Investing in jewelry has become more frequent in the Western world. Some are looking for diamond or moissanite engagement rings for romantic reasons while the others are simply looking to diversify their investments. A substantial portion of the market is being moved by men interested in more portable ways to shift their investments. In an unstable market, small and easy-to-carry gems always become more popular than much heavier gold bullion. As the market has shifted from gold and metals to diamonds and valuable gems, it’s clear that gems are now increasingly seen as investment vehicles that retain a good store of value.
Naturally, the first impulse for anyone new at investing in jewelry is to run to the jewelry store. This may be the fastest way to approach it, at least without some careful considerations first. Smart investing in jewelry means understanding why it’s increasingly valuable and avoiding simple mistakes.
Jewelry Starts at a Markup
According to a jewelry expert like the ones on Toner Jewelers store, the first thing to remember about investing in jewelry is this: jewelry, which has its strongest value in its constituent gems, is always at a markup approaching or exceeding 100 percent, when you buy jewelry at retail, you’re buying at a loss. This is an extremely important thing to consider. Estate jewelry can often be purchased for far less and closer to cost. Buying jewelry new is buying into a long-term investment. More and more people buy solid silver bangles for women as an investment and for everyday wear. It will take a much longer time to get your money back based on simple retail values, so it’s much smarter to buy from a reputable dealer who knows the difference between a jewelry buyer and a jewelry investor. The first key thing to remember is simply investing in jewelry means purchasing it closer to its investment value.
It’s Not About the Metals
The next thing to remember about buying jewelry is that it is not about the metals, it’s about the jewels. This is often lost on jewelry buyers, who focus on solid 18K gold casings for their diamonds. The reality is that the precious metal used is extremely thin and light. With metals down, any investment in jewelry (unless there are no gems whatsoever) has to make metals a secondary concern. With the average earrings set weighing 10 grams with 18k or 14k gold, there’s usually more to be made in the jewels that the earrings encase. The meltdown metals value of jewelry is often substantially lower than expected, so don’t focus on it. If you’re trying to buy jewelry for its metal value, it’s better to save money and simply buy coins or bullion at 5 to 10 percent over spot.
It’s About the Jewels
With the above in mind, the new investor knows where to focus on jewelry. Those with a historical focus (purchasing historical jewelry) will be able to spot pieces that are worth more based on age and era. However, that takes a lot of time and study. Focusing on the gems, the real vehicle for investment today, will make the difference between a successful jewelry investment and an unsuccessful one. Often, investors are interested in custom jewelry pieces like diamond earrings, necklaces, rings and bracelets. However, there are investors will look for loose diamonds, diamonds that haven’t been used yet in jewelry production. Reputable dealers will often have loose, stunning diamonds for sale that will serve well as investment vehicles and even the occasional gift. Consider buying one of these jewler’s loupes as a gift or investment.
