If you’re looking to make a significant investment, while also gaining a wearable, beautiful (and often functional) item, then the world of jewellery might be hugely attractive.
Recent years have seen more and more people turn away from traditional investments, and toward more esoteric options like jewellery. It might be easy to see why. While you have a spare ten thousand pounds adorning your wrist, you’ll get more utility from it than if it had been tied up in commodities, cryptocurrencies, bonds, or stocks.
What Makes Jewellery an Investment Piece?
Certain sorts of jewellery are better stores of value than others. Generally speaking, it’s better to invest in a handful of high-value items than it is lots of cheaper ones. After all, you can only use and wear a few items at a time.
A number of factors help to inform the value of a given item. These include its rarity. When there are few pieces available, the laws of supply and demand tend to push up the price. Then there are the raw materials from which the item is made, and the craftsmanship that’s gone into shaping them.
In many cases, the name of the company responsible will be taken as a proxy for the quality of the item. If you’re selling a Rolex wristwatch, for example, then buyers will take it as a given that a certain standard of quality will be in evidence on the item itself.
It isn’t just watches that hold value, however. Diamond necklaces, bracelets, rings, earrings, and more modern wearable memorabilia might all store value in the same way.
Factors Influencing Value Retention
So, having established what makes a certain item valuable, we’re left with the question of how that value might best be preserved.
The reputation of a brand might wax or wane over time. Newer innovators might be generating excitement in the here and now, but in the future, these names might not be as resilient as more established rivals.
Certain materials, like silver, may need more regular care and attention than others. Gemstones might pop out of jewellery, too. More general swings in the market might also help to shape value. For example, during periods of high inflation, people might turn to jewellery to help protect their wealth.
The condition of the item, generally speaking, is very important. This is worth thinking about if you intend to wear the item from day to day. Think about how it will resist scratches and dents. Don’t wear it while you’re in the gym.
Tips for Choosing Investment Jewellery
With all of that said, which investment options might make the most sense for you? You’ll want to make sure that you’ve done your research, and that you have a deep understanding of, and enthusiasm for, the market into which you’re entering. That way, you might make more informed decisions.
It’s a good idea to look for established brands, and to prefer classic designs over quirkier, newer ones. That way, there’s less risk of your item falling out of style. Make sure that the gemstones you’ve buying are certified and genuine, and that you have sought the opinion of an expert appraiser. You can bring them along with you, if you intend to buy.
Jewellery can be an exciting thing to invest in – despite the risks. Get it right, and you’ll protect your wealth, while giving yourself a quality item you can wear whenever you like.