Exercise caution when selling jewelry to pay down debt
By Sally Herigstad
To Her Credit
Sally Herigstad is a certified public accountant and the author of "Help! I Can't Pay My Bills: Surviving a Financial Crisis" (St. Martin's Press, 2006).
Dear To Her Credit,
We're trying to pay off our credit card balances, and we're
looking for things we can sell to free up some cash. What is the best way to sell loose jewels? We have three
emerald stones that we would like to sell. Is it worth trying to sell things
like that? How can we keep from getting ripped off? -- Cathy
Dear Cathy,
Selling something of value to pay bills or pay off debts is
a great idea. Pam Christian of Yorba Linda, Calif., cashed in her jewelry with a jeweler she has dealt
with for years.
She was happy with the results. Others have not fared as well. Some people sell jewels
only to discover later that they were paid a fraction of what they should have
received. Other people do even worse. One woman left jewels to be examined,
only to have the store deny the next day that they ever saw her before. Others
have left real jewels with a dealer, but received fakes in return!
"Buying from a jeweler is sometimes stressful, but selling to a jeweler is downright scary,"
says Tampa-based gemologist and author Jessica Kendrick. "A seller's first concern is
that they're going to be taken and not get the best price for their gems and
precious items."
You have to do your homework if you want to sell loose
jewels without risk of getting ripped off. Kendrick recommends that you make
sure you know two things before you agree to sell anything:
Know
what you have. Take your stones to at least three jewelers to get an
idea of what they say they are worth. If you want a current independent
appraisal, be prepared to pay for the appraiser's time. You can find an
appraiser at
the American Society of Appraisers website. Remember that the appraised
retail value is much higher than the amount a dealer will pay you. The
dealer must clean and restore the jewels and make a profit. Julie Nash, a
master gemologist appraiser and co-author of "Working With Gemstones:
A Bench Jewelers Guide," says, "If you or I buy a diamond ring
at a retail jeweler for $1,000, a pawn shop, estate dealer or jeweler
will likely offer to buy that item for about $200 to $250."
Why? "Wholesale jewelry is simply a phone call away for a
jeweler."
Know
who you are selling to. This is often the hard part! If you have dealt
with a jeweler, you are fortunate. If not, stay with a well-known company.
Check with the Better Business Bureau as well.
Taking
jewels to a jeweler is like taking your old car to the car dealer. It's easy
and fast, but you won't get the most money that way. Nash recommends another way:
Sell to another private individual. You might even sell it to someone who
has admired the piece when you've worn it. "Or if you hear of a young
couple looking for a diamond, contact them with a possible solution," she
says. "In this case, our theoretical $1,000 piece of jewelry purchased at
retail may sell for $650 or $750. This gives the buyer a deal (a discount of 25
percent to 35 percent off the retail price) and gives you a better return."
You can
find buyers by placing ads on craigslist.org, eBay, your local newspaper or
the bulletin board at work. Of course, you won't advertise the fact that you
have a stash of jewels and give your home address! Nash warns, "Do not
ever meet a potential buyer that you don't know very well at your home. Meet
them at a bank or other public place with security and security cameras."
One more note: Before you part with any old jewelry or loose
stones, make sure you are not selling something that is worth more to you or your
family members than the cash you will get for it. There are always options for
dealing with debts; don't do something rash you may regret later.
Sally Herigstad writes about women and credit every week for CreditCards.com. Herigstad is a writer and finance consultant for MSN Money, a personal finance software product. She is also a member of the Washington Society of Certified Public Accountants and the American Institute of Certified Public Accountants. Her Web site is http://helpicantpaymybills.net. Sally Herigstad lives in Kent, Wash., with her husband Gary. They have two grown children, Valia and Grant.
To Her Credit answers a question about a debt or credit issue from a CreditCards.com reader each week.
Send your question to Sally.
Published: February 20, 2009
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