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Jewelry is a Smart Way to Diversify Your Investments

The global gems and jewelry market is estimated to grow at the rate of 5.5% during the period 2018-2023 because of increased demand for branded and artistic jewelry, improved quality, expanded e-commerce sales, and bigger wedding budgets. If you are planning to expand your investment portfolio, jewelry may become a lucrative endeavor if you buy pieces and items smartly.

Know Your Metals

Before investing in jewelry, it is vital that you know something about metals. Rhodium is the most expensive metal followed by platinum and gold. However, rhodium is not an easy material to work with because it is hard. It is used instead in plating platinum and silver jewelry to produce pieces that are tarnish-resistant.

That said, platinum is a great material for jewelry because of its strength and resistance to discoloration. Diamonds and other precious gemstones set in platinum are high-value jewelries. Gold is also a predominant material for jewelry. However, the purity of gold in jewelry sold in most Western countries ranges from 14-18 karats, which is just 74-75% of gold. 24 karats are deemed pure gold or 99.5% of purity. Thus, when buying gold jewelry, it is important to look at the purity of gold as well as any gemstones in the piece, and the design of the trinket.

Jewelry And Time Periods

Putting your money in jewelry as an investment also requires that you know a thing or two about these objects. Know your time periods from the Art Noveau to the mid-20thcentury. Look at major design houses such as Cartier, Boucheron, Van Cleef and Arpels, and David Webb. For example, purchasing rare and signed unique pieces of jewelry can be compared to buying fine art. They will hold their value and appreciate in the future. Moreover, they are not only assets, but also something that will give you immense pleasure.

It is also critical that you get an insurance for your investments and assets. To do this, submit your pieces to a regular jewelry appraisal for an updated value of their worth. This is also focal in ensuring that you have the best market rates when it’s time to sell.

Jewelry Is A Long-Term Investment

Jewelry, as an investment, is not something that you do in weeks or months. Remember, finding good pieces requires intensive research. It does not necessarily mean that a signed piece is a fantastic deal. Design houses did not always produce great pieces, and there were also bad periods. What matters is that the jewelry you are planning to purchase is in excellent condition, authentic, and demonstrates a time period.

Jewelry is also cyclical, so there are ups and downs in the market. Riding out bad periods means holding on to your pieces and keeping them in pristine conditions. Purchasing jewelry as a short-term investment is not ideal. If you’re in it for the long haul, you’ll be highly critical of your purchases, consult experts, and build your network of contacts.

Investing in jewelry may not be as easy as it sounds, but having a great eye for detail, passion, knowledge, and the opinion of experts can land you a piece that will not only retain its value, but also appreciate.

 
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