How Jewelry Buyers Determine Value: Inside the Evaluation Process

If you’ve ever thought about selling your jewelry and wondered how buyers decide what it’s worth, you’re not alone. Many people assume it’s all about weight or gold content — but in reality, the process is a little more complex.

Professional jewelry buyers consider several factors when determining value, from purity and craftsmanship to market demand and resale potential. Understanding how this process works can help you walk in with confidence — and make sure you get the best possible offer.

The Difference Between Appraisal and Market Value

The first thing to understand is that an insurance appraisal and a buyer’s evaluation are not the same.

An appraisal is usually created for insurance purposes and often lists a replacement value — what it would cost to buy a similar piece new at retail. That number tends to be inflated, sometimes two or three times higher than what someone would pay on the open market.

When you visit a jewelry buyer, they’re assessing market value — what your piece can realistically sell for today based on metal content, diamond or gemstone quality, and demand. That number is lower than the appraisal, but it’s a true reflection of its real-world worth.

Step 1: Verifying Metal Type and Purity

The first step in any evaluation is confirming the metal composition. Most fine jewelry is made of gold, silver, or platinum, but the purity (karat level) matters.

Buyers use tools like electronic gold testers or X-ray fluorescence (XRF) machines to identify exactly how much precious metal the piece contains. For example:

• 10K gold contains 41.7% gold

• 14K gold contains 58.5% gold

• 18K gold contains 75% gold

The higher the karat, the higher the gold content — and the more valuable it is by weight.

Pieces that are plated or gold-filled have very little precious metal content, so while they may look nice, they don’t carry significant resale value.

Step 2: Weighing the Metal

Once purity is established, the jewelry is weighed precisely on a jeweler’s scale. Weight directly influences value, since gold and silver prices are traded daily by the ounce.

Buyers refer to the current live market price (also known as the spot price) and calculate your offer based on that day’s rate. This ensures your payout reflects what the metal is actually worth in real time — not last week’s numbers.

Step 3: Evaluating Stones and Craftsmanship

If your piece includes diamonds or gemstones, buyers will assess their quality and size. While small or lower-grade stones may not add much value, high-quality diamonds or natural gemstones can increase your payout significantly.

Buyers also consider design, brand, and craftsmanship. A signed piece from a brand like Tiffany or Cartier, or a well-made antique ring, often commands a premium beyond just the metal value.

Step 4: Considering Market Demand

Just like real estate or cars, the jewelry market has trends.

Some styles and metals go in and out of fashion — for example, yellow gold has become much more popular again in recent years. When demand is high, buyers are more likely to pay stronger prices because they can resell items quickly.

The same goes for diamonds: shapes like oval and radiant cuts have been in high demand, while older cuts may fetch slightly less.

A good buyer will consider all of these factors before finalizing your offer.

Step 5: Explaining the Offer Clearly

Transparency is key. A reputable buyer explains how they reached their number — showing test results, weights, and current pricing so you understand exactly how your jewelry was valued.

At American Gold & Diamond Buyers, every evaluation is done in front of you using live market data. There’s no pressure to sell, and you can walk away knowing your item’s true worth.

What You Can Do to Prepare

Before bringing your jewelry in:

• Clean it gently so it looks its best.

• Bring any certificates or appraisals you have — even if they’re old, they can help establish details.

• Group items by type (gold, silver, diamond, etc.) to save time during the evaluation.

Why This Process Matters

When you understand how jewelry buyers determine value, you’re in control. You’ll recognize a fair offer, ask the right questions, and feel confident knowing your items were assessed properly — not guessed at or undervalued.

The goal isn’t just to sell, but to sell smart — and that starts with working with a buyer who values honesty and transparency as much as you do.