Stocks and property are two investments we commonly know of. But the Internal Revenue Service also considers precious metals and gems to be collectibles. For one, many people invest in gold as it is deemed to be an attractive commodity with low risk involved, as we have seen in this pandemic-ridden economy.
Even the government allocates a larger share of its assets in gold. As of June 2020, the U.S. government was the leading gold holding country with 8,133.5 metric tons of gold reserves. Apart from gold, others also invest in diamonds and other precious metals and stones.
So why do people see jewelry as a valuable investment other than a fashion statement? Let us find out more.
Why Is Jewelry a Good Investment
It Is Easily Manageable
Jewelry pieces are mostly quite light and small. You can easily store, hide, and take anywhere with you your necklaces, bracelets, earrings, and rings. All you need is a dainty jewelry box or a safe, then you are all good. Unlike antique vases and designer handbags, jewelry is much easier to store and preserve.
Nonetheless, you do not store them mindlessly as they are valuable investments. Here are some tips on how you take care of your precious jewelry:
- Make an inventory
2. Utilize an appropriate container for their storage
3. Group similar items for convenience.
It Is Liquid
It is much easier to sell jewelry pieces than other investments, such as stocks, bonds, and real property. Furthermore, fees and costs for selling it are considerably cheaper as compared with other investment vehicles. In fact, gold is a sellable item anywhere in the world.
It Is a Timeless Statement
Jewelry pieces are tangible investments you can use and wear any time you are not yet planning on selling them. It can complete your fashion ensemble, making you look elegant, classy, and stunning.
Jewelry pieces also appreciate value over time. The heirloom pieces handed to you from your great grandmother could be worth many times more than it was bought in the day.
Investing in jewelry is not a skill you learn overnight. It takes experience, practice, and a particular eye for detail to succeed in this venture. But if you are interested in investing in jewelry pieces, here are some things you need to consider.
Guidelines for Choosing Jewelry
- Do Your Research First & Educate Yourself
Many people believe there are no risks involved in jewelry investment. But just like any other investment vehicle, there are plenty of risks involved. That is why educating yourself before venturing into this investment is crucial.
You need to understand the difference in markings, which brands are most highly-priced, and what stones and semi-precious ones are more valuable.
Furthermore, when you are buying jewelry pieces, you need to consider some factors. Try to ask yourself the following questions:
- What is the quality of the diamond?
2. Is the piece made out of gold?
3. Is it vintage or contemporary?
4. Do you like the piece?
- Invest in Items that Will Hold Their Value
Trendy jewelry pieces come and go, so you need to consider if they would still be worth something many years from now. Do not just jump on the bandwagon and purchase the latest piece.
Unless the item is made by a top jeweler or has high-quality gemstones, trendy jewelry can be risky. Opt instead to invest in classic pieces.
- Do Not Just Take the Seller’s Word
Don’t be swayed by how beautiful the piece is. Before buying an item, be sure to have its authenticity established. Though we would love to trust those with who we do business, keep in mind that there are plenty of knock-offs and replicas in the market. A lot of these fake pieces look exactly like the real ones.
If you like a piece and consider buying it, ask for a certification from the seller.
- Try Not to Be Emotionally Attached
It cannot be denied that some jewelry pieces are just magnificent. But if you are thinking of them as an investment, better put your head first instead of your heart. Do your homework first before finalizing the purchase. In the end, you will be thankful to yourself for holding back from making a poor investment choice.
- Keep It in the Down Low
Lastly, do not announce to the world that you are into jewelry investment. The last thing you would want to happen is to put yourself and your family at risk.
Keep a low profile and ensure that your valuables are tightly secured as you wait for the opportunity of turning them into a profit. Also, when selling jewelry as-is, opt to meet in public places and avoid providing personal details.
With these tips and guidelines, are you ready now to invest in jewelry?