Wearing a precious gold ring and making money with it at the same time? Many believe in a jewelry investment and we’re getting to the bottom of it.
What Jewelry Can Be Invested In?
As you probably thought, not every piece of jewelry is as precious to be valuable and an investment source.
Gold jewelry has one of the biggest chances to become valuable. But here, you’ve got to look out for what gold you buy. The higher purity of the gold you purchase (18-24k gold), the higher the value is and the more it can be seen as an investment.
Platinum is also another valuable jewelry material. Next to the materials, vintage and antique jewelry may rise in price over the years as well. Jewelry from big brands, as well as very limited editions, can have a high value, while it’s important here to have the manufacturer’s stamp. Apart from gold or platinum jewelry, natural saltwater pearls, diamonds, sapphires, emeralds, and rubies can gain worth over the years.
However what jewelry you have chosen to be your investment, always make sure that the piece is in good condition, untarnished, and of high quality. That’s exactly what brings us to the first problem.
Is Jewelry A Bad Investment?
Gold was and probably will always be a part of the commodities. The problem is here that old jewelry doesn’t equal pure gold that you can easily sell again.
1. First, in most western countries, you can mostly buy 14k or 18k gold jewelry while premium (22k or 24k gold) is preferred for gold jewelry investment
2. Jewelry is different than gold bars or coins for example for those who don’t want to have their gorgeous just laying in a safe. It’s understandable to make something out of your investment while waiting for it to gain value, but this brings high risk. The rubbing on the skin and a possible loss of weight can turn into a depreciation of the jewelry. By wearing it, you always risk losing it, getting it stolen, or damaged accidentally. If you want to see it as a pure investment, you do have to protect and ensure it.
3. Another difference between simple gold bars or coins is the design that is connected to the jewelry. New jewelry has a very high markup. Manufacturers and brands want to make good margins themselves. On the one hand, the price of the jewelry you pay is adequate to the jewelry’s value. On the other hand, it doesn’t fit to the price of the commodities which is what you will sell it for. Jewelry can be harder to gain money out of your investment, compared to gold bars.
4. Many people have this romanticized picture our grandma gives us one of the vintage jewelry pieces that brings us today around $1000. Back in reality, we see that this is rarely the case. As it is said in “special”, very valuable and special vintage jewelry pieces are rare. That’s what makes them special. It’s often not as easy to sell those pieces as it is as stocks or other liquid assets. Many antique jewelry pieces can be sold at auctions which brings a high risk to it due to the unpredictability of the bidders. This can also be seen in selling gems. Each dealer makes his valuation which makes it harder and less predictable to invest in the jewelry
The Controversial Gold Investment
Having talked about investing in gold jewelry, we’re going to take a step back and talk about investing in gold in general.
Some other experts say that gold, just like raw land or oil, doesn’t earn income over time, different than real estate for example. Because of this non-productiveness, it is said that gold isn’t an investment and doesn’t build value over time.
Why Invest In Gold Now?
Looking at the growth of the gold price, we see that there has been quite a rise, especially when looking at 5o years ago. Some experts say that gold prices go along with the rising inflation. With that, gold can be a useful asset, during economic problems for example.
Why Do People Still See Jewelry As A Good Investment?
Jewelry is more than just an accessory and also more than a plain investment. Many people buy expensive jewelry to wear and enjoy it, taking the risk that its value gets lower.
That’s why you should purchase something that you would like to keep or wear, in case of not being able to sell it profitably. As said earlier, it happened in the early days that many kept their precious jewelry for the future generation.
But having expensive jewelry in your pockets can be also a safety net. This was the case a long time ago or still is in other countries in the world. In times of global recession or stock market crashes, many investors see in gold a big chance. Another method is to melt your gold jewelry into gold bars and try to sell it better. In the case of diamonds, those can be removed from their settings.
What To Make Sure When Investing In Jewelry
If you do decide to invest in jewelry, whatever your reasons are behind that, you make sure that you don’t react spontaneously.
Since this is a huge topic, there are many platforms to look at and ask other people about their experiences. As easy as you can do that online you can also talk to people in your surroundings.
It’s always great, as it gives you a better feeling too, talk to professionals, meaning jewelers or investment bankers. You don’t want to regret your decision for some weeks, months, or years. When it comes to what jewelry to invest in, take a look at our previous tips.
When purchasing, be very sure that you buy high-quality, jewelry in good condition, with the brand’s stamp, and from a trustworthy supplier. Here as well, get some professional help if needed.
Wrapping It Up
Puh, that has been a lot. Still, it is important to consider all these things and to make sure that you want to invest in jewelry. To sum it all up, we’ve put all the important information in this table. You can easily go through it again to let you help during your decision-making.
| Premium gold (18-24k) can have a high value and can be sold well | Gold jewelry is mostly 10k or 14k western countries | |
| other materials can get valuable as well, e.g.:naturalsaltwater pearls, diamonds, rare vintage rings, sapphires, platinum, emeralds, rubies | Valuable vintage pieces are rare, gem dealers have all different prices, dependent on auctions | |
| enjoy and wear the investment out, connect memories with it | Investment has to be protected, jewelry must be in great condition | |
| Buying from a quality name brand can pay off, limited editions have high value | Very high markup, you sell it for less in the commodities than you paid for the jewelry | |
| Having a safety net in case of political and economic crises, gold keeps up with inflation |
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