Is this the best time to sell your jewelry?
At least, you can decide when is the best time to play.
It happens every autumn. With the holiday season approaching, more people are considering selling jewelry they no longer wear or want. It makes sense because estimates say 20-30% of annual retail jewelry sales happen in November and December.
Like all markets, estate jewelry markets change constantly. Two trends are most notable in today’s jewelry market, and both directly impact the estate jewelry market.
One is the historic, all-time high in the price of gold, and the other is the revolution in the diamond market brought about by the breakthrough product category of lab-grown diamonds.
As of this writing (10/30/24), the price of gold is nearly $2,800 per fine ounce and rising. Many observers expect it to break $3,000 before the end of the year. Even accounting for inflation, the price of gold has shattered all previous records.
If you have “ordinary” jewelry, this price surge is a godsend because its intrinsic value has never been higher. If you find a precious metal buyer with fair business practices, it is time to scrap it.
What is “ordinary” jewelry? As judged by quality, style, and condition, most of the new jewelry market is ordinary. Of course, there are exceptions; various factors (a brand name like Tiffany, for instance) can make an item desirable or even collectible. Therefore, it must be carefully examined, piece by piece.
Most owners are pleasantly surprised when they find out how much money their old jewelry brings—the longer ago they bought it, the more pleasantly surprised they are.
Diamonds are a different story. Over the past couple of years, the market has faced a perfect storm: post-COVID economic uncertainty, including the decline in the Chinese economy, and sanctions against the Russian diamond mining giant Alrosa over the war in Ukraine.
But the most dramatic development by far is the tidal wave of lab-grown diamonds washing over the retail diamond market. By one estimate, around half of all diamonds sold as center stones for engagement rings in the U.S. are lab-grown — while their prices continue to sink like (forgive the expression) a stone.
Now may be a better time to buy natural (mined) diamonds than to sell them. Lab-grown stones have hurt the resale market for natural diamonds, especially for weights under two or three carats of average to poor quality. Why buy a mediocre natural stone when you can buy a larger, finer stone for 10-15% of the cost of its natural counterpart?
Nevertheless, I have seen reasonable wholesale offers this year if you own a large, fine diamond—pretty much the same as it’s always been.
In particular, retail and wholesale markets are seeking elongated fancy shapes (those other than round), including marquise, for the first time in many years. At the moment, oval is the most popular shape. Square cuts, especially princess cuts, are much quieter.
Many niche markets of interest exist within the jewelry world, such as Native American and fine costume.
However, two broader ones are jewelry mounted with colored gemstones and antique and vintage jewelry. Sadly, the supply of colored stones in large enough size and fine enough quality is so limited that I rarely see private owners with anything to offer.
I used to see fine estate jewelry in private hands much more often than I do now. It has simply become more rare: passed down to heirs who have sold or remounted it, or just put it away in safes and drawers.
Quality, style, and condition are paramount for all types of estate jewelry. If they are free of significant problems, trade and retail buyers will pay well for them.