Pre-loved jewellery sparkles as gold prices surge, attitudes change

[SINGAPORE] Even while record-high gold prices hog the headlines, some consumers are turning to pre-loved jewellery as value-for-money purchases.

Pawnbroker ValueMax, which sells used jewellery under its D’Lux Jewel brand, has observed steady – and in some periods, stronger – interest from festive buying and possible optimism on bullish gold prices.

The attractiveness of pre-loved jewellery stems from its strong value proposition: Buyers enjoy significant savings while still owning genuine gold jewellery with intrinsic value, says Yeah Lee Ching, ValueMax’s managing director for retail and trading.

“Such purchases can be viewed as asset acquisition rather than pure consumption.”

They are also unique, since each piece is one of a kind, often reflecting designs from different time periods and tastes, including antique, retro and contemporary styles.

ValueMax’s pre-loved pieces are professionally cleaned, polished and “restored to look as good as new”, then presented in boxes suitable for gifting.

Gold Hub Jewellery has also seen increased interest. However, because it focuses on used branded items, demand is “not purely about gold”, but also brand desirability and the liquidity of certain models.

Buyers are often those seeking a specific model, gold colour and size that is no longer in production or is temporarily unavailable.

“In many cases, customers are not asking for something cheaper; they’re asking for something specific,” says its director, Toh Yong Heng, who sees Gold Hub’s role as helping locate specific pieces.

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“In that sense, we complement the brands rather than compete with them. The strength and desirability of maisons such as Cartier and Bvlgari are what make the secondary market possible.”

Second-hand jewellery is also a more environmentally sustainable option. Yeah notes that the carbon footprint involved in refurbishing and reconditioning existing pieces is “negligible”.

In addition, depending on how the pre-loved pieces are sourced, goods and services tax may be charged only on their gross margin, rather than the full resale price.

Generally, prices for pre-loved jewellery are about 20 to 50 per cent lower than when bought new, with a smaller gap for iconic and high-demand branded pieces. Toh says condition and completeness are also factors.

It helps that attitudes toward buying second-hand jewellery have also shifted significantly to signal financial prudence and practicality, he notes.

“The conversation has moved from ‘Why buy second-hand?’ to ‘I’ve been looking for this’. Buyers today are more informed and deliberate, especially younger consumers who are already comfortable with resale watches and handbags.”

The bulk of his customers are young professionals in their late 20s to 30s who “appreciate branded jewellery but are financially disciplined”, as well as established professionals and collectors.

ValueMax’s pre-loved jewellery customers are mainly collectors, businessmen, professionals, housewives and working adults aged between 25 and 65. Many are repeat customers who regard jewellery as both adornment and investment.

All things being equal, pre-loved jewellery that is resold is estimated to fetch between 10 and 20 per cent less than what was initially paid for it.

But while its depreciation curve is generally gentler than that for brand-new items, Toh says used jewellery should not be viewed as a short-term trading instrument.

“It is primarily something to enjoy.”