Gold Prices Are High. Is Now a Good Time to Sell Gold Jewelry?
Your jewelry can be more than an aesthetic statement; it can also be a valuable asset — especially if it’s gold. While we think that gold jewelry will always be timeless, its enduring qualities extend far beyond style or aesthetics. Gold is an incredibly valuable precious metal, and one that typically holds its value over time, making it a worthy investment now and in the future.
Gold prices have reached all-time highs in the market, and now may be a good time to assess the gold you have on hand at home and the gold you plan to invest in. Here’s everything you need to understand about gold as it relates to your jewelry collection.
Why Are Gold Prices at an All-Time High?
Gold shines in times of market volatility and is often considered a secure and stable investment during economic uncertainty because it typically holds its value over time. Today, with numerous global conflicts, widespread uncertainty, and volatile political and economic climates, more investors are choosing to invest in gold — driving the price and value of gold up to record highs.
How Do Gold Prices Impact the Jewelry Market?
Naturally, the high price of gold impacts the jewelry market, increasing the value of existing gold jewelry and, in turn, driving up the price of gold jewelry.
Is One Type of Gold Jewelry More Valuable Than Others?
The value of a piece of gold jewelry is determined more by its purity than by the type of gold, like white gold, yellow gold, or rose gold. If a piece of gold jewelry has more gold content than other alloys, which are often mixed into gold to enhance its durability, its value will be greater. Gold’s purity is measured by karats, and the higher the karat measurement, the purer the gold. (For example, 24 karat gold is 100% pure gold.)
White gold, yellow gold, and rose gold, when they have the same karat value, have equal amounts of gold. The variation in color is determined by the different types of alloys mixed into them.
One excellent example of how the price of gold impacts the jewelry market is revealed when comparing white gold jewelry with platinum jewelry. For many years, white gold has been seen as a less expensive alternative to platinum jewelry that yields the same aesthetic look. However, as the price of gold has increased, white gold jewelry may not be that much more cost-effective than platinum. A platinum ring, which typically has higher purity than a white gold ring, may be the same price as gold.
Additionally, rhodium plating is typically used in the creation of silver, gold, and platinum jewelry to enhance its appearance and durability. However, since rhodium plating is also made of a precious metal, its price is also up — and this increases even further the cost of jewelry.
Is Now a Good Time to Sell Unused Gold Jewelry?
Fashion trends, aesthetic preferences, and lifestyles change, and it’s not uncommon to have a few pieces of jewelry on hand that you’re just not wearing. With the price of gold at record rates, it may be a good time to sell your unused gold jewelry — or to have a piece repurposed to maximize the value of what you already have on hand.
The Resale Value of Gold
The resale value of gold will fluctuate based on the price of gold on the market, so it’s difficult to provide an exact equation to determine its value. However, keep in mind that the purity of the gold — that karat measurement — will correlate to its value. Inspect your jewelry closely and look for a marker indicating the karat measurement to determine if you have 10k, 14k, 18k, or 24k (pure gold) on hand.
In most cases, a jeweler will calculate the value of the gold based on its weight, the purity of the gold, and the gold spot price.
What Is the Process for Reselling Gold Jewelry?
Reselling gold jewelry is simple. Determine which pieces you no longer want to keep, and bring them to a jeweler. The jeweler will then weigh the gold, assess any gemstones that may be in the pieces, and propose a price for your jewelry.
Should You Sell Your Unused Gold Jewelry or Repurpose It?
If you’re watching the price of gold skyrocket, you may be considering holding on to the gold you already have in your jewelry box. While there’s no harm in keeping it in its original form, one other way to make the most of your gold jewelry is to repurpose it with a new design.
At JPratt Designs, we can melt down your old gold jewelry and create custom fine jewelry that better fits your style and your life. We use lost-wax casting to create intricate, deeply personal designs that can breathe new life into previously unloved jewelry.
The market for gold is strong — and experts predict the value of gold will only increase. If you’ve been considering selling your gold, it’s a great time to take on that task. But if you’re sentimentally attached to your gold jewelry, even if the style no longer suits you, consider a new, custom design. Contact us today to learn more about our process, or head into our store, and we can talk you through your options.