Is Fine Jewelry A Good Investment?

Over the years, the increasing array of investment options has made it easy to build a portfolio or diversify an existing one. It may be time to expand yours if you want something other than conventional options such as stocks.

Investing in something new is easy if you have money to spare or disposable income. Among the choices available nowadays, fine jewelry may be worth checking out.  

If you have doubts about jewelry as an investment option, note that it’s not referring to jewelry pieces you find in malls but high-quality ones from jewelers.  

It’s essential to learn everything there is to know about investing in fine jewelry before locking in. Here’s a thorough breakdown.

A Close Look At Fine Jewelry 

Fine jewelry is made of high-quality metals, usually gold, platinum, or sterling silver. Most pieces boast pure stones such as diamonds, sapphires, rubies, and emeralds. Wearing a piece made of a combination of these things is something to be proud of. But it’s also a worthwhile investment that can grow in value over the years.   

Some fine jewelry choices worth adding to your investment portfolio include gold, platinum, diamond, pearl, and gemstones.

Among these, diamonds may be the best. These can withstand inflation and other economic turmoil. If you want a worthwhile option, it’s crucial to go for a piece with the highest carats, cuts, color, and clarity.  

Meanwhile, gold has always been a favorite metal throughout history. It makes gold fine jewelry a good addition to your investment portfolio. Regardless of the pieces you have, you have the option to melt them down and transform them into a coin or bar. The best ones to invest in are those with 14 carats or higher. These make for good reasons should you invest in gold jewelries soon.

Reasons To Invest In Fine Jewelry 

Investing in fine jewelry may be a wise decision to diversify your investment portfolio and ensure it grows further. It’s unfortunate that few people see its potential. But that means you have lots of points of entry when you’re trying it out. 

If you have doubts about investing in fine jewelry, here are several reasons that make them a worthwhile, long-term investment.  

No Depreciation Of Value  

One of the main reasons to add fine jewelry to your portfolio is the individual potential of its components.  

For example, both gold and platinum are considered limited resources, meaning their overall value increases over time. If you remember the price you paid for a high-quality diamond ring a few years ago, you’ll find that it’s cheaper than it is today. That should come as no surprise. 

If the price range of top-grade fine jewelry is way beyond your current budget, you still have many options. Just don’t buy pieces at department stores or malls. Instead, turn your attention to well-appraised pieces at affordable prices, such as those in second-hand stores, pawnshops, local auctions, and online.   

The authenticity of the piece is also worth considering. If you want to avoid ending up with fake pieces, you should research ways to determine how genuine they are. Preferably, work with trustworthy vendors in the first place.

If you intend to sell your pieces, set them aside first. The longer you hold onto it, the more value it has once you decide to sell it.

Versatile Selections

Another good reason to invest in fine jewelry is the variety of options you can choose from that fit your budget. 

The best place to start if you have a small budget is to purchase small pieces, such as sterling silver or gold bracelets and earrings. If you can afford more, go for high-end pieces, such as a diamond ring or any piece with precious stones.

An advantage of jewelry is its tangible nature; you immediately have it at your disposal. Depending on what you have, you can incorporate them into your ensemble for a touch of class or put them on display.

Readily Convertible To Cash 

Many prefer to invest in properties or vehicles due to the big returns they provide. Sadly, most require a significant investment upfront. When you decide to flip them in the future, it can take time to sell if you need cash.  

Although you can sell your jewelry pieces easily, you may get less, unlike with other investments such as vintage vehicles. This is because gold and diamonds have a market value regulated around the global market.

Knowing this, make it a priority to appraise your pieces properly for the best value. Start by consulting a reputable appraiser. They can create a comparison outline with similar jewelry available to decide on a fair price.

If you need to convert your jewelry into cash, you can take your pieces to a pawnshop for a good sum. Another option nowadays is to sell your pieces online. Again, for the best value, make sure you get them appraised properly.

Diversify Your Portfolio 

As mentioned earlier, if you want to diversify your portfolio, fine jewelry is the next best option. Setting aside some of your earnings into investments will pay off big time, even if you just started. But to make the best out of them, you should put your money into different places. 

Avoid making impulsive decisions by pouring all your hard-earned money into risky investments such as cryptocurrency. Instead, go for something solid. Even if you’re maintaining a conventional portfolio of stocks or real estate, you should also invest in fine jewelry. Doing so will help balance out your selections. It’s because precious metals such as gold or platinum are considered to have a stable value, making them suitable as long-term investment options.

Portability And Easy Storage 

Fine jewelry pieces such as rings, bracelets, necklaces, and earrings are easy to store and carry with you wherever you go, unlike other forms of investments. This portability and easy storage make them a good asset. 

When it comes to the storage aspect, you need to put in a lot of thought and care. This matters if you’re investing in high-end pieces. Depending on which ones you have, you should invest in secure storage systems to prevent theft, vandalism, and damage from scratches and unforeseen incidents like fires.

If you have a few diamond pieces, make sure they don’t scratch one another. It’s a usual concern you can easily fix by storing each gem separately. 

Timelessness 

Among the various items you collect over the years, jewelry pieces tend to last the longest. It’s why you see them getting passed down for generations.

Indeed, the timelessness of fine jewelry is another feature that makes it a worthwhile investment.  

If you have received a diamond stud earring from your parents, it’s natural that its value has increased since the last time you had it appraised.  

Other forms of investment, such as vehicles, fall apart within a decade. Only jewelry can endure time and maintain its original quality. 

Consider investing in classic designs if you want your fine jewelry pieces to stay in style. If you want to freshen them up, you always have the option to adjust the setting with a professional jeweler. 

Due to their permanent value, you can easily pass down your pieces to future generations, knowing they, too, can make get much out of them as assets.

Important Considerations When Purchasing Fine Jewelry 

Once you’re ready to diversify your investment portfolio with fine jewelry pieces, the first thought that comes to mind is where to buy them. 

The first and biggest obstacle lies in determining how genuine the pieces are. Here are several pointers to remember to ensure you’re investing in the right ones. 

• Visit a reputable jeweler: Always buy pieces from accredited jewelers. These establishments should have licenses and permits to sell high-end jewelry.
• Always have a comparison outline: Even if you find a good-quality piece from a jeweler, avoid the urge to buy immediately. Research online to determine if the value of the piece you’re interested in is the same as in other jewelers. Doing so will save you the trouble of overpaying for a piece you can get at better prices.  
• Scrutinize the jewelry piece: Take a close look at what you plan on buying. Check the quality and its overall condition. Watch out for any looseness in the embedded stones or any discoloration or scratches on the surface. It’s crucial to look for these before buying to ensure you’re getting an item with the highest level of quality. 
• Look for an engraving or mark by the designer: You may have seen a designer’s engraving or mark if you have bought jewelry before. It can be their name or the date of its creation. Its presence is a straightforward way to confirm the authenticity of the piece. Fake pieces lack any form of engraving on them. 

Ready To Invest?  

Diversifying your portfolio may be something to consider if you want to maintain a good track record with your investments. One of the ways to make this happen is by investing in fine jewelry.

You can start with a few small, high-quality pieces before going for pricier ones in the future. Remember that their value tends to stay the same, increasing steadily over time. Due to this, you always have the choice to sell it in the future at greater prices to regain what you have invested several times more. Consider it a win-win strategy.