"There has been a stigma with selling personal jewelry," says Del Gatto, who founded SellJewelry in 1998 in partnership with two jewelry industry veterans and the backing of the venture capital firm New York Community Investment Co. Not until April 2001, however, did he begin advertising his company nationally in business publications such as the Wall Street Journal. Through his company—the only national firm dedicated to the purchase of fine jewelry—Del Gatto endeavors to alter people’s attitudes about selling these precious assets. To accomplish this, he and his staff have created an environment of discretion and ease. Clients are brought into private rooms to meet with experienced appraisers whose mission is to offer them the best price possible for their pieces. Once clients accept an offer, they are immediately presented with a check—with no commission charge or fees deducted.

"I never knew a place like this existed until a friend of mine came here with her grandmother’s necklace and made a killing," said a well-heeled, 40- something woman, while waiting in SellJewelry’s New York reception area for her appointment. Once ensconced in a private showroom, the woman (who wishes, understandably, to remain anonymous) presented the appraiser with a gold and diamond Verdura necklace, a gift from her husband. After careful inspection with his loop, the appraiser offered the client several thousand dollars for the necklace. She immediately accepted the offer and was presented with a check moments later. "I never liked the necklace," she said with a satisfied smile. "Now I’ll have to explain to my husband where it went."

While Del Gatto builds his reputation by offering clients the best price for their jewelry, he cautions that the public should not expect to get the appraisal value, or even close to the retail value, for their jewels. Jewelry appraisals often are inflated, he says, for insurance reasons. Moreover, SellJewelry does not have hard and fast rules as to what percentage of retail it customarily pays its clients; the variables are far too numerous. Signed pieces, for example, have more value than similar unsigned jewelry items. Certain trends, such as the current demand for diamond chandelier earrings, will also drive up the price of an item. And common, unbranded merchandise, such as commercial pearls, will bring little reward or satisfaction to the seller.

"Jewelry is rarely an investment; it is a luxury purchase," Del Gatto reminds us. "But it is a good luxury purchase. Unlike other luxury purchases, jewelry will still maintain its value after it’s been used." A Chanel suit or pair of Gucci shoes, he points out, has little value once it has been worn, while the demand for beautiful estate and vintage jewelry has exploded in recent years as Hollywood superstars such as Nicole Kidman and Catherine Zeta-Jones continue to be photographed in fashionable vintage jewels.

"Jewelry is rarely an investment; it is a luxury purchase. But it is a good luxury purchase. Unlike other luxury purchases, jewelry will still maintain its value after it’s been used."

Until now, the estate, vintage and secondhand jewelry supply moved through a web of widespread dealers and small, local retailers across the country. In many ways, these predominantly family-owned companies remain unchanged from a century ago, trading small lots or pieces of estate jewels, constantly hunting for new sources. By contrast, SellJewelry has pursued a 21st-century methodology. "We have developed an efficient system to procure jewelry from around the world and distribute it quickly to the right resources in the trade," explains Del Gatto. "There has never been a national pipeline to funnel large quantities of estate, vintage and previously owned jewelry to dealers."

Del Gatto, a trained gemologist and diamond cutter by the age of 18, possesses a unique, firsthand knowledge of the challenges of finding high-quality estate and vintage jewelry. After starting a diamond-cutting and manufacturing facility on New York’s 47th Street, he sold his business to become a partner in MHR Estate and Fine Jewelry, which purchased jewelry from individuals and wholesalers, then sold it through trunk shows at upscale retailers such as Saks Fifth Avenue and Bergdorf Goodman. Partner Jeffrey Singer is a third-generation estate jewelry dealer who grew up in the industry, and their third partner, Richard Tilles, was an international estate and antique jewelry dealer. It was Tilles who, on a whim, established a SellJewelry website in 1998 as a means of acquiring jewels to resell to the trade. Del Gatto and Singer, who were partners in MHR at the time, allowed their friend to set up a phone line for his new website in their offices. Soon thereafter, people nationwide were mailing parcels of jewelry to sell. The three brokers quickly realized the concept had great potential. "By advertising nationally and establishing drop-off points in key cities, the opportunity to become a national brand became apparent," observes Del Gatto.

SellJewelry now receives about 50 calls a day from interested sellers who visit its offices, an affiliate jeweler such as Martin Katz in Beverly Hills, Wilson & Sons in Scarsdale, N.Y., or Robert Lawrence in Washington D.C., or simply mail in their jewels. "It’s our extensive connections in this business that allow us to quickly distribute large quantities of jewelry to a network of dealers and collectors," explains Del Gatto, whose model outsiders would be hard-pressed to duplicate given the insular nature of the business. Incoming jewelry is merchandised with a few compatible pieces in a pouch and sorted by category, such as Art Deco, mid-size diamonds or colored gemstones. SellJewelry allows dealers to view the offerings and place a concealed bid on any pouch of jewelry. Typically, jewelry moves in and out of the showroom within a 30-day period. This process allows the company to get the strongest prices from the trade; SellJewelry supplies some dealers with upward of 80 percent of their merchandise. But this is not to say that the practice is without its flaws: "Occasionally," he admits, "we lose a little money on a purchase, but with so many transactions, sometimes we have to come up a loser."

"It’s a very innovative concept," says a third-generation estate jewelry dealer who requested anonymity. "They are networking on a large scale and can provide me with a great selection of jewelry. Otherwise, I would have to work with a large number of private clients to find goods." This jewelry broker visits SellJewelry almost daily to view the latest acquisitions and make his bids.

Not every transaction, however, is a willing one. Del Gatto finds himself occasionally appraising and buying jewelry from banks, attorneys, executors of estates, a disgruntled spouse or European aristocrats. "Discretion and tact are of the utmost importance in this business," he says, recalling one woman who came to sell a 6-carat fancy yellow engagement ring with a retail value of $125,000 after her fiancé abruptly called off the nuptials.

He also has counseled families in dispute over whether to liquidate pieces. A widower recently visited SellJewelry with his two daughters, one of whom wanted to sell their mother’s emerald-cut diamond worth approximately $100,000, and the other of whom clearly did not. "In this case," Del Gatto explains, "I acted as both a psychologist and an advisor." In the final analysis, the family chose not to sell the ring, but Del Gatto believes that he established a level of trust that could perhaps lead to additional sales or referrals. "Part of our mission," he acknowledges, "is to guide every customer to the right decision, and sometimes this means holding on to their precious jewels."

Part of SellJewelry’s mission is to guide every customer to the right decision, and sometimes this means holding on to precious jewels.

A true testament to the company’s newfound success, says Del Gatto, is that when a retired industry dealer went to sell his wife’s 8-carat, D-flawless Bulgari diamond ring, he came to SellJewelry. The man had shopped the ring around to every dealer in town, but Del Gatto was able to give him by far the best offer: $200,000, which was in line with its wholesale cost.

"We are providing a valuable service for our clients and for an industry that was ripe for change," remarks Del Gatto, who reminds us that these pieces transcend the transaction itself: "Every jewel," he says, "tells a story."

SellJewelry, 800.876.5490, www.selljewelry.com