond, the second largest blue diamond in the world, smashed two world records at Christie’s London.

The 35.56 carat stone with clarity VS2 was sold for £16,393,250 or $24,311,190. The previous record for a diamond was $16.5 million for a 100 carat diamond in Geneva in 1995. The Wittelsbach sale also sets a record for a piece of jewelry sold at auction.

Headlines such as these can be misleading. While rare jewels with exceptional provenance can rise in value, most of what is in our jewelry boxes won’t. Here are some points to bear in mind when you go to sell, from Cynthia Sliwa, co-author of Jewelry Savvy.

* Most jewelry is ordinary and really only has scrap value. Unless there is a significant stone involved, the piece is probably only worth just the gold. Determining whether a stone is significant or not requires professional advice. A stunning piece of quartz could be significant while a deeply flawed emerald may not be.

* Monitor the value of gold at www.goldprice.com as it varies from day to day. But if gold is $800 an ounce, don’t think an ounce of gold jewelry translates to an $800 cheque. Most gold jewelry is not solid 24 kt gold. Gold that is 18 kt, 14 kt, and 10 kt is mixed with other metals. A jeweler offering money for scrap will only pay for the gold content. The dollar value of a thin gold 10 kt chain is negligible.

* Forget what you paid for a piece initially. That is no indicator of current value. The selling price would have included the retailer’s markup and possibly a premium for a prestige brand or hallmark, all of which goes well beyond the inherent value of the metal and gemstone. However, the premium you paid for a prestige brand or hallmark should provide some benefit when you go to sell.

* The original selling price of a piece would also have included the cost of the design and craftsmanship of the piece. Design value will be irrelevant if you are selling a piece for scrap metal. However, if you have a style which is in high demand, such as Art Deco, that could help make a piece more saleable. Conversely, an unappealing design could limit salability.