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Can You Use Jewelry As An Investment?

Jewelry as investment The jewelry market is expected to grow between 2021 and 2026. Despite mandatory lockdowns and closures, sales are projected to pick up, given bigger disposable incomes and changing customer preferences for strong market growth. As people look to diversify their assets, the question that comes to mind is: can you opt to invest in jewelry to expand your financial portfolio? Is it a bankable investment that yields profitable returns?

Buying Jewelry For Investment Is A Meticulous Process

Purchasing fancy jewelry is easy. You simply find something that you like and buy it. However, when you’re looking at jewelry as an investment, you need to do a bit of research. For example, collecting vintage pieces is not always a smooth process because there are many pitfalls and issues, such as fakes and frauds.

If you’re building a fabulous collection, you want pieces that are worthy of your money, and that means finding unique pieces that aren't trend-led. Exclusive and curated pieces are hard to come by so you might also consider enlisting the help of an expert to tell you which ones are authentic and have the right papers. Provenance, condition reports, signature, and authenticity are some of the factors to consider before parting with your money.

Waiting For A Volatile Market To Settle

Jewelry as investment Changes in taste can affect how the jewelry market behaves. To illustrate, while global demand for diamonds reached a record high in 2017, according to a report by De Beers, worldwide sales fell in 2018 due to slower economic growth. The tumble shows the volatile nature of jewelry assets, with prices swinging in either direction. In addition, tastes are constantly changing, and while they can drive up the prices of certain pieces due to a surge in demand, the opposite can also happen.

Today, not only are diamonds popular investments, but gemstones are also in style. Emeralds, rubies, and sapphires have experienced strong prices in recent decades and even fetched record prices.

Thus, if you are holding assets that are not in high demand, it may take some time before you get your money back. Unfortunately, there is no clear guide as to whether you can reach an expected price when it’s time to sell, says Sotheby’s. Along these lines, you should buy jewelry because you love the piece and want to wear it. Buying it as an investment should be your next motive, and this is particularly true if there are no guarantees that you’ll get your money back immediately.

Jewelry investment can offer good returns when it comes to pieces that retain their value. It is vital to do your due diligence and research the types of jewelry that are profitable. Above all, buy pieces that you enjoy and like to wear.

Image Credits:Image 1: Photo by Carlos Esteves on Unsplash Image 2: Image by Steve Buissinne from Pixabay

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 18th February 2021.

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