Selling Gold, Jewellery and Watches
How is the offer for my gold or jewellery calculated?
The short answer
An offer for gold or jewellery generally starts with the weight of the item and its tested purity, which together give the amount of fine metal it contains. That amount is multiplied by the current metal price in rand, and the buyer's margin is then reflected. Condition, non-metal parts, gemstones, brand and resale demand can move the final figure up or down.
The basic calculation
- Weigh the item, excluding stones and non-precious parts where possible.
- Test its metal composition to establish purity, such as 9, 14, 18 or 22 carat gold.
- Work out the fine metal content by applying the purity to the weight.
- Apply the current price of the metal in rand.
- Reflect the buyer's margin, which covers refining, handling, risk and costs.
For example, 18-carat gold is 18 parts gold in 24 by weight, so the fine gold content of an 18-carat ring is three-quarters of its metal weight. A 9-carat piece of the same weight contains half as much gold.
Why the offer is not the retail price
Retail jewellery prices include design, labour, brand, retail margin and VAT. When jewellery is sold for its metal, most of those elements do not carry over, so the offer can be well below what was originally paid. Some pieces are worth more than their metal, such as signed designer jewellery, antiques with collector demand or bullion coins in good condition, and those may be valued differently.
What depends on the item and what depends on Knox
Your item's weight, confirmed purity, condition and any gemstones are specific to it. Gemstones may be valued separately or not at all, depending on the stone and Knox's gemstone policy. The metal price used, Knox's margin and the method for bullion compared with jewellery are Knox policy. Knox's buy-back prices are based on the live international spot price, converted to rand. Krugerrands are bought at Knox's morning (AM) or afternoon (PM) price, and the final offer is confirmed after the coins or items have been inspected and tested.
Understanding your offer
Ask for the weight, purity and price used for each item or group of items, so that you can see how the total was reached. Remember that metal prices move, so an offer applies at the time it is made and a later offer may differ. You are not obliged to accept.
How Knox handles this
Ready for the next step?
Speak to the Knox team about your situation. They will confirm current pricing, availability and requirements before you decide.
