Is Jewelry a Good Investment Choice?

jewelries

People love jewelry. They are meant to look beautiful and to last a lifetime. The larger the stone, the more attractive it is; and the higher the carat, the more expensive it is. Many people have thought about investing money into jewelry collections to sell later for a profit. Here are some points that you might want to consider before you consider the same thing.

Buy It Because You Like It

This is likely your first thought when you’re looking to buy a diamond wedding band, and it should be when you’re thinking of purchasing jewelry as an investment. Once you buy one, it’s probably going to stay with you for a while. You should know how to maintain them and keep their brightness and weight. So, before you even buy a piece, see if you like it and if the design suits your personality.

Consider Metals and Gems

Let’s say that you still intend to buy jewelry as an investment. Which metals and gems are you going to consider purchasing? For many, the choices that will first come to mind are gold and diamonds. It’s reasonable, but it may not matter much, as trends change over time, and other stones may have their spotlight. Even if diamonds are considered expensive, the value of most jewelry depends on the following: the quality of the stone, the amount of gold, and the design and providence of the piece.

Ever-Changing Market

woman wearing earrings

You might have thought that since jewelry is a physical good, it is stable. But the market for jewelry is considered volatile. This is because demand is what dictates the price for jewelry, not quite the quality or even the size. Sometimes fashion and trends also dictate the style and type of jewelry that is valued. For example, in the Victorian era, pure white diamonds that had a different cut were popular. Their cut was based on how candle and natural light was reflected in the stone. These days, more people know that colored diamonds are rarer and so more expensive, and so the demand for them is higher.

Be Prepared to Sell at a Lower Rate

Yet another consideration is the depreciation of most material investments. While you can still get a considerable price for your jewelry, most would consider the providence and history of the piece too. For you to earn more, you would mostly have to wait for a buyer who is interested in your piece or buy a piece or collection that has a strong connection to a historic time or period.

In the end, while jewelry has typically a high value, you may be better off simply buying and keeping them for yourself. Purchasing a few as accessories and potential heirlooms won’t hurt. Also, if you want to expand your investment portfolio, explore other investment alternatives. Consider going into real estate, bonds or stocks. But you can still build a nest egg for when you retire. Save your money in the bank, and put some of it in an investment and you’ll be set for a comfortable life in retirement.

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