Author Topic: Jewelry Buying Tips  (Read 2132 times)


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Jewelry Buying Tips
| January 17, 2017, 04:55:40 PM

There are many advantages to buying jewelry through online auctions. The first advantage is pricing. In many cases, one could never go into any jewelry store and find the bargains that abound online.

In fact, online auctions have changed the way consumers shop for jewelry. Where else can consumers find top graded gems and finished jewelry products for just pennies on the dollar?

There was a time when consumers went to what they thought was the “source” (the New York Diamond District) for their diamond purchases, however, over the years, those who want to keep up with the competition (in New York) have actually opened eBay stores and conduct auction events in order to move their merchandise quickly (especially during non holiday seasons).

Jewelry Pricing: Many consumers can’t understand why there can be such wide swings in gem and jewelry prices. First, the jewelry business is cyclical (seasonal). Some of the best prices on gems, diamonds and finished jewelry can be had during spring and summer months. This is because we (as jewelers) need to bring in the much-needed capital to make large purchases in stock for the holiday season.

This is not to say one can’t find great bargains during the holiday season, as we end up with overstock, duplicate items, last years designs and in some cases, the item just did not appeal to consumers visiting brick and mortar retail jewelers. Online jewelry auctions provides an outlet for retail and wholesale jewelers who need to sell every piece of jewelry and gem they have in stock, in order to go back to their suppliers and Global Jewelry Shows to buy more.

With millions of registered users worldwide, online auction sites allows us to reach the largest possible audience we could ever hope to achieve. There is no doubt, that finished jewelry products and gems find homes (worldwide) through our Live Auction Events due to the expansive reach of internet. In other words, gems and jewelry, which do not sell due to the lack of interest on the part of consumers shopping in brick and mortar establishments, will sell through online auctions due to the vast audience available on the internet.

On another note, there are may consumers who expect to pick up 10+ carat diamond necklaces in Platinum with VS diamonds for a few thousand dollars. This is just not possible in the “real world” let alone in any brick and mortar jewelry retailer (worldwide).

Expectations of getting a bargain on sites such as eBay, run high (sometimes too high) and this is due to a few sellers, which may have to dump an item (once in a while) below wholesale cost. Those super, super bargains are far and few between, however, once someone scoops up a super bargain, they expect to find that same bargain abounding everywhere on eBay. While you’ll never find “super bargains” on a daily basis, you can find bargains from those in the jewelry trade, who just need to “move” merchandise and move a lot of it quickly in order to keep pace with the industry.

Appraisals: Just what is an appraisal? It’s a piece of paper expounding on value (whether that value be determined by Estimated Retail Value or Insurance Replacement Value). It’s also, no doubt, a sales tool, which can or should be used by a prospective buyer to come to some kind of determination of value on a piece of jewelry.

When you buy a piece of jewelry from a jewelry store, they may offer you an appraisal. If the appraisal was performed by a third party appraisal firm then you may have something of value in your hands.

If the appraisal was performed by an “on-site” gemologist employed at the jewelry store, the question of “who’s working on who’s behalf” comes into question.

Buy a piece of jewelry online and go into any jewelry store and just because you did not buy the item in that specific store, you’ll more than likely be told you paid too much.

The Acid Test: Take your favorite piece of jewelry (a piece you have owned forever) and bring it to that local jewelry store and ask how much it’s worth and they’ll give you an estimate. Better yet, get it appraised by their “on-site” gemologist. Then ask them if they’ll buy the piece from you for the quoted estimate. The answer will be a resounding NO! (unless they can grab it from you for pennies on the dollar).

Take the piece to a pawn shop and they’ll offer you some variation of the spot price of gold (if the piece is set in gold) and if the piece has a diamond – what until you hear just how low they can go.

Jewelry is just like any other consumer product. Buy a car, drive it off the showroom floor, bring it back to the dealer a week later to sell it back and see what they offer.

However, jewelry and gems do have one outstanding feature. Insurance companies offer their customers the ability to increase their loss policies (for jewelry) each and every year upwards by 5%!

The biggest buyer of jewelry a few years back was not a national jewelry store chain or any combination thereof -it was a Major Insurance Carrier!

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