People often sell their old, broken gold pieces in exchange for new jewellery or cash. While gold remains the favourite investment and consumption option in India, some are now opting for diamond and silver over the yellow metal. However, before taking the plunge into buying or selling silver and diamond jewellery, here are some factors the buyer should be aware of.
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Diamond and silver buy-back policy
A buyer should always ask the jeweller about the buy-back policy while purchasing the ornament. A buyback policy informs the customer how much money the article purchased would fetch at a future date if they wish to sell it to the same jeweller. For example, if the customer wishes to sell a silver piece of 925 grade, the jeweller may be willing to pay only for 92.5 percent of silver at the time of selling.
For diamonds, the buyback policy varies from one jeweller to another. In an ideal situation, a buyer can get up to 95 percent of the market value for a diamond solitaire. In case of smaller diamonds, the value could come down to 85-90 percent, The Economic Times quoted Bacchraj Bamalwa of reputed jeweller Nemichand Bamalwa & Sons as saying. However, the return could drop if the buyer is not going to an established jewellery house.
“If you were to buy diamonds from X and sell it to Y, the discount could go up to 30-35 percent, depending on the buyer’s opinion of the stone,” he said.
How much can the buyer expect?
Established houses like Malabar Gold and Diamonds offer 100 percent value of invoice value of diamonds for exchange against diamond jewellery. For solitaire diamond, Malabar offers 100 percent prevailing market value subject to maximum of Rs 10 lakh.
A buyer can get 80 percent of the invoice value of diamond at Thrissur-based jeweller Joyalukkas.
Vaibhav Jewellers offers 80 percent of the value of the diamond jewellery at the prevailing rate on the day of exchange.
Where to sell silvery jewellery?
A buyer can take the silver jewellery and utensils to a store to sell them. While most local jewellers accept silver and allow for exchange, big stores may not. For instance, Vaibhav Jewellers does not have a buy-back or exchange policy for silver. Visiting a local jewellery shop can be the better option as the buyer can negotiate to get a better price for the item.
Where to sell diamond jewellery?
It is best to exchange or trade your diamond at the store from where it was originally bought. However, like silver, small jewellers would be more flexible and willing to negotiate a price on the product, while big chains are more likely to have rigid policies related to these.
Investing in silver coins
Small investors can go for buying silver coins, which is convenient to store and sell at a later date. Silver coins are available at banks as well as reputed jewellers. They come with a certificate about its purity, which is essential at the time of selling in the market. Although banks sell silver coins, they do not buy them back. To sell silver coins, the customer will have to approach jewellers.
