Unique, high-quality jewelry has always been a symbol of wealth and status in cultures worldwide. Today, though, it can be much more than that. While investing in distinctive jewelry pieces may not be as popular as investing in stocks, bonds, or real estate, jewelry is, without a doubt, a worthwhile tangible asset with great potential to appreciate over time. For a financially savvy woman, this should mean one thing – it’s time to grow that jewelry collection.
On a more serious note, investing in luxury and rare jewelry can indeed be much more than just an aesthetic indulgence – if done correctly, it can be a path to financial independence. But how do you go about it the right way?
Lucky for you, that is the exact topic of today’s article. Below, we cover everything you need to know about investable jewelry, including how to choose the right pieces to invest in, build a versatile collection, and more.
Jewelry: Is It Really a Good Investment?
So, to cut to the chase, yes, jewelry can be a good investment, but only if you pick the right pieces to invest in. We’ll talk more about how to assess quality and authenticity later, but for now, let’s focus on why you might want to invest in some luxury pieces in the first place.
Rare, distinctive, antique, or luxury jewelry possesses several characteristics that make it a worthwhile investment option. Here are some of the most important ones:
- Tangible Asset: Unlike stocks and bonds that exist only in digital form, jewelry is real, a.k.a., it’s a tangible asset that you (and others) can physically possess and enjoy. This matters because something that has a physical nature tends to be less susceptible to market volatility and economic downturns.
- Intrinsic Value: Some luxury items, such as cars, various electronics, and even some expensive purses and bags, do not retain their original value over time; cars, for instance, lose 20% of their value just in the first year of ownership! Precious metals like gold and platinum, as well as gemstones like diamonds and sapphires, on the other hand, have enduring worth thanks to their rarity and desirability.
- Historical Performance: Speaking of the desirability of precious metals and gemstones, it’s good to remember that throughout history, this type of jewelry has consistently outperformed inflation and delivered attractive returns to investors. Over the long term, luxury jewelry actually appreciates in value, unlike many other investments.
- Portable and Discreet: Another great thing about jewelry as a form of investment is that it’s portable and discreet, making it an ideal store of wealth for women seeking privacy and security. And, unlike real estate and other tangible assets that need extensive paperwork, jewelry can easily be transported and stored without attracting undue attention.
Choosing the Right Pieces to Invest In
Okay, let’s say you’re convinced and want to invest in quality jewelry to secure your financial future; where do you start?
First off, what you want to pay attention to the most – aside from quality and authenticity – is the uniqueness or rarity of a piece. In essence, the rarer a piece of jewelry is, the higher the likelihood that it’s going to appreciate over time. If you’re just starting your collection and are not sure where to begin, we recommend investing in quality pieces you know you’re going to get a lot of use out of.
For example, if you have a special occasion coming up, such as an engagement or some milestone celebration, it’s a good idea to invest in a high-quality, distinctive piece that will not only look gorgeous on your finger, but also hold intrinsic value as a tangible asset. If you’re not sure where to look, we recommend checking out unique engagement rings from Barkev’s, as they have an extensive offer of top-quality pieces at reasonable prices.
In any case, when you’re just starting out, we advise investing in quality pieces that you actually like. Don’t buy something just because it’s antique or looks super-unique! After all, if you plan on wearing the pieces you buy, you want to wear something you like and that makes you feel more confident in your style and presentation.
But let’s zoom in on the specifics: what factors should you consider before investing in jewelry?
Quality and Craftsmanship
The No.1 thing to look for in jewelry is quality and authenticity. You want pieces that are made of high-quality precious metals with superb craftsmanship. But that’s not all – you should also obtain jewelry certifications for particularly valuable pieces from independence and recognized gemological laboratories.
You should also pay attention to hallmarks, signatures, and documentation, as they can significantly impact the piece’s value.
Diversification
Every wise investor has a diverse portfolio, and you should be no different. To maximize potential returns and minimize risk, spread your jewelry investments across different categories and styles.
For example, while it’s a good idea to “specialize” in particular jewelry, such as antique pieces, it’s still a good idea to diversify your collection by investing in some more modern luxury rings or investment-grade gemstones. Collectible pieces are also worth investing in.
Market Trends and Demand
Before you invest in any piece, take some time to educate yourself about past and current trends and demand patterns within the jewelry industry. For instance, while investing in gold is practically always a good idea, certain categories of jewelry, such as vintage pieces or designer brands, may experience fluctuations in popularity and resale value over time.
So, take your time, do your research, go slow, and you’ll be much more likely to make smart investment choices.
Long-Term Perspective
While unique jewelry can offer excellent returns, it’s important to adopt a long-term perspective. What we mean by this is that you should think about the future when investing; resist the temptation to buy and sell hastily and instead focus on acquiring pieces that have enduring value and appeal.
At the same time, have an exit strategy in place for all your pieces, whether you plan to sell them in the future or pass them down as heirlooms.
Closing Thoughts
Investing in luxury and unique jewelry pieces can indeed lead to a better, more secure financial future. But this is true only if you invest wisely. The good news is, with careful research and planning, practically any woman can learn how to choose pieces that appreciate in value over time and build a successful jewelry investment portfolio that aligns with her financial goals and aspirations.
