When it comes to investing, the majority of individuals choose to focus on government bonds, art, trading stocks, and real estate. However, you shouldn’t dismiss jewelry out of hand. In addition to being manufactured from the most valuable metals in the world, such as gold, silver, and other precious metals, jewelry can also appreciate in value over time. Jewelry gains value above and beyond the weight of the metal, especially when incorporated into a lovely design. Hence, the answer to the question, “Is jewelry a good investment?,” is unquestionably yes. If this has sparked your curiosity, here is why individuals make jewelry investment and how you may do the same.
What makes jewelry investment a wise step?
Throughout ancient times, we have been drawn to precious metals, with all civilizations favoring gold and silver. From as far back as we can tell, humans have been endlessly fascinated by the inherent characteristics of these metals. Jewelry is thought to be a good store of value since it is made of rare materials, especially as a buffer against monetary issues like inflation. This is due to the rarity and stability of the materials used to make jewelry, including gold, silver, diamonds, and other precious stones. Because they require a lot of skill, effort, and time to acquire, society places a high value on them.
Jewelry has always been an excellent investment because of our fascination with precious metals’ aesthetic features and inherent value. Jewelry transforms elements that are already precious into something that is even more alluring to us. Thus, people acquire jewelry because of its intrinsic value as a precious object as well as its aesthetic appeal and fashion sense.
What makes jewelry investment a good financial decision?
A piece of jewelry’s value is determined by a number of factors, including:
Appearance
Gems and precious metals are popular everywhere. Over the centuries, people have used the gleam and flawless polish that may be obtained with gold and silver to demonstrate riches, exercise power, and conduct trade. Because we find these materials to be beautiful, we regard them as objects in and of themselves. Our obsession with precious metals is a fantastic investment opportunity for investors. People will want these materials now and in the future, especially when they are made into jewelry. This is so that we may show off our gold and silver and have people admire how beautiful they look.
Material
Yet it’s important to remember that not all jewelry is a wise investment. Make careful you only purchase genuine gold and sterling silver when buying jewelry from reputed vendors. Only genuine gold and sterling silver are regarded as reliable investments, despite the identical appearance and distinctive qualities of other materials like plated silver and steel. This is due to the fact that they are durable materials that have lasted the test of time and do not corrode, not merely because of social standards and tastes. Jewelry that has been fashioned into a lovely design, like sterling silver cross necklace, is often worth much more than the market metal price as well.
Rarity
A piece’s value is more likely to rise over time if it is rare. This is also true when it comes to vintage jewelry like unique vintage rings. Depending on which years you’re referring to, jewelry houses have had different owners over the years, thus the designs and craftsmanship may alter. The history of a work is another element that affects rarity. Was a famous person wearing or owning it? This could affect the selling price. For instance, Christie’s auctioned Elizabeth Taylor’s complete jewelry collection in 2011 for $115 million.
How to make jewelry investment
There are two methods for purchasing jewelry. As a “defensive asset,” one is used, and as a business opportunity, the other.
Store of value
Because jewelry is made of precious metals, it is regarded as a store of value by many modern investors. This indicates that gold, silver, and other more valuable metals tend to remain high, or even rise, when the value of money decreases. So, investing in gold and silver jewelry is a means to hedge against currency depreciation by “keeping” your wealth there. It is possible to witness your investment increase in value because jewelry typically increases in value over time.
Selling in bulk
Taking advantage of the widespread attraction of gold and sterling silver jewelry is the more rewarding approach to invest in jewelry. This entails finding fine jewelry that will consistently sell to customers all over the world. Retailers have the opportunity to purchase gold or sterling silver jewelry in bulk at a significant discount by purchasing wholesale. They can then be profitably resold to the broader public through a physical location or online business.
Jewelry is a safe investment option in contrast to other business ventures. Humans have always desired gold and silver jewelry and will continue to do so. Stock purchased now won’t lose value over time. In fact, it probably will.
Precious stones
Diamonds are sometimes said to as a person’s closest friend, and with good reason. High-end jewelry from reputable designers typically retains or even increases in value over time. Consider the Oppenheimer Blue diamond. The Pink Star diamond, which sold for $71 million at Sotheby’s in 2017, eclipsed the price of this famed blue diamond, which had previously sold for $50.6 million at Christie’s in 2016. A smaller dark grey-blue diamond sold for $6.8 million in 2018, while a larger blue diamond fetched nearly $57 million at a Sotheby’s auction in April.
Collectors are just as enamored of other gemstones, such as Kashmir sapphires. The highest price ever paid for a Kashmir sapphire was $7.3 million, which was paid for an unusually big 35.09 carat ring at Christie’s in 2020. On auction websites, other forms of jewelry, like a Cartier bracelet or diamond ring, can fetch thousands or even millions of dollars.
Bottom line
Of course, the market caters to specific types of collectors, and both investing and fashion trends do fluctuate. Hence, even though a Tutti Frutti bracelet would fetch millions today, it might become obsolete in the future. Jewelry investment has risks, just like any other investment. A fine piece of jewelry, however, can be worn as a family treasure for years even if its value decreases, unlike equities.
