Is Jewellery an Effective Investment?

Posted by on Sep 16, 2022 in Jewelry |

Is Jewellery an Effective Investment

Until now, you might have bought jewelry to look stunning, show off to others and/or suit your outfits. But have you ever imagined that your valuable jewelry can even act as a profitable investment? From now on, while buying jewelry, look at the lovely jewelry pieces from the viewpoint of investment i.e., think upon what return they can give you.

While searching for various options for investing in place of equity, when the market is volatile, there is a common tendency among people to invest in gold, as gold has normally been considered as a safe kind of investment.

Jewelry is proving to be a solid 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 flaunt a Kashmir sapphire while its value goes up.

It also has an upper hand over contemporary art because you don’t need to spend more than $100,000 to get something worth investing.

18CT Six Claws Round Cool Necklaces

Why is Jewelry a Good Investment?

Jewelry has always been proven to be a great investment since materials like gold and diamonds have been in high demand for ages, regardless of any other trends, glitches or financial disasters happening. This high demand keeps jewelry valued and profitable in the event of reselling it. Unlike currency, whose value keeps altering depending on the economy, jewelry with substantial gold content is always valuable.

A gold necklace or nosering doesn’t need to be always remain a gold necklace or nosering. It can be melted and converted into a new piece of jewelry or something altogether different such as a gold coin or bar. Diamonds are equally valuable since they can be removed from their settings and changed to new pieces. Top-notch, large diamonds are esteemed for their excellent clarity, cut and lack of imperfections. This doesn’t seem to be changing anytime soon.


Gold Ring

Which Type of Jewelry will be Highly Valued?

The value of stocks may keep changing, 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 recommendations of experts and purchase the pieces they suggest, for example Faberge Eggs or large stones. Not only these pieces are extremely stunning, but also, they are a smart acquisition because their value will only rise 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.

Grey Diamond Ring

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!