Investing in jewelry is quite different from investing in stocks, or even precious metals such as gold and silver. Unlike other luxury items such as clothes, shoes, cars, televisions, phones, computers, etc., jewelry does not eventually break down. Jewelry is a luxury item that never loses its value. In fact, jewelry will retain and even increase in value over time. Pricescope, a premier diamond and jewelry community, offers several reasons why investing in jewelry can be profitable. For one, there is a relatively less cost to selling an expensive piece of jewelry since the value rises as the seller’s margins come down. This is similar to real estate, except houses are replaced with diamonds and gems. Jewelry is a portable aspect of wealth, which is a plus for those who do not trust banks and would rather have their high-valued items with them.
What are the First Steps in Investing in Jewelry?
First, it’s important to find a reputable and honest jeweler who provides authentic pieces of jewelry. In addition to their authenticity and sterling reputation, they should also provide fair prices. The Houston Gold Exchange is a great place to find affordable engagement rings and custom jewelry. How to choose a professional jewelry appraiser, courtesy of Palagems.com, can assist with choosing the right questions to ask a potential jeweler. Also, The American Jewelry Institute offers appraisal and advice for buyers.
When is the Right Time to Invest in Jewelry?
One of the most important rules of investing is to buy when the market drops and sell when the market rises. According to Winship Wealth Partners, a financial planning and investment management firm, understanding the “buy low, sell high” strategy is the key to gaining wealth. This strategy holds true for jewelry as much as it does for stocks. As the gold and silver market drops, buying these pieces at a lower price than usual will help you avoid having to buy extras, such as precious stones. Pieces made from high grades of metal purity are the best types to invest in. They tend to retain their value longer and, when the market rises, they are worth more money. For other precious stones such as diamonds, the same rule of thumb should be used. If the cut is better, the value is higher.
What Types of Jewelry are Best for Investments?
Loose jewelry is easier to sell, so it’s beneficial to buy whenever possible. An example of loose jewelry is a diamond that a jeweler never set in a piece of jewelry. The Diamond Registry, the world’s most comprehensive diamond information and pricing platform, offers a guide on loose diamond education. The International Gem Society (IGS) gives some great tips on investing in gems, including having gems re-cut, polished, set, etc. to increase their market value. If you don’t possess the expertise in gemology, a list of recommended supplies and suppliers that may be able to increase the market value of gems are available through IGS.
How to Find the Worth of the Jewelry
According to Houston Gold Exchange (www.houstongoldexchange.com), getting jewelry appraised for insurance purposes as well as re-sell value is something that is essential to the jewelry investment process. Appraisals should be conducted every two years by qualified appraiser. Make sure to use an appraiser who does not buy or sell diamonds, as they are more likely to give an unbiased opinion, according to Forbes. A good appraiser will help identify market trends and can give a potential resale value.
In short, investigating selling options, having a realistic approach to selling, and being emotionally ready to sell will help close in on the reselling process.