Is it worth investing in jewelry?

Is investing in jewelry worth it? This question is very common among those who are looking for the best form of investment and diversification of their assets . It is not enough to buy a piece of jewelry to be able to say that you have made an investment and although it is true that even if you wear it, a jewel does not lose its value, it is always good to be clear about the objective of the investment and the risks associated with it. In this article we will explore the pros and cons of investing in jewelry and some of the most common investment alternatives. Continue reading!

Is investing in jewelry complicated?

Investing in gold or other precious metal jewelry is more complex than it may seem. The success of the purchase is often related to the choice of the dealer you decide to rely on. In order to purchase jewelry safely, it is important to turn to trained and trusted personnel . This serves to ensure the quality and authenticity of the precious item and a purchase price consistent with the average market value.

Gold jewelry is the most popular investment, compared to platinum and other precious metals. However, silver should not be underestimated and is considered, like the yellow metal, a parachute against inflation.

Often the value of a jewel does not correspond to the value that, for the same weight, could reserve for example an ingot. This is due to its purity , which will rarely touch 100%: jewels are in fact composed of precious metals and other alloys that regulate their ductility and final aesthetics.

In this regard, it is therefore necessary to distinguish between tangible value , i.e. the value deriving from the metal and its purity and/or from any precious stones, and intangible value , which is the brand value/historical value.

Investing in Jewelry: Precious Metal Value vs. Artistic Value

As mentioned above, the tangible value of the jewel is nothing other than the value of the material present in a more or less significant quantity within the precious and that composes it. It may be that our jewel is made of gold (or partly of yellow gold, rose gold or white gold ), platinum and/or enriched with precious stones such as rubies, emeralds, diamonds. In all these cases we will proceed by evaluating the weight and value of the individual components and the final price will be dictated by the sum of the price of the raw materials on the market.

The intangible or artistic value is another thing. It is determined by factors such as the manufacturer of the jewel, the date of creation, the more or less limited edition . A jewel born from the mastery of an internationally renowned master goldsmith will certainly have a higher value than a similar one created in series. As these elements come into play, the future evaluation of the jewel will become increasingly complex and will be subject to factors such as the socio-economic context, the historical period, etc. Not only that: it will be the competence and honesty of the person examining the jewel that will give it the value it deserves. Many owners of jewels have given away rare pieces , selling them valued by weight . All this because they were unaware of the artistic value of their asset.

Jewelry Safety: How Do I Protect My Investment?

Some people don't think about it at all, but keeping investment jewelry could be risky. Jewelry can be worn or stored in a safe or a deposit box . We could choose to keep our jewelry comfortably at home to wear it whenever we deem it necessary. In this case, the costs will be higher if we consider the fact that, in addition to the safe, we may need a good alarm system . Finally, it will be advisable to have insurance to avoid unpleasant episodes that could compromise the entirety of our capital.

These considerations are a precaution that should not hinder the desire to purchase investment jewelry, a versatile asset capable of satisfying the impulse to own something aesthetically beautiful and valuable.

Alternatives to investing in jewelry

Investing in jewelry as we have seen has several pros and cons: on the one hand there is the pleasantness and usability of the asset as well as the diversification of capital, on the other hand the risks associated with conservation and an underestimated valuation. But what investment alternatives exist on the market?

Investing in jewelry vs. investing in gold

As we have seen, jewels can acquire value over time if they are unique pieces, with a particular design or history behind them. On the other hand, they can be subject to market uncertainty and this can make it difficult to predict. the future trend . Gold is a highly liquid asset, investing in gold and silver will therefore guarantee a conversion into easier and more immediate money.

Investing in Jewelry vs Precious Metals

Investing in jewelry offers diversification, which means: reduced risk. The need to secure the asset can however affect the profit margin . Precious metals have an intrinsic value deriving from their possible rarity and applicability in different sectors. Investing in precious metals means having an asset that does not undergo changes in trends and fashion that could affect its value.

Investing in Jewelry vs Diamonds

Jewelry can have a high purchase price , which can reduce the potential profit due to the sales and purchase commissions . However, their tangible value (derived from the precious metals that compose them) and artistic value (the history, the exclusivity, the brand) together could guarantee greater security than the diamond alone. The scarcity and the generally stable demand of the diamond, however, makes this asset very inviting.

Learn more about investing in diamonds .

Investing in jewelry vs watches?

Jewelry, like watches, can be displayed and often represent a very attractive asset for investors. A carefully chosen piece of jewelry can increase in value over time and become an asset to be passed down from generation to generation. Watches also offer these benefits, however, if you decide to invest in Rolex or other branded watches, you must take into account the periodic maintenance necessary in order to maintain their value intact over time .

Conclusions on investing in jewelry

In conclusion, whether you are buying investment jewelry or other precious metals and objects to use to diversify your capital, you should always rely on expert and competent professionals : thanks to their technical and sector knowledge , they will be able to indicate safe and functional investment solutions to guarantee the best results over time .

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