Jewelry investment therefore is the act of acquiring or investing in jewelry pieces usually crafted from precious metals for instance gold, silver or Platinum; or gemstones such as diamonds, emeralds and rubies with the belief that their value will increase over sometime in the future.
Despite this, the perfectly acceptable idea that jewelry is an ornament may be accused of lacking real value as an investment.
Tangible Asset: Jewelry is an object and tangible tangible item and can be carried around in a bag, pocket or held in the hand.
Value of Precious Metals: Gold, silver and platinum are valuable and can rise especially when there is a downturn in business or when there is inflation.
Cultural and Emotional Significance:
Jewelry has significant use and is mostly used as a means
of passing on from one generation to another hence being considered a Jewelry.
Liquidity: It is not very difficult to sell or pawn high quality jewelry
even in a country like India where demand for precious metals is still high.
Diversification: Jewelry can therefore be used to bring gene variation
in an investment portfolio as it can be used to balance various market factors.
High Markups: Fine jewelry sold in the market may cost a lot especially because
of the design and making, which may not fetch any sum when sold.
Volatility: There is always a possible to increase or decrease of
precious metals and gemstones price, and resale price can be different from the purchase price.
Limited Appreciation: Fashion trends, damages and time influences the jewelry making it not to be as easily saleable as pure gold or silver bullion.
Authenticity Concerns: Jewelry requires the genuine metal and workmanship,
so quality must be given careful consideration from a reputable store.
Storage and Maintenance: Covers also call for proper storage and
protection due to their delicate nature may easily get damaged
or even get stolen hence incurring other extra costs.
In investing on jewelry, you should not just think about an articles popularity,
you also have to consider its quality and value;
for example, gold products devoid of heavy decorations or even diamonds that contains clear certificated papers.
