Jewelry can be all sorts of things, from an expression of caring, to demonstrations of wealth and power. Hundreds and even thousands of years ago, historians have confirmed that dozens of cultures from all over the world have used jewelry as currency at one time or another. Jewelry has always been an important part of most of those cultures. The trend of using precious metals and stones as investment remains to this day. If you’ve ever thought about using jewelry as a source of income, we can assure you that now is a great time to start. We’re not saying that you necessarily have to sell your favourite jewelry, but if you never intend on wearing something, you might as well make some extra cash instead of storing it for years or even decades.
For those interested in jewelry as a source of investment, some of these recommendations may be useful:
The importance of Quality. High quality materials are durable and are more likely to maintain their value over time. Always try to obtain a second or third opinion about the jewelry you are trying to sell or buy. Depending on the region where you’re at, the ratings for purity and quality may vary. As an example, many European dealers do not regard gold of lower quality than 18 carat as a precious metal, even though many American jewelers consider 8-, 9- and 10 to be very acceptable.
Smart investing. Whenever you choose to buy jewelry from a retailer you should keep in mind that it will lose a lot of its value almost immediately you walk out of the store. It’s very common for retailers to mark up a wholesaler’s price by a very large margin. A piece of jewelry that costs $400 the day you bought it, will probably sell for only $200 the next. It would then take decades for you to make a profit out of it. As a general rule, try to avoid buying from stores and pawn shops, especially at first when you’re still learning about the trade.
Fashion. As an investor, you should definitively be cautious about buying jewelry with contemporary designer labels. Season jewelry is rarely a smart investment choice. Such items may lose both their value once their trend is over. Always go for timeless designs or original pieces by reputable or young designers with low production costs.
As a final word, remember that will most likely remain a very popular type of investment, and will hold its value better than cash. With some careful planning you can easily make your jewelry a business or at least a solid source of extra income.