Selling and disposing of this type of property is really complicated and the chances of successfully selling a jewel, a precious stone or the apparently simple “gold by weight” are very slim.
It is an opaque, dangerous and considered high-risk market. There are many ways that they use to deceive, confuse, distort and dupe the consumer with the sole objective of snatching their gold and jewelry at the lowest possible price. It is even probable that when you have believed that you have achieved it to your advantage, your assets have been diminished in one way or another.
Gimmicky scales, altered acids, modified heads, and a long etcetera. Anything goes to catch him, scratch a gram, a pebble, a euro … Reality is beyond fiction!
Regardless, what is a reality is that little or a lot, jewels are money and they can get us out of trouble, they are one of the few assets that we can make liquid quickly and effectively, assets of great importance and easy portability. What gives them the most decisive degree of the goods that we can possess. The history of humanity gives good proof of this.
But let’s get down to business, let’s analyze how to be able to sell a jewel, let’s say, in a “legal” environment today.
The purchase
When you buy a piece of jewelry to, let’s say, make an engagement, we went to the jewelry store and picked out a wonderful, dazzling 1.50ct diamond ring, set in white gold and beautifully designed. Without a doubt a special moment!
This one cost us € 10,000, for example. Over time we find ourselves in need, in serious economic trouble, and we need immediate liquidity; Come on, they cut our electricity tomorrow, we can’t pay for the children’s school and we already have three unpaid mortgage receipts.
The sale
After discussing things as a couple and faced with the situation, we made the decision to sell our ring. So, we think that at least they will give us 6 or 7 thousand euros, right? Start a journey in search of being able to sell our ring urgently. We go to all the buying and selling houses that we come across and discover with sadness and anguish that it seems that our ring is worth nothing, and in the end the one that offers us the most is € 2,500. We look up at the sky and reply Why Lord, why! With the need that we do!
Let’s analyze “why” who else offered us € 2,500.
We are going to do a simple calculation to understand the concept of what in the IGM we call the Rule of 4. That is, why we are not going to be paid for our ring more than a quarter of its market value.
The Rule of 4
If when we buy our ring in the jewelry store, we pay € 10,000 for it, it is because almost certainly the cost of the ring is at least € 5,000. The difference from 5 to 10 thousand is the profit margin of the jewelry, that is, the profit itself from which the expenses of the employees, rent, insurance, electricity, etc. will also be paid. And that’s not counting taxes!
What is clear is that no one who is dedicated to buying and selling jewelry is going to offer the cost of the ring, because for that they buy it from the supplier directly when they have the customer and the sale insured, and in addition, he will give facilities in the payment, to make matters worse.
What happens then? Well, the logical thing, that in the best of cases they will be offering you around 25% of its market value. The logical, but unworthy “fair price” for the resale of our ring.
The effort
Now that we are clear about the concept and why of what they offer us, we begin to think about other possibilities to get out of trouble using our ring. And we started to hear on the street, PAWNS, PAWNS! PAWN YOUR JEWELS! and we thought “why not? I can pawn my ring and get it back when they pay me back” and I keep thinking “with € 2,500 I cover some things, although it doesn’t completely solve my problem, but hey, it’s an option”.
Then we try our luck and we are again astonished to discover; first, that instead of 2,500 euros they offer us € 2,000, arguing that they have to wait for time, the risk of not picking it up, the quotes, blah, blah, blah. And second, OJITO! Because the commission percentages can reach up to 20 or 25% on what is borrowed and they are also CHARGED MONTHLY.
And analyzing and doing some simple calculations think; “I will not get any money again for at least four or five months, so multiplying by the interest that they charge me monthly for my ring, it comes out of one eye of the face. I can’t pawn it either!
Auctions
We think what if we auction it? Auctions have their pros and cons.
In my opinion they have more cons than pros. First you need to have at least 2 to 4 months to, in the best case, receive the cash for the sale.
Keep it Real!
Keep it Simple!
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