Cutting metal shapes

[Jonathan]

What I would like to do is cut small shapes from metal plates, mostly aluminium but at lower grades like 1050

If you can choose the grade then don't choose 1050, as it's difficult to cut. You'd be better off with 6082 for instance.

and about 16gauge / 1.4mm thick as it would be used for jewellery.
It would be small designs and shapes, circles stars etc on average about 1" diameter.
Now I thought I found the perfect machine with a cheap Chinese cnc router

To get the 'perfect machine' for that budget, you'd need to make your own. A CNC mill would be acceptable, but it would be much better if a high speed spindle was added as you'll be using very small cutters.

The Chinese CNC routers you see on eBay are fine for the engraving, but they would take a long time to cut out the part. If you're making lots of these then you want a better machine. If it's just a few here and there then go for it...