Jewelry as an investment & asset: These are the things you need to consider.
If you want to buy jewelry as an investment, you should know the rules of the market. This way you will make wise decisions and get the best for your money.
Almost everyone who owns an heirloom made of genuine gold has thought about selling it at a specialized dealer. One look at the price tags on the jeweler’s display will confirm it. The look of the dealer will surprise you, the gemstone used will probably be worth much more than just the pure gold of the jewelry.
You should know, jewelry and precious stones are not only beautiful to wear and give your look something special but also constantly increase in value. Thus, investing in real jewelry made of gold or platinum with precious stones is a good idea.
If you decide to sell your pieces, you will get a good price from a knowledgeable buyer because they will be able to tell right away if it is a real stone or a cheap imitation. If you decide to keep your pieces, you will appreciate the fact that they will increase in value over time.
Only real jewelry increases in value, cheap costume jewelry is not an investment!
If you invest in jewelry, it must be real jewelry. You can recognize real jewelry by its carat number. The higher the karat number for gold, the purer the metal. A gold ring with a karat number of 333 contains far less precious metal than a ring with a karat number of 555 or a piece of jewelry with a karat number of 750.
Therefore, a piece of jewelry with a carat number is also much more expensive. But to fulfill the purpose of investment, be sure to choose jewelry with a high carat number and preferably additionally with a certified gemstone/opal. This is true regardless of the type of jewelry, whether ring or pendant. Therefore, rather invest a little more money in high-quality jewelry, so that you can still enjoy it after many years. And also you can later complete the sale with a high-profit margin.
Here you need to make sure that you have not purchased a piece of cheap costume jewelry with a glass stone or simple metal with an alloy. The certificate of the seller will help you in this situation. This confirms the authenticity of the jewelry and gemstones used.
Gold, platinum, and precious stones are in demand
Simply put, the value will automatically increase in the years to come as the materials used become rarer and rarer and demand is high.
If you want to sell your jewelry later, it will fetch a much higher price.
Generally, genuine gold and platinum jewelry will always fetch a higher price than other types of jewelry.
So if you decide to sell your jewelry, make sure that it is genuine, but thanks to the certificate, this should not be a problem.
What is the best way to proceed with jewelry investment?
The best way to choose the right piece of jewelry for yourself or another person is to assess the type of lifestyle. This way, you can decide what gemstones to put in each piece of jewelry and especially what metal to use.
It will also help you determine when it is a good idea to invest in a certain type of jewelry. An example of such a situation would be your child’s confirmation.
For a young woman, as an example, a gold pendant with an amethyst or else an elegant pendant with an opal would be the right gift. For a young man, a solid gold man’s ring would be the right choice. Another situation would be, for example, the engagement or the wedding.
Here you give your partner not only a promise of marriage but also a suitable piece of jewelry, which can be useful as an investment. A gold ring with a diamond is a must-have here!
Does jewelry always have to be expensive as an investment?
Most of us wear a certain type of jewelry every day. This kind of jewelry we buy because it is cheap. This type of jewelry is usually costume jewelry. You can find it in most stores in one form or another, whether it is a ring or pendant, stud earrings, or a piercing.
They are usually made of very cheap materials, such as plastic or cheap metals.
These materials are so weak that they break or deform easily if you try to bend or twist them too much. If you want to prevent this from happening, do not apply pressure to these materials. They are not designed to withstand any kind of pressure.
Instead, for all types of jewelry, you should avoid this cheap costume jewelry and rather go for more expensive materials. Here is the only chance of an appreciable increase in value in the years to come.
On the other hand, being more expensive does not necessarily mean more valuable. Many people who invest in expensive jewelry do not take care of their investments and therefore do not reap the rewards of their investments. So how much should you spend on your jewelry as an investment? It depends on your personal situation. If you have a family, consider the long-term aspect of your investment. Don’t buy jewelry just because it’s expensive (unfortunately, this is where the manufacturer’s name often gets paid). It’s up to you how much you want to spend on this type of keepsake. But no matter how much you want to spend, make sure you invest correctly!
These are 3 things you should look for when buying jewelry:
- It is best to buy your jewelry & gemstones from a well-known jeweler or an established online retailer, which specializes in the sale of fine jewelry. Look at the reviews on the internet.
- Before you make the purchase, be sure to ask for a certificate!
- Only buy jewelry made of gold and platinum. Alternatively, you can also buy precious stones such as diamonds or opals. Opals, in particular, have increased in value in recent years.
The disadvantages of gold jewelry as an investment
Besides the obvious advantages of investing in gold, some disadvantages are also worth listing here. By wearing the jewelry, of course, the soft gold will get scratches after a while, but these are easy to remove and repair on gold. The simple polish is enough here. So if you are careful with your gold jewelry, you do not need to worry about depreciation.
Provided you want to sell, it is always a good idea to find out what is happening in the market beforehand. Especially when it comes to selling something that has a high value, such as gold jewelry.
You should not consider selling when the gold price is low! Unfortunately, many people make this mistake. The price of gold will rise again in the long run and especially the gemstones used will rise in price, but you still need to find the right time and also the right buyer!
Are jewelry and gemstones then worthwhile as an investment at all? – Our conclusion
For small investors, investing in gold (or other precious metals) is often unattractive because they have to pay high prices for the gold they buy.
So if you are a “small investor” and want to invest in gold or other precious metals, invest in “real precious metal jewelry” rather than gold bullion or foreign exchange.
Some things are certain. In the short term, stimulus packages from governments around the world will have a tremendous impact on markets. This effect will be both good and bad.
In the long term, it will depend on how much of the money is pumped into the real economy and how much remains in the banks and the banking system.
Instead of considering gold jewelry as a pure capital investment, there is, of course, still the possibility to buy it primarily not because of a potential increase in value, but simply for the joy of jewelry. This is worth explicitly mentioning again at the end of this article and after some of the topics that may be unpleasant for some readers. The important thing is that the appearance of the jewelry gives pleasure or that it reminds you of special moments that you associate with the jewelry.
Rather than just thinking about buying gold jewelry for its investment value, consider the joy of owning and wearing it, as with any other type of jewelry.
Author of this Guest Post: Mario Wormuth.
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