The Definitive Guide to Buying Jewelry as Investments


When it comes to investments, some can reward you with high returns, while some aren’t that profitable in the long run. Jewelry belongs to the first category for various reasons. With jewelry, you have a tangible investment that can fulfill different purposes in your life.

You get to wear it, enjoy it in all its splendor, or pass it on to family members. Yet the best part about jewelry as an investment piece is that its value increases with time, whereas other major purchases, such as a car, depreciate as soon as you start using them.

At present, the jewelry investment market is worth billions of dollars. In China alone, retail sales of gold, silver, and other jewelry items reached 23.58 billion yuan (roughly $3 billion). And given the uncertainty in many economies globally, you can expect more and more people to put their money where they can see it grow – in their jewelry collection. If you’re looking in this direction as well, let this infographic guide you through the ins and outs of jewelry investing.

The Definitive Guide to Buying Jewelry as Investments Infographic

 

How Is the Global Jewelry Market Doing?

Fancy going into the jewelry market as a buyer-investor? Globally speaking, the numbers are encouraging. Based on the numbers gathered from all over the world, jewelry sales are going up year after year. It’s a very noticeable trend, especially since many global currencies are depreciating in value due to unstable economies. People are finding jewelry as an attractive investment alternative because, unlike cash, jewelry appreciates in value over time. Those sparkling pieces in your jewelry box serve as assets that can be liquidated if and when you want to.

Also, the internet now makes it easy for jewelers to find a market that they can sell to online. In fact, industry forecasts from Orbis Research say the global online jewelry market may grow at 15.69% compound annual growth rate from 2018 to 2022. This also means you’ll have many choices when shopping for premium jewelry pieces, and it’s up to you to look for the best deal with jewelry e-retailers.

 

Top Reasons to Invest in Jewelry

For many people, jewelry is priceless – whether it’s the monetary value or emotional attachment that they get from owning or wearing jewelry. But what exactly makes it a priceless form of possession or investment?

The precious, high-quality metals and gemstones (such as gold and diamond) that are used to create jewelry pieces are expensive. This makes the finished product equally pricey, so it would be justifiable if you were to set a high selling price for your collection if you ever put it up for sale. And if your item came from well-known jewelry stores or crafted by top artisans, you can command an even higher price at the resale market.

Jewelry pieces can also withstand the test of time. To begin with, many jewelry pieces are made of durable metals, such as 14K gold, platinum, and titanium, so they can last for years and still look as good as new. Perhaps this is the very reason why jewelry pieces become family heirlooms that even those at the bottom tier of the family tree get to own and treasure. It also helps that you only wear jewelry during special occasions, so they don’t easily show signs of wear and tear unlike other fashion accessories that you regularly use.

Jewelry pieces can be refashioned to create new items. This versatile feature of precious metals keeps the value of your jewelry pieces intact, which makes them great financial assets. Special mention goes to diamonds, especially the high-grade ones that are much coveted for their exceptional size, clarity, and almost flawless appearance.

Jewelry symbolizes power and prestige. Celebrities, socialites, royalty, and other high-profile personalities – they all love accentuating their outfit with fine jewelry to highlight their rich-and-famous stature, not to mention that it helps them make a stronger fashion statement. Fashion magazines also often photograph their models wearing expensive jewelry

Let’s not forget that possessing jewelry stirs up a special sense of pride and joy, knowing that you were able to add such fine pieces to your collection. Some of your jeweled pieces might have been given to you as a present by your loved ones, but it doesn’t change the fact that you will never trade that kind of treasure for money, come what may.

 

Dos and Don’ts of Jewelry Investing

Buying jewelry for investment can be a good move if you’re privy to these things:

It’s better to go for classic pieces than trendy ones. Fashion houses often team up with jewelry designers to create a trendy jewelry collection for different seasons, but that makes their shelf life quite limited. They may be hot today, but they can easily go into oblivion the moment a brand-new collection comes out the following year or season. By contrast, the beauty and value of classic, timeless pieces are far more lasting.

You need to carry out intensive research before investing in jewelry. There’s a whole lot more to buying jewelry. But, it helps to buy pieces that suit your personal style so you get to enjoy them, too, prior to selling. However, if your purpose for buying jewelry is largely to diversify your investment portfolio, then you should consider factors that relate to its monetary value. These may include the kind of metal used, the stone’s size, weight, cut, color, and setting, or the source of materials, to mention a few. Knowing these things will help you determine if you’re paying for something that will give you high returns later on.

You should ask your seller for authentication certificates. Paying huge sums of money for jewelry should come with a guarantee that you’re getting the real thing instead of some shady knock-offs or replicas. You’ll want to make sure, for example, that the diamond on your engagement ring is genuine or is free from damage. Legitimate sellers will have no problems providing you with a certificate of authenticity or a diamond grading card, which will describe the characteristics of the diamond you have on hand.

It’s important that you get insurance for your jewelry pieces. You owe it to yourself to protect your most treasured possessions for the money and emotional bond you’ve invested in them. Insuring your fine jewelry collection can help cover the costs of losing your jewelry due to theft, accidents, and other unfortunate circumstances. Of course, you should also consider investing in a high-quality safe where you can store and protect your most prized pieces.

Know how to negotiate. There are a couple of ways to get a better price for your jewelry. Either you buy secondhand jewelry from someone who bought it from a retailer, or you haggle on the price being offered by jewelry stores. You only need to be familiar with negotiation techniques that are more likely to work with your jeweler.  

You cannot let your emotions get the better of you. Before purchasing a piece of jewelry, make sure you’ve done enough due diligence as described above. Resist the temptation of bringing home a diamond earring or gold band that you spotted right there and then.

You shouldn’t ignore the security aspect of investing. Expensive jewelry is already conspicuous as it is, so do all things possible from your end so that you don’t attract the attention of unscrupulous characters. Consider safekeeping your collection in highly secure places instead of keeping them in easy-to-access areas around your home. When meeting jewelers for important transactions, make sure to choose a safe meeting place where there’s enough security personnel from whom you can ask for help if you sense any danger.

 

Your Jewelry, Your Investment

You can be rich in many ways when you invest in jewelry. Jewelry brings with it not just financial rewards but also other intrinsic value that’s too precious to put a price tag on. Miladay, a leading jewelry store in the Philippines, offers a wide variety of the finest jewelry items that are worth investing in.