Things to Consider When Buying Pre-Owned Luxury Jewellery

Gone are the days when people scoff at the idea of buying pre-owned luxury jewellery. With the advent of responsible consumption, purchasing pre-loved pieces became is increasingly becoming an ethical and sustainable option for conscientious consumers.  

But the real lure of pre-owned luxury jewellery is its affordability.  Just think of the value you get for your money for a quality piece that must have cost a fortune when it was brand new.  It is a win-win situation, you help save the environment, and in the process, you save cash. However, buying estate jewellery comes with a risk. How would you know if a piece is genuine? Is it indeed worth the price you are paying?  Can you sell back the item if you no longer want it?

Sometimes, excitement over a unique piece can make anyone throw caution to the wind.  For this reason, we came up with a list of things you need to consider when buying pre-owned luxury jewellery.  Before you decide on a piece, make sure you know the answers to the questions below.

Where Are You Buying Jewellery From?

When it comes to shopping for second-hand jewellery, you have plenty of platforms to explore. The growing demand for affordable quality jewellery has made pre-owned pieces a staple in many markets, from an online pre-owned jewellery marketplace to independent jewellery shops to pawnbrokers and auction houses. The tricky thing is, you have to sift through the long list of merchants to make sure that you are purchasing from a reputable and trusted seller.  No, you don’t want to deal with a shady retailer, or worse, unknowingly buy a counterfeit or stolen piece. 

Many people believe that the safest way to buy pre-owned jewellery is at a physical shop that specializes in second-hand luxury pieces. The advantage of doing so is you can personally examine the potential purchase. The disadvantage is the range of choices may not be as varied and numerous as those in online markets. 

If you prefer to buy your jewellery online, be sure to read customers’ reviews on the retailer, check its return policy, and do a thorough search to verify its credibility.  If you are buying from a private dealer selling in a community-based store such as eBay, ask for original invoice and service receipts, as well as other identifying papers.

Has the Jewellery Been Valued? 

Are you curious about the actual worth of the piece you are planning to buy?  Ask if the item has undergone valuation.  Valuation is the process of analyzing a piece of jewellery to find out how much it is worth. 

The value of jewellery depends on its material, age, and purpose, as well as the current market.  Jewellery owners usually have their pieces valued for insurance purposes in case the items are lost or stolen.  Once a valuation is complete, owners receive documentation that includes a detailed description of the product, coloured photographs, and an insurance qualification.  Some private dealers opt to get their jewellery valued before selling them so they will have an accurate idea of a piece’s price. 

Most jewellery stores offer a valuation service when you purchase a piece.  More established businesses usually have their in-house jewellery valuers, while others outsource the process to an expert.  The main advantage of purchasing valued jewellery is you have the reassurance that you bought a quality piece.   You have the guarantee that the item will be covered by insurance in case it gets lost or stolen.   If you choose to resell the jewellery in the future, you have an idea of how much it is worth. 

Be cautious of retailers who attempt to hide the real condition of used jewellery.  If possible, examine the piece for excessive wear, broken prongs, scratches, or chips. Research how much you would spend to have worn-out jewellery refurbished and add this amount to the purchase cost.  Is the item worth the final price? Does the restoration of the product cost you more?  Refrain from making any buying decision until you are satisfied with the condition of the jewellery. 

Has the Jewellery Been Authenticated? 

You do not want to spend your hard-earned money on a fake. Unfortunately, the market is full of imitation pieces that could easily pass for genuine.  Therefore, it is imperative that you not only buy from a trustworthy jewellery merchant but also ascertain the authenticity of the piece before finalizing your transaction.  

Authentication ensures that the pre-owned luxury jewellery you intend to buy is real. The authentication process is performed by certified gemologists, whether in-house or outsourced, who assess the quality of the pieces and detect imitations.  To establish the authenticity of items, experts employ a variety of methods, including acid tests and X-Rays.  Genuine jewellery often comes with a certificate of authenticity from organizations such as the World Gemological Institute (WGI), Gemological Institute of America (GIA), and the International Gemological Institute (IGI).  However, not all second-hand pieces come with certification. 

You can examine an item yourself to check whether it is authentic or not.  The most common method is to look for stamps or hallmarks that indicate the purity and fineness of precious metals.  Upmarket retailers such as Tiffany & Co. stamp their jewellery with brand marks, so search for these before purchasing a pre-owned branded piece.  To confirm if gold is genuine, try doing the magnet test. Keep in mind that real gold does not stick to a magnet.   Lastly, always ask for documentation whenever possible. 

Take note, though, that some sellers forge documents.  Read the papers thoroughly and be wary of spelling and grammatical errors, as well as blurry text and printing, as these are tell-tale signs of fraud.

Does the Jewellery Have Sell Value? 

Whatever your reason for buying pre-owned luxury jewellery, it is crucial to know if the piece has resale value.  Fortunately, pre-owned jewellery is in high demand, so you are assured that there is a market for your item should you decide to resell it. 

How much the piece would sell for depends on a variety of factors. How did you acquire the item?  When did you buy it?  Is the jewellery in mint condition?  Is it a vintage piece?  Can it be considered estate jewellery?

However, used jewellery hardly increases in selling price unless it is a rare item made of highly precious material or a fascinating period piece with intriguing history or origin. Typically, the pre-owned jewellery will resell around 20% to 60% of the original purchase cost.  Still, it is a comfort to know that you can get a portion of your money back for an item you no longer want.