Shape: Round
Carat: 0.83Ct
Cert.: DCLA
Asking: $ 2009 (QLD)
Shape: Princess
Carat: 1.34Ct
Cert.: LPC*
Asking: $ 7000 (VIC)
Shape: Round
Carat: 1.54Ct
Cert.: AGS
Asking: $ 10000 (QLD)
More Private Diamonds >

Gold Buyers


Businesses that buy Gold Jewellery to recycle

These businesses are doing what jewellers and gold refiners have been doing for many years and with the same intention. All they are doing is strongly publicising this service to remind people that they can convert their unwanted fine jewellery into money. In fact most (and possibly all) of these gold buying businesses are already involved in manufacturing and / or refining of precious metals.

These businesses are not doing anything wrong as long as they don't mislead the consumer, so the consumer must be aware or told the truth by the buyer about the weight, quality and value of what they are selling. When the seller knows the truth it doesn't matter what they are then offered by the gold buyer. Even if they are offered $200 on a $5,000 piece of jewellery - it doesn't matter as long as the seller knows the facts on what their item is worth. Note: What a jewellery item is worth has nothing to do with what it can sell for. Selling unwanted jewellery is like selling an unwanted car, as selling a car fast is guaranteed if it's taken to a car wrecker who will buy it really cheap on scrap value. A car yard will offer more (as long as the car is in working order and at least in a fair condition). Selling it privately gets the seller the most money but it can take more time to sell their car. So selling unwanted jewellery to a gold recycler is the equivalent of selling a car to a wrecker. It's fast and easy but it means getting paid a very cheap price.

There are other options to sell unwanted jewellery at a higher price but it's not as easy and takes more time. So above I have said that there is nothing wrong with selling gold to a gold buying business (AKA: gold / jewellery recycler) at a very low price as long as the seller is fully aware of what they are selling and what their item is really worth. At the end of the day what makes progress in society is the willingness of people to let go of what they don't need at a low price for someone else to profit from. What goes around comes around, like they say. If people need it then they won't sell it and jewellery sitting in a drawer to eventually be lost or stolen is not as good as immediate useful cash in the pocket. Remember - these businesses are asking you to consider selling unwanted gold and are not asking you to sell something you wear or treasure. This is why in their advertising campaigns they mention to sell "old and broken gold items", as to a gold recycler a broken item is as valuable as a new item of the same gold weight and grade. It also means the seller is willing to accept a much lower amount for it, being in poor condition and unwearable.

There are exceptions since I have seen many people wanting to sell their new gold items at scrap gold value because they don't wear it or it was a gift from a past relationship. A large market is also engagement rings and wedding rings from broken relationships. A lot of the larger gold buyers, such as Cash Converters, Gold Buyers Australia and Precious Metal Exchange do not publicize in their campaigns about buying rings and other gift jewellery from broken relationships.

The reason for this would be as follows:

There can be issues with ownership of jewellery from broken relationships. Also, it sounds disrespectful asking people to sell to them an engagement ring, wedding rings or any jewellery from a broken past relationship. Even though they do buy such items, but they don't publicize it in their campaigns probably for this reason. That's a good thing on their behalf.

For engagement rings especially the metal content is very low in value in comparison to the diamond. They are not as keen to buy diamonds as they cannot be recycled like gold. When gold is recycled and turned back into pure 24 karat gold it's like or sometimes better than cash in the hand. Diamonds have to be either sold to a wholesaler that has a secondhand licence or sold in the shop window. If the engagement ring is in good condition and the design is something that is sellable then the engagement ring is restored and put in the shop window for sale, but this can still take some time to sell.

Recycling jewellery is beneficial for the environment as less gold, diamonds and gemstones will get mined from the ground, but there is a bad side to the gold recycling industry as told below:

It upsets me on how some businesses target their customers. I once seen an ad by a business that was targeting women that had a broken relationship on bad terms, and kept the engagement ring. (In situations like these many women will sell the ring for almost anything. I have heard a story of a woman throwing out her $15,000 ring in the rubbish bin from a bitter relationship break-up.) I SAY TO THESE LADIES: "USE YOUR BRAIN AND NOT YOUR HEART!" 

The advertisement was offensive, especially to the man that purchased the ring and technically this ad may also be illegal, saying to the effect that "the bloke is dumped so now dump the ring he gave you". Of course this was not a joke amongst friends, but it was actually a business advertising online to buy unwanted diamond engagement rings, targeting ladies that had a bitter relationship break up from their partner and willing to get rid of the ring quickly and cheaply. 

Note: The engagement ring is not automatically the woman's property in the event of a relationship break-up since only the reason of the break-up , on which condition the engagement ring was given to her and who paid for the engagement ring legally determines whether the ring belongs to her or him or both. If she kept the ring, whether entitled to legally or because he didn't want the ring back or didn't care that she kept it - then there is nothing wrong with that. There is also nothing wrong if she decides to sell her engagement ring (and keep all the money) - but not sell it really cheap (almost giving it away) to a business with no regard for her and especially him, using an inconsiderate advertising slogan. OK to sell it cheap, but at least to someone deserving.

(M K. 27/02/2010 / Updated 08/08/2011)