Why is Designer Jewelry Worth More than its Precious Metal Value?
- Barry E. Blank, G.G.
- Sep 18, 2019
- 2 min read
Opening a gift box with a beautiful Tiffany bracelet, Chanel earrings, 18k gold Rolex watch or Gucci ring, often results in feelings of extreme excitement and elation. For others, it was time to buy something special with the bonus received at work or because they wanted to create a certain image associated with designer jewelry.
If shopping or looking to sell, the question now becomes, why does designer jewelry cost so much more than the cost of its precious metals and stones? The answer is determined in part by the design, craftsmanship and quantity (supply).
Another cost to factor in - is DEMAND, which is often influenced by marketing. Whether placing a full-page color ad in prestigious publications, on television, radio, or through social media, advertising is expensive. And, let’s not forget about the cost of building or renting a store - with all the bells and whistles to display the jewelry, along with training staff and hiring experts.
With this in mind, an 18k gold Men’s Rolex watch valued at $25,000 may only contain $5000 in precious metals, and a Tiffany necklace (silver) with a retail value of $600 may only contain $40 in silver. In addition, certain designers - such as Rolex have limited production, creating rarity.
The same concept holds true for items other than designer jewelry - such as designer handbags or clothing. A Chanel or Louis Vuitton bag may have a retail price of three, four or five digits, which may be a fraction of the actual manufacturing cost. For many, the price of a designer bag is definitely worth it.
People come to National Estate Jewelers of East Brunswick to buy and sell designer jewelry and items. Whether it’s time to sell the Chanel earrings or Tiffany bracelet and necklace you no longer wear, Louis Vuitton bag you purchased for a special occasion or the Rolex watch you inherited, come to our store or schedule a home visit. We are willing to travel up to 120 miles outside of East Brunswick to evaluate jewelry - even further for special cases. As EXPERTS, we base our prices on market conditions, supply and demand. Be confident when selling or buying designer items, as well as non-designer jewelry. Barry Blank, owner of National Estate Jewelers and his Team, have over 60 years of combined experience. They are conveniently located at 212 NJ-18 in East Brunswick, next to the FedEx office.
Stop in or call 732-257-GOLD (4653). At National Estate Jewelers we make YOU an offer and NEVER ask you how much you want… that would be unethical.