Is Jewelry a Good Investment? Here’s What to Know

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Jewelry

Did you know that in 2008, a British jeweler paid a whopping $23.4 million for the Wittelsbach-Graff Diamond? Or that in 2017, the Pink Star Diamond sold for $71.2 million at Sotheby’s in Hong Kong?

Is jewelry a good investment? Absolutely!

When you consider the amount of pleasure you derive from jewelry before selling it, this investment type represents an even bigger win-win. After all, you’re not going to wear gold and silver coins out in public. But you will wear online diamond appraisal rings, earrings, and bracelets, whether they’re anniversary gifts or family heirlooms.

Here’s what you need to know about investing in jewelry.

Think Long-Term Investment

What makes jewelry such an excellent long-term investment? The materials comprising it.

Gold, silver, diamonds, and other precious metals and stones grow in value over time. If you own pieces containing any of these elements, you’ll be able to cash in on this appreciation in value.

For this reason, think of items containing gold and other precious metals as long-term investments. Have you ever wondered what would drive families to part with heirloom estate jewelry? Ultimately, the right price.

In other words, the gold rings and earrings you’ve purchased over the years could be among the best investments you’ve ever made. Still not convinced? Consider how precious metal prices have skyrocketed in recent years, rising even during times of recession.

What’s more, you may wear these long-term investments for years to come and still reap the benefits of selling these items down the road.

Highly Portable Assets

For those who move around or travel a lot, relocating other investments, such as gold and silver bars, can prove a hassle. But jewelry remains one of the most portable assets out there. It’s even an easy asset to move across borders.

For example, moving cash from one nation to another can get complicated. It comes with a heightened risk of theft and can lead to fees associate with currency conversion. Instead, consider investing in precious gems that you can easily take with you.

What’s more, jewelry retains its value across the planet. And you can always rest assured that if you need to liquidate these assets quickly, it’s as simple as finding a private buyer or jeweler. For a long-term investment, luxury watches like Rolex GMT Master II can be a great investment.

A Mechanism for Versatile Investment

At this point, you may be interested in learning more about how to turn your love of jewelry into a lucrative investment option. And we don’t blame you!

After all, there are few more versatile routes for making extra money. Jewelry comes in a wide variety of options.

From contemporary jewelry to antique pieces, choose the jewelry style you prefer for best returns. Ultimately, there’s no limit to the type of jewelry you can choose to invest in. Whether you adore bracelets, anklets, rings, earrings, or all of the above, there don’t have to be limits to your jewelry investment style.

Independent Pricing Free from Regulations

If you’ve explored other investment options, you already understand that tight government control permeates every aspect of the market. For this reason, most investments are risky and difficult to make decent returns on.

But jewelry doesn’t fall within the confines of these governmental regulations. Gold and diamonds are independent, and prices work in a familiar pattern worldwide.

That means you’ll never have to worry about changing governmental regulations when it comes to your precious jewelry investments.

You can sell your pieces anywhere around the globe free of bureaucratic dictates, too. You can’t say the same for other investments like real estate.

Safe and Stable Investment

What’s one of the riskiest aspects of an investment strategy? Because of the nature of our global economy, prices for just about every commodity fluctuate in drastic and unpredictable ways. For this reason, it makes sense to invest in assets that remain stable.

What’s one of the most stubbornly consistent investment types out there? Precious jewelry. Even when fiat currencies such as the US dollar falls, diamonds and gold maintain their value.

For this reason, many investors have already turned to these assets as hedges against inflation. And unlike capricious cryptocurrencies that could impoverish you in a matter of 24 hours, precious jewelry retains its worth, no matter what’s going on around the planet.

Reduce Risks With Diversification

You don’t have to look very far into history to see examples of hard times and global economic failings. For example, when the real estate bubble burst during the Great Recession of 2007 and 2008, countless American families lost their investment properties and even homes.

Many were left destitute as investments evaporated in a matter of weeks. What’s the antidote to repeat episodes? Investment diversification.

That’s why you should diversify your portfolio through strategic investment in precious jewelry. Not only will you face fewer risks when investing, but you’ll also create a hedge against falling prices, even when economies collapse.

 

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