If you’re thinking about selling items of jewellery, it’s good to have an idea what they’re worth before you go ahead. This can be less straightforward than you might assume.
Unless you’re dealing with pure gold, which has a defined value per ounce, jewellery valuations in South Africa (and everywhere else) include a degree of subjectivity. Also, there’s more than one type of valuation.
Instead of selling, you can use jewellery such as gold or diamonds to secure a loan from LoanAgainst. This is a fast, easy way to unlock the value of the jewellery without having to sell it.
Different types of valuations
Before you get jewellery valued, you need to know what type of valuation to get. You need to understand different valuations if you want to sell or pawn the item.
A valuation is based on the raw materials of the piece and also on who made it, the era it’s from and the demand from collectors and investors.
An item’s resale value is significantly lower than its retail replacement value, which is calculated for insurance purposes.
Insurance valuation
An insurance appraisal covers the full retail value. This is how much you’d have to pay to replace a stolen or lost item.
This type of appraisal considers the materials, aesthetics, maker, age and market demand. It will be a high value but it doesn’t mean this is what an insurance company would pay out.
Market valuation
The market valuation is the price you could expect to get if you sell your jewellery. The amount changes over time based on demand and on the value of the item’s components, such as gold. This is why it’s important to have your jewellery valued every couple of years.
Estate valuation
An estate valuation is usually done after the reading of a will. It’s the expected value of a piece if it’s auctioned as part of an estate. These valuations are usually low because there’s no guarantee how well a piece will sell at auction.
Security valuation
A security valuation is when a lender appraises an item of jewellery that you want to use as collateral on a loan. The valuation is based on the components of the piece, such as the gold or precious stones, but not the history, aesthetic appeal or maker.
The best way to get jewellery valued in South Africa
Generally, it’s not advisable to get a free valuation. This is because establishments offering free valuations likely have a vested interest. For example, they may be interested in purchasing your jewellery. This makes their valuations less objective.
To get the most accurate valuation, choose an appraiser who is locally certified and has gemological training. It’s also worth checking for online reviews and feedback from previous clients.
What an appraisal report should include
When you get your jewellery valued, ensure the report includes all essential information:
- contact details and home address
- the date and purpose of the appraisal
- a detailed description of the piece
- notes on gemstones and settings
- a description of the item’s condition
- a photograph of the piece
- the final valuation in the relevant currency.
Market value versus appraised value
As the saying goes, something is only worth what someone is willing to pay for it. This isn’t completely accurate for jewellery appraisals but it explains the difference between market value and appraised value.
Market value is what you can sell an item for; appraised value is its intrinsic worth.
For example, an appraisal of your jewellery item’s individual components (the gold, silver, precious stones) might not equal what someone is willing to pay for the piece because of its history, brand and design.
What we offer at LoanAgainst
At LoanAgainst, we offer short-term asset-based loans that use a valuable piece of jewellery as collateral.
Instead of selling your jewellery and losing it forever, you can access its value through a collateral loan.
Once the loan is fully paid off, the item is returned to you and your ownership is unaffected.
To get a loan against an appraised item of jewellery, send us your item’s valuation, a copy of your ID and proof of address to get approved within 24 hours.
For more information about pawning jewellery as a way to get cash in South Africa, call us on 079 726 4690 or simply complete and submit our online loan application.