Had a piece valued and were you shocked by the price?
Do you want to sell gold jewellery and did you take a chain, ring or bracelet out of the cupboard? You may already have noticed that the price a gold buyer offers is considerably lower than what you once paid. That is correct. And there is a very logical explanation for it.
In this article we explain step by step how the price of a piece of jewellery is built up, what disappears on sale and why that has nothing to do with fraud, but with the reality of the market.
Why is Belgian jewellery almost always 18 carat?
In Belgium, 18 carat gold is the standard for quality jewellery. You recognise this by the "750" hallmark inside the ring or on the clasp of a chain: 750 thousandths pure gold, or 75%.
Pure gold (24 carat) is by nature too soft for daily use. A bracelet of pure gold would quickly scratch and deform. By adding 25% other metals, such as copper or silver, the piece gains the necessary hardness without losing its luxurious colour. That is why 18 carat has become the gold standard in the Belgian jewellery industry.
The higher gold concentration also makes 18 carat more valuable than 14 carat (585) or 9 carat (375). But even 18 carat jewellery loses most of its value on resale.
What is included in the purchase price of a piece of jewellery?
When you buy a new piece of jewellery from a jeweller, you do not only pay for the gold. You pay for a whole package of costs:
| Element | Share |
|---|---|
| Gold value weight × carat × daily price | a portion |
| Craftsmanship goldsmith labour | 20 to 50% |
| Gemstones diamonds, rubies, sapphires… | variable |
| Brand value & marketing | up to 50% extra |
| Jeweller profit margin | 100 to 400% |
| VAT | 21% |
The gold itself
This is the basis. A 10 gram ring in 18 carat contains 7.5 grams of pure gold. Its value follows the daily gold rate. This is usually only a fraction of the total selling price at the jeweller.
The craftsmanship
A goldsmith has worked hours, sometimes days, on the design and finish. Complex work and hand engraving raise the price considerably. Labour usually makes up 20 to 50 percent of the retail price.
The brand name
A piece from a luxury jeweller carries the reputation of the brand. That brand margin can raise the price by 50 percent or more above production costs.
VAT
On new jewellery you pay 21 percent VAT as a consumer. You pay this tax once, and you do not get it back when selling to a gold buyer.
Why is the selling price so much lower?
When you sell your jewellery to a gold buyer, they look only at the intrinsic metal value: the weight multiplied by the gold content multiplied by the current gold price. We simply show the price for pure gold.
Everything you once paid extra disappears on sale:
- The craftsmanship has no value to a gold buyer, the gold is melted down.
- The brand name does not count in the gold price.
- Gemstones are valued separately and often low, or not included at all.
- The 21 percent VAT you paid is gone for good.
- The buyer also accounts for their own operating costs and risk margin.
The result: you usually receive half or a third of the original purchase price. The assumption that it would only be 10 to 30 percent is incorrect; in practice the selling price at an honest gold buyer is closer to half or a third of what you once paid. That is still a significant difference, but far less dramatic than is sometimes claimed.
Why are people shocked by the price?
The disappointment is understandable. You paid 900 euros for a gold ring. A gold buyer offers you 300 euros, a third. That feels like fraud, but it is not.
The difference lies entirely in the way value is determined. The jeweller sells you a combination of gold, craftsmanship, brand and emotional promise. The gold buyer buys only the raw material. Those are two completely different things with two completely different prices.
Emotion also plays a role. A ring you inherited from your mother or wore on your wedding day has a value to you that far exceeds the gold. That is understandable and precious. But that emotional meaning unfortunately has no economic value to a gold buyer.
Do you have unique or branded pieces? Then also consider other channels: specialist antique and vintage jewellers, auction houses or online platforms for second hand luxury. For some pieces the collector or aesthetic added value can still be considerable. Always seek advice before you decide.