So far, you might have purchased jewelry to look beautiful, flaunt among your friends and match your outfits. But do you know your precious jewelry can act as a beneficial investment too? Henceforth, while shopping for jewelry, look at the beautiful pieces from the point of view of investment i.e., how much return they can give you.
While looking for different alternatives for investing in place of equity, when the market is volatile, there is often a tendency among people to invest in gold, as gold has often been considered as a safe type of investment.
Jewelry is proving to be a strong investment. E.g., a 6.7-carat Kashmir sapphire was auctioned for $206,500 in 2012, whereas a similarly sized one was sold for $550,000. What’s more, unlike a stock, you can wear a Kashmir sapphire while its value increases.
It also scores over contemporary art because you don’t have to spend more than $100,000 to get something investment-worthy.
Why is Jewelry a Good Investment?
Jewelry has always been proven to be a good investment as materials like gold and diamonds have been in high demand for ages, irrespective of any other trends, problems or financial crises happening. This high demand keeps jewelry valuable and profitable in the event of reselling it. Unlike currency, whose value keeps changing based on the economy, jewelry with significant gold content is always valuable.
A gold necklace or nosering doesn’t have to be always stay a gold necklace or nosering. It can be melted and transformed into a new piece of jewelry or something altogether different like a gold coin or bar. Diamonds are equally valuable because they can be taken out from their settings and reused to form new pieces. Top-notch, large diamonds are valued for their high clarity, cut and lack of imperfections. This doesn’t seem to be changing anytime soon.
Which Type of Jewelry will be Highly Valued?
The value of stocks may keep going up and down, but that of jewelry doesn’t. According to industry experts, certain types of jewelry have a very promising future. These include, rare vintage rings, gold and platinum pieces, sapphire, natural saltwater pearls, rubies, emeralds, and colored and fancy diamonds. If you’re planning to invest in jewelry, you should follow the suggestions of experts and buy the pieces they recommend, for example Faberge Eggs or large stones. Not only these pieces are extremely stunning, but also, they are a smart purchase because their value will only increase over time. This means that if you ever feel the need to sell them, you’ll get your money back with some addition. Of course, you can hope that you’d never need to sell them and you can proudly pass the high-valued pieces to your heirs, so their net value increases too.
The investment potential of a jewlry piece depends on the following factors.
Quality: As an investor, you should be able to acknowledge the quality of the stone, material and craftsmanship. Beauty and brand labels might still increase the value. However, it’s the quality that would be important to the end price. Thus, to make your jewelry investment as best as possible, you’ll have to educate yourself, research and be patient.
Cost: Just like with real estate, jewelry investments should be well-timed. Once you learn about what makes a good diamond, purchase when experts advise it’s a good time to do so and sell when prices go up. Before buying, research, wait and finally take a risk. In the worst scenario, you might end up owning an amazing piece of jewelry – do you think that’s bad? Records show that sometimes prices of gold and diamonds drop, but return soon and even exceed their high points.
Maintenance Cost: Unlike vehicles and real estate, maintenance cost of jewelry is insignificant. If you store the jewelry properly, you’ll have to spend just for an annual inspection and polishing.
Gold, stocks and real estate are the three most common investments people choose. Diamonds should be added in the list. Besides being a girl’s best friend, they are everyone’s fantastic investment. Another way to get profit from gold price increase is to invest in gold-related businesses, such as mining. To get even more benefited from jewelry investments is to invest in second-hand pieces that have personality. You should buy these from trusted sellers. Just be sure you buy something that you’d love to wear and pass on to your next generations. No matter, whether it will pay off with time or not, a high-quality piece of jewelry is definitely a must have. In any case, it guarantees the pleasure of wearing it and you might in fact want to keep it forever.
Jewelry investments have outperformed the US equities, gold bullion and New York real estate, over the past ten years. So, from now on, look at your jewelry shopping seriously as making some extra money over time! Happy shopping!