1. Realize you won't break even on your purchase, especially if it's a custom made setting.
2. Avoid traditional jewellery shops and pawn shops.
3. Go through reputable jewellers for the best prices on second hand diamonds and ring settings. You can sell the gold or platinum for scrap metal.
Not only can you sell your diamond, but you can sell your setting as well. If you go through reputable jewellers, they'll handle the resale of your diamond and your setting.
Even if you have a custom made ring, your setting is only worth the scrap gold price. A lot of labor and skill goes into designing and creating settings, which, in turn, jacks up the price. So, even if you paid $2,500 for a unique setting, it will still be melted down to its scrap gold. Why is that? Almost everyone wants a specific, custom design. Rather than reusing your ring, a buyer would prefer to have their own design created.
A custom setting ring that costs $2,500 will be more expensive than a setting that's mass produced. Because it's a unique piece of jewellery and there is a large markup, you may receive $300 for the scrap gold. Although it's a significant loss, at least you are able to recover some of the investment.
If your ring is not custom designed, a ring that costs $600, you will not lose as much of the original investment. You could perhaps reap $200 for the scrap gold, which is a much higher percentage than the custom ring examples above. Because custom work and intricate designs aren't involved, the original markup and price are not as high. The loss percentage isn't as bad, because the design is simple and more widely produced.
While it's a financial loss to sell your ring for scrap gold, at least you are able to recuperate some of the cost. Instead of letting your old ring sit in a drawer collecting dust, you can secure some cash for the jewellery.
What Price To Expect
In general, shops will pay approximately 50 cents for every dollar of scrap gold value. If the melted down value is $1,000, for example, a shop will offer to buy the ring from you for approximately $500. Some reputable jewellers, however, offer 75 cents for every dollar of scrap value. So, you'd receive $750 for a $1,000 amount of gold, instead of $500.
If you have an emotional attachment to your setting, you might want to consider repurposing the ring with a new stone. You could give it as a gift to a family member or make it into a necklace. Some choose to place a cubic zirconium (CZ) in the ring, a stone which can be bought wholesale for $20-50. If you are in need of cash or don't want others to know you sold your diamond, a cubic zirconium is a great way to preserve your ring.
Types Of Gold
The resale price of all gold (yellow, white and rose) are the same. All rings are melted down into a bar of gold, so the setting is simply worth its weight in gold. On average, platinum is resold for the same price as gold. Silver, on the other hand, sells for much less. The calculations are simple: the metal is priced per gram, so the number of grams in the ring will determine the scrap value.
The only exceptions (which are very rare) are signed pieces from distinguished designers. Again, these exceptions are rare and are only granted for the most prestigious and venerable designer rings. Instead of melting these rings, Some reputable retailers resells the actual setting. Their team handles the retail process so you don't need to spend time finding a buyer or pricing your designer ring. The resale process takes time but you can expect more cash than you would for the scrap metal. It's important to note that custom-made jewellery from traditional shops and artists do not fall into this category.
Where To Sell
The price you'll get for your gold differs significantly depending on where you resell it. Pawn shops and traditional jewellery shops usually pay 50% of the value of the gold. So for a ring with a scrap value of $400, expect to receive $200. If you go through a professional, reputable resale retailer, you will receive approximately 50% more than in a jewellery shop or pawn shop. Reputable resale retailers pay 75% of the value of the scrap gold. For a ring with a scrap value of $400, you would receive $300 (compared with the $200 from a jewellery shop).
It's impossible to time the market for gold prices, just like it's impossible to accurately time the stock market. The price of gold doesn't fluctuate significantly, so there is no benefit to waiting until the market rises. If you're not sure how much your ring is worth, send or take the information (photos and certificates) to reputable jewellers for an appraisal. This will help you decide if you'd like to sell your ring or not.
Many people worldwide have hundreds of dollars of gold in their dressers and storage. Gold jewellery, including necklaces and bracelets, often go unworn for decades. If you're looking to make extra money and you own jewellery that's not being worn, consider reselling it for scrap. Consider looking through your drawers and jewellery boxes for pieces you can exchange for cash.