So you have decided it might be time to part with some of your old gold jewellery, many people ponder whether to sell to a gold buyer or try their luck at an auction. We all want to achieve the maximum price when we come to sell our valuables. Both these options have their own separate advantages and disadvantages, and being clear on these pro’s and con’s can help you make an informed decision when coming to sell old jewellery.
Our article will deep dive into the the auction process in the UK, comparing the positives and negatives of selling gold at a traditional auction, and online auction websites such as eBay.
Selling gold at auction involves a few important steps. The first step is starting with the valuation of your gold jewellery which is usually carried out by an in-house valuer. The jewellery appraiser will value your items based on their weight, gold purity (carat), design, quality of construction, and historical value. Your piece may be valued higher if its deemed on trend or currently fashionable. This appraisal process is crucial as it determines the initial estimate, which can help set your expectations regarding the possible selling price. It’s important to note that this valuation is an estimate and the piece can often sell for higher or lower than this figure.
Once your jewellery has been appraised by a trained valuer, your item will be prepared for catalogue feature. This involves photographing and describing the piece in detail to attract potential buyers. One of the benefits of this process, is that the photography and description will be prepared by the auction house. The catalogue is then distributed to potential buyers and collectors who may have an interest in your type of jewellery. The quality of the catalogue entry can significantly influence the interest level and bidding activity during the auction. You want to choose a well known and popular auctioneer, who have a large client list to distribute their catalogue to. This will give your jewellery maximum exposure to many potential buyers prior to the auction day.
On the scheduled day of the auction your jewellery will be featured in an auction event. Auction houses will inform their sellers of the date well in advance, so you will be able to make time to follow the auction live on the day. You usually have two options when it comes to watching the bidding action. If the bidding room is open to the public, you will be able to watch the action in person. If the auction room is closed off to the public, there is usually a live stream you can watch online. Your gold jewellery will be on display for potential buyers to inspect. This allows all potential buyers to asses your jewellery’s condition and visual appearance, which will influence their maximum potential bid on the day.
During the auction, bidders will compete for your item. The auctioneer starts the bidding at a pre-determined opening bid, that is usually below the estimate to encourage early bids. Participants place their bids on your jewellery either in person, over the phone, or online. The highest bid above the reserve price, if one is set, wins the item. The excitement of live bidding can often drive prices higher than expected when bidders become competitive with each other, especially if there is significant interest in your gold.
If your jewellery sells, the auction house will complete the sale to the highest bidder. After deducting their commission and any other fees, the remaining proceeds are paid to you. It’s important to understand that the auction house’s commission on jewellery sales can range from 15% to 25% of the final sale price, which can significantly affect your net profit.
Potential for higher prices: The keyword here is ‘potential’. Auctions can drive prices up beyond reasonable valuations, especially if your jewellery is highly desirable. Competition in the auction room amongst bidders can result in a potentially higher sale price. Taking this as a reason for selling your jewellery via auction is much like rolling the dice, this is a gamble to take in the hope there is a bidding frenzy.
Exposure to serious buyers: Auction houses do attract serious collectors, investors and some trade jewellery buyers. Having your gold jewellery in front of the right buyer pool can lead to your item selling for a fair price. This will be largely dependant on the quality of the auction house you choose.
Expertise: If you choose specialist auction to sell your jewellery, you will likely have access to highly trained and knowledgeable staff who can present your rings, bracelets, necklaces, etc. in the best light. They will have the knowledge to describe the era, style and design features together with shooting professional images.
Uncertainty: I There is no guarantee that your item will sell at auction, especially if you have a reserve in place. If it does sell there is a possibility it may reach well below the price you expected. The price dictated all depends on the condition of the auction room on the day of the sale. A lot of it does come down to luck, with the right collection of buyers in the room. Many people do not wish to take this gamble. There can also be fees to pay if your item does not sell and is returned to you.
Fees and Commissions: Auction houses generate their income with significant fees, often ranging from 15% to 25% of the final sale price. These fees can substantially your net takings, and if your item sold well below estimate this can leave you feeling pretty disappoint.
Time-Consuming: From the point of initial contact with the auction house, to you receiving the proceeds of sale, the whole process can be lengthy. It can take several weeks or even months for you to receive payment.
Complexity of the process: Understanding the complex processes involved in taking your item to auction can be difficult for people to grasp, especially if its your first time and you are unfamiliar with it. You must have a thorough understanding of the terms, conditions and the fee structures involved. Every auction house has a different procedure with different terms so it’s important to request these and read through carefully.
Selling privately via online auction sites, has been a popular option since the inception of websites such as eBay. Unlike selling in a traditional auction, selling on eBay requires you to do the preparation and listing work yourself. Selling old jewellery on eBay involves creating a listing for your item, including photos, descriptions, and an optional reserve price. Your listing is then published to the eBay website, and made available to eBay’s vast user base. You can set your auction listing to close over a selection of time frames, which gives potential bidders chance to be exposed to your listing. The highest bid at the end of this defined period wins the item, and the transaction is completed through the platform’s payment system.
Access to a huge buyer pool: The eBay website receives a lot of traffic globally. This will definitely increase your chances of finding a buyer or multiple potential buyers.
Control Over Listings: When listing jewellery on eBay you have full control over your listing start price, reserve prices, descriptions, titles and duration of the auction.
Cost-Effective: Generally speaking listing and final value fees on eBay are less than you would pay at a traditional auction house. However, fees charged by eBay can change frequently and its important you check the latest fee structure via their website for the category you are selling in. As of 2024 the fee structure for selling jewellery on eBay is below:
14.9% of the total amount of the sale up to £1,000 (calculated per item) and 4% of the total amount of the sale above £1,000, plus a fixed charge of 30p per order.
Market Saturation: eBay is flooded with listings, which may mean there are multiple similar products to what you are selling available. There may be other sellers who are willing to sell their item much cheaper than you are. With multiple similar items available it can make it difficult for your jewellery to stand out especially if you are not experienced in taking images or writing descriptions. This can lead to a lower selling price achieved.
Buyer Reliability: Unlike traditional auctions where buyers are often vetted and pre-approved before allowing to bid, eBay can sometimes attract non-serious buyers or scammers who win auctions with no real intention of paying. This can complicate transactions, lead to disputes, and wasted time having to relist your gold jewellery and starting the selling process over.
Shipping Risks: It can be difficult within the UK to find a courier to insure your parcel. Royal Mail will cover up to a maximum of £2,500 and generally the maximum cover your will find with a courier is up to £4,000, which can cost quite a lot. Sending valuable jewellery in the post can carry risks, including loss or damage during transit. Ensuring items are properly insured and tracked can add to the cost and complexity of the sale.
Time and Effort: Answering buyer questions, writing descriptions, taking photographs of your jewellery, packaging your items for dispatch, is extremely time consuming. Sellers need to invest effort in initially producing and maintaining their eBay listing.
There are some great gold buyers online and on the high-street. These are businesses that specialise in buying and selling gold and some other precious metals. This involves bringing your gold jewellery into a gold dealer for analysis and evaluation, or posting your gold to them online. The gold buyer will weigh your unwanted rings, necklaces, and bracelets etc. and testing their gold content to give you a buy price. Here are some of the advantages and disadvantages of selling to a gold buyer:
Immediate Payment: One of the biggest advantages of selling direct to a gold buyer is the speed of the transaction from start to finish. You can receive cash or bank transfer on the spot if you bring your gold into a store. This is perfect for those unexpected bills or financial emergencies.
Simplicity and Convenience: The selling process is extremely straightforward, a gold dealers business is geared towards just buying and selling gold, so their processes are very streamlined. You bring your old gold jewellery to the buyer, they appraise it, and you get an offer. There are no lengthy waiting periods or complex procedures involved.
Certainty of Sale: Unlike auctions where there is uncertainty about whether your jewellery will actually sell and only a price estimate to work off. When you sell to a cash for gold shop, you are guaranteed to be able to sell on the day, and you can approve the price before you commit to the sale.
No Fees or Commissions: Gold buyers typically do not charge the seller any fees or commissions, which means you get the full amount of the agreed-upon price. This can be more financially advantageous than paying auction house fees. It is important to check the small print, as most gold shops will not have any hidden fees, but some online only buyers can have small fees for postage etc.
Professional Appraisal: Going to a gold buyer can often result in you achieving the fairest valuation for your gold. Gold jewellery buyers have the equipment to analyse your jewellery and the experience to price your items accurately, meaning you will be getting the appropriate monetary compensation.
Cons of Selling to a Gold BuyerRoom For Lower Offers: Although jewellery buyers may offer a price slightly lower than selling your gold to a private individual, you are avoiding all the risks, and time consumption involved with selling privately. This small price difference is often well worth the hassle saved for many people.
Potential for Unscrupulous Buyers: Unfortunately not all gold buyers are reputable. It’s important for you to research online reviews and testimonials from previous gold sellers before choosing who you sell to. There is a risk of a pre-owned jewellery dealer undervaluing your items or taking advantage of the sellers lack of knowledge. It is important to thoroughly research and choose a trustworthy business.
Emotional Attachment: If your jewellery has some sentimental value, selling it quickly for its gold content might make you feel slightly uneasy. Using an auction or online marketplace might give you more time and control over finding a buyer who appreciates your jewellery’s worth beyond just the gold content. It’s important to note, that jewellery sold through a gold buyer is not always melted and recycled, some items do find a new home as jewellery piece.
Deciding where to sell your gold can be a challenge, we advise you to consider all the pro’s and con’s mentioned in this article. Where you choose to sell depends on various factors, including the type of jewellery, your financial goals, and your tolerance for risk and effort.
Traditional auctions offer the potential for higher prices and access to serious buyers but come with uncertainties with sale price and significant fees that can eat into final sale proceeds. eBay provides broader reach and control over the selling process but involves dealing with market saturation, buyer reliability issues, security risks and shipping risks.
Ultimately, we believe selling to a specialist gold buyer offers you the balance of time saving, efficiency, potential for high prices, and the most secure selling environment. If you have extremely high-value, rare, antique pieces, a traditional auction might be the way to go to get your jewellery in front of the right buyer.
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