Sell diamonds in NYC – Tips on who to trust and who to avoid

If you’re in New York City looking to sell your gold jewelry, you’re most likely wandering around the famous Diamond District along West 47th Street between the 5th and 6th Avenue. Here, a constellation of more than 2,600 small jewelers and wholesalers buying and selling gold, gemstones, fine jewelry, and diamonds, compete for a piece of the pie. According to estimations, around $400 million of jewelry, diamonds, and precious metals are bought and sold in the District every day!

You may come home excited from your excursion, knowing that you were paid top dollar for your treasures. However, you may be sharing horror stories of how you were ripped off. The same goes for buying diamonds in the busy District. How do you know which gold jewelry buyers to trust in NYC?

A bit of history

Like every shopping area in a city, there are establishments you can trust and those you want to avoid. If the Diamond District has maintained such a prominent position since the 1800s, consumers have mostly trusted and supported local businesses. Back then, buying fine jewelry from Maiden Lane was a status symbol. Despite some bumps in the road at the beginning of the 20th century and Roaring Twenties that nearly forced jewelers to move to Canal Road and its surroundings, the trade managed to remain where it is today. It is even home to the DDC (Diamond Dealer’s Club) of New York, one of the world’s largest and oldest diamond exchanges.

Besides its intriguing history, the area doesn’t come without a reputation for certain unwelcome elements. How do you sort the riff from the raff? Who are the soliciting hawkers on the streets carrying banners, handing out leaflets, smooth-talking, and pestering gullible clients into stores? Would you trust them with your gold jewelry?

Knowledge is power

Firstly, the process of selling gold in NYC isn’t general knowledge. Gold owners flock to jewelry shops, pawnshops, and “Cash for Gold” shops, to sell gold. However, gold prices continuously change, generally rise during an economic downturn, as is currently the case. So, if you have gold jewelry, gold coins, or bullion bars to sell, you need to know the market price of gold. Also, have an expert test the purity of your gold. If you follow these steps, you are more equipped to ascertain your gold’s value and how much cash you should expect when it’s time to sell.

Governance to protect you

You are also not alone. To protect the industry, its reputation, and consumers, specific laws and organizations govern the District’s jewelers and myriad booths in jewelry exchanges. The Jewelers of America, for example, is a leading non-profit jewelry association in the US founded more than a century ago to advance the professionalism and ethics of the jewelry industry. Its extensive network of members includes jewelry retailers and suppliers across the entire jewelry supply chain. Affiliation is voluntary, and members commit to a Code of Professional Practices for their day-to-day business operations as a condition of membership. This commitment to high ethical practices serves to protect consumers. In 2005, the JA also cofounded the Responsible Jewellery Council, the world’s leading standard-setting organization, to promote standards that underpin people’s trust in the global jewelry and watch supply chain. The RJC Member Register is a publicly searchable list of all current members of the RJC.

The US government’s’ Federal Trade Commission (FTC) is an independent agency whose principal mission is to enforce civil US antitrust law and the promotion of consumer protection. The FTC has  to protect competition and consumers by thwarting deceptive, unfair, and anti-competitive business practices through the enforcement of education, law, and advocacy without overly encumbering legal commercial activity.

Another standard worth mentioning is The Jewelers Board of Trade® (JBT) – a not-for-profit, member-owned association created to promote the wellbeing of its members and the general jewelry industry by procuring and delivering reliable and accurate credit information, efficient collection services, and education associated with credit concerns. A JBT membership is an indication of a business’s legitimacy and financial stability.

Bottom line, there are more than 8,000 jewelry stores countrywide associated with JA and the RJC; and 26,000 JBT member businesses listed in the renowned Red Book Directory. If you are looking for a trusted gold jewelry buyer, best practice would be to seek out a company that has voluntarily associated with a code of ethics!