In many cultures, jewellery is often a sign of sheer luxury and you know certain people are well-off when they are seen at social gatherings with some fine pieces. For others, though, jewellery can hold sentimental value and be passed down through generations.
However, there may come a time when you need to sell your jewellery to cover important expenses such as medical bills or unexpected emergencies.
Why Sell Your Jewellery?
As certain jewellery pieces are made of rare metals such as gold and silver, selling them to a credible buyer willing to pay a good sum may be seen as a logical financial move. Writing for SBS in June 2023, Dina Abdel-Mageed said women of Arab descent who migrate to Australia invest some of their spare cash into gold jewels as a way to build some financial security. Some of these pieces are also presented to women as wedding gifts. One Sydneysider interviewee of Egyptian descent said, however, that the cost-of-living situation in Australia prevented her from saving enough money to buy gold jewels – whatever disposable income she has will be put in gold coins instead.
Tips for Selling Your Jewellery
Here are some tips for selling your jewellery to cover expenses.
Determine the value of your pieces
Identify the jewellery item’s value before putting it up for sale by consulting a professional jewellery appraiser. Keep in mind that the value of your jewellery may be less than what you originally paid for it, especially if it’s been worn or damaged.
Choose the right time to sell
Choosing the right time to sell your jewellery can make a big difference in the price you receive. It’s best to sell your jewellery when the market is strong and demand is high. Consider selling during the holiday season when people are more likely to purchase gifts or during special events such as weddings or graduations.
Multiple sales options
There are different options for selling your jewellery, including selling to a jewellery store, consignment shops, online marketplaces, and private buyers. Each option has its pros and cons, so it’s important to choose the one that suits you best. Selling to a jewellery store may be the quickest option, but you may receive a lower price. Consignment shops may take longer to sell your jewellery, but the trade-off might be a higher price. Online marketplaces offer a wide audience and therefore increased competition. Private buyers may offer the highest price, but it can be difficult to find a trustworthy buyer.
Clean and repair your jewellery
Before selling your jewellery, make sure it’s in the best possible condition. Clean your jewellery and have any necessary repairs made to increase its value. A professional cleaning can make a big difference in the appearance of your jewellery and may lead to a higher selling price.
Managed expectations
It’s important to be realistic with your expectations when selling your jewellery. While you may have paid a high price for your jewellery, you may not receive the same amount or more when selling it. Keep in mind that the value of your jewellery may have depreciated over time and that buyers are looking for a good deal.
Protect yourself during the selling process
When selling your jewellery, it’s important to protect yourself. Take photos of your items and keep a record of the selling price and transaction details. Use a reputable payment method and avoid sending your jewellery before receiving payment. If selling online, be cautious of scams and only use trusted websites.
Some sellers recommend wearing them on certain days and help people take notice of the items, but practise situational awareness to prevent theft.
Sell select pieces
If you have a large jewellery collection, consider selling pieces selectively instead of the entire collection at once. This can help you receive a higher price for each piece and also allow you to keep sentimental pieces.
Keep in mind that selling jewels is not the only option available to cover expenses. You can possibly negotiate payment plans with creditors or to budget your current finances and cut back on non-essentials for the moment. However, if you do decide to sell your jewellery, make sure to do it in a way that works best for you.
In addition to selling jewellery, there are also other ways to make money from your jewellery collection. One option is to rent it out for special events such as weddings or photo shoots. This can be a good way to make some extra money while keeping your jewellery in your possession – but they must be covered by a specific jewellery insurance policy.
Another option is to repurpose your jewellery by turning it into a new piece or selling it as scrap metal. In pooled discussions at Launch Grow Joy, some jewellers said you need clear closeup shots of the jewellery items to give potential buyers a good idea of what they might want to purchase, even more so when you advertise your products on social media.
If you do decide to sell your jewellery, it’s important to be emotionally prepared for the process. Jewellery can hold sentimental value, and it’s natural to feel attached to it. Carefully consider the possibilities. If you’re struggling to let go of certain pieces, consider keeping them and selling other items that you can declutter to cover expenses.
Tax on Selling Jewellery in Australia
Any mineral assets you have on hand, whether by jewellery or otherwise, must be declared to the ATO and there also lies another aspect of selling your jewellery. Under current rules, if you are selling a jewellery piece with a large concentration of gold, you will have to pay the standard CGT rate of 28 per cent. However, that rule doesn’t apply to any jewellery pieces given as a gift by loved ones; you don’t need to declare them in the tax return. Some finance experts claim that you may also lower your CGT liability from a sale if you sold gold jewels but used the proceeds to invest in more gold.
Also, if you bought a batch of jewellery pieces abroad and brought it back to Australia, the ABF states it will be subject to GST and duties if the total value of the entire shipment is at least $1,000. The A New Tax System (Goods and Services Tax) Act 1999 AKA the GST Act doesn’t recognise jewellery pieces made of gold, silver, or platinum as precious metals.
Conclusion
Selling jewellery to pay for your expenses is a difficult but sometimes necessary decision. By following the tips mentioned above, you can ensure that you receive the best possible value for your jewellery and have a smooth selling process. Remember to consider your options carefully and make the decision that works best for your financial situation.
DISCLAIMER: This article is for informational purposes only and is not meant to replace or supersede official financial advice. QUICKLE is not a jewellery sales company and has no relationships with any company or organisation mentioned in the article. Please consult a jewellery appraiser and insurer.
