Jewellery has always been an object of desire and has been considered a status symbol for centuries. Did you know that more and more people are investing in earrings, rings, or pendants? In the following article, we will give you the keys to knowing if it is worth investing in jewellery. We will tell you about its advantages and disadvantages and explain how to start investing and where to find solid opportunities in the world of precious stones.
Why Invest in Jewellery?
Lasting Value
Jewellery, especially those with precious stones such as diamonds, sapphires, and emeralds, has been shown to maintain its value over time. Unlike some assets that can depreciate, well-chosen can increase in value over time. Plus, they are great collector’s items. You do not have to think of them as just investment items, they are also great collector’s items that can complete your wardrobe as well.
They Have Legal Protection
It is essential to have a certificate of origin to determine the legality of the transaction and to be certain that it is an authentic jewel without having to examine it thoroughly.
Portability and Liquidity
Jewellery is a portable and easily transferable asset. In situations where mobility and liquidity are essential, such as in an economic crisis, jewelry has become a trendy choice. It is well known how many years ago, during wars or large mobilizations, families took jewellery with them to sell in new lands and establish themselves in that new country.
Family Heirloom
Investing in jewellery can also have sentimental and emotional value. Family pieces passed down through generations not only have financial value but also represent family stories and legacies. Great evidence of this is found in royal or aristocratic families. There are pieces of jewellery that have been passed down from generation to generation, becoming precious items.
Portfolio Diversification
Investing in jewellery can be an effective diversification strategy for those looking to balance their investment portfolios with tangible assets less affected by market fluctuations. Every investor knows how crucial it is to diversify, as the value of assets often fluctuates depending on the time or social or economic situation. There are times when real estate has taken a nosedive or cryptocurrencies, and in those times jewellery can maintain its value.
Advantages and Disadvantages of Investing in Jewellery
Advantages
Stable Value
Rare and high-quality gemstones usually increase their value over time, acting as stable assets even in economic uncertainty.
Status and Prestige
Some jewellery, especially those made by exclusive designers, can acquire a certain status as well as prestige, which increases their value, both financially and socially.
Growth Opportunity
Demand for certain jewellery, such as gems, can increase over time due to their rarity and beauty, an opportunity for growth in the value of the investment.
Disadvantages
Market Fluctuations
Although jewellery may have a stable value, the market is very prone to fluctuations, especially in times of economic crisis.
Maintenance Costs
Jewellery requires care and maintenance so the costs associated with cleaning, repair, or insurance should be considered in the investment.
Subjectivity of Taste
Jewellery is often valued based on personal preferences and fashions. That can affect its attractiveness and market value.
How to Invest in Jewellery
Keep these tips in mind when starting to invest in jewellery.
Education
Before investing in jewellery, it is crucial to be informed about gems, metals, and market trends. Knowing how to identify quality and authenticity is essential.
Investment Evaluation
Determining whether you are looking for a long-term investment, a collector’s piece, or something in between will help guide your purchasing decisions.
Working with Professionals
Consulting gemologists and jewellery experts can be a good idea for getting a more accurate evaluation of the pieces and ensuring an informed investment.
Certificates of Authenticity
As we mentioned above, this certificate is proof of the quality of the jewellery and is very important when it comes to avoiding possible scams.
Stamps that Guarantee the Purity of the Jewellery
These stamps guarantee the number of carats of the jewellery, that is, the purity of the metals that make it up.
Belonging and History of the Jewellery
The jewellery you want to buy, or that you already have in your possession, may have belonged to a famous or renowned person, a detail that can add great value to it and that could not be determined through an appraisal.
The Jewellery Brand
Finally, consider the jewellery brand when calculating its value, because depending on this, it may attract the attention of many investors and collectors. There are specific brands, such as Cartier, Tiffany’s, or Bulgari, whose jewellery will increase in value over time.
Types of Jewellery to Invest In
There is a wide range of jewellery on the market, which can be divided into two categories that determine the type of investment: according to its material or its age.
According to the Material It Is Made Of
A crucial part of the total value of a jewel is the price that the materials it is made of reach in the market, such as gold, silver, and precious stones. We cannot deny that its value will be closely linked to the number of carats it has, so it is advisable to invest in pieces with the highest percentage of purity in gold or silver.
According to the Age of the Jewel
Another element that you should consider when you start this type of investment is the age of the piece since it is much more profitable than investing in new jewellery. This is because this type of jewellery has more unique designs and exclusive manufacturing, which gives them much higher prices on the market. If you are looking for investment options, you can explore the Moissanite rings selection and buy one.
Conclusion
If you are looking for an asset to invest in that will retain its value, quality, and price over time, jewellery can be an excellent option. Get enough information and educate yourself on the subject so you will make the best purchase to invest your money.
