Trevanion Auctioneers Jewellery specialist Amelia Tomkinson on avoiding the pitfalls of a rising jewellery market.
As Benjamin Franklin famously noted, ‘In this world, nothing can be said to be certain except death and taxes’, but he could have gone on to add a third certainty – that in an uncertain world, precious metal prices in general, and gold prices in particular, will rise – often to stratospheric heights. This should be great news for those with gold to sell, but it can bring risks too.
The first risk comes from innumerable TV and online adverts encouraging people to send in their gold and jewellery in exchange for the prevailing scrap value. The problem with this is that while the scrap price may be high, it may not reflect the true value of the piece in question. It won’t take into account the age of the piece, or the maker, or even the value of its design or artistry. We often see clients who are considering scrapping a piece of jewellery, but have brought it into us first just to be certain, only to discover that the scrap value of the metal is a small fraction of the true value. This is particularly true of older and antique pieces, but can also be the case with more modern pieces by sought after makers.
The second risk to be aware of comes from the retail end of the jewellery market. As gold prices rise, retail prices will increase to reflect this, but other factors can be at work too, particularly the impact of synthetic gemstones.
Although they were invented in 1954, synthetic diamonds have had very little impact on the jewellery market until the last couple of years, when they’ve become something of a phenomenon. On the face of it, synthetic diamonds offer great value for money, with a two carat princess cut stone retailing for perhaps £2,500, half the price of a period old cut stone. The problem is that stones like these are now emerging on to the auction market, and values are crashing, with that same two carat stone selling for perhaps £500. A Victorian old cut stone on the other hand is likely to hold its value in the same market. The lesson for both buyers and sellers is to make the auction market your first port of call when buying or selling jewellery, and avoid the temptation of ‘great value’ large gemstones on the high street.
We’re always happy to provide no-obligation assessments and valuations of precious metals and jewellery, giving sellers the confidence that they’re not losing out by only taking the scrap value for a piece. We offer one-to-one consultations at our Whitchurch office and hold jewellery valuation days throughout the year. Just call 01948 800202 to book an appointment.
