INVESTING | 3 Reasons Fine Jewelry Is - and Isn’t - a Wise Investment
Precious metals and rare gems continue to increase in value, making an investment in fine jewelry enticing for some.
Following are a few reasons jewelry can be a wise investment:
Jewelry is portable. You need nothing more than a safety deposit box to secure its value.
Jewelry is tangible. Unlike stocks, bonds, and other market investments, you can hold value in your hand. For some people, this security makes the risk of investment worthwhile.
Fine jewelry can retain its value. Based on recent trends, the price of precious metals and gems is likely to continue its uphill climb; as a result, the price of fine jewelry will also increase.
Following are a few reasons why jewelry may not be a wise investment:
You already paid more than its value. When you buy jewelry from a retailer, it’s likely that it was marked up quite heavily; if so, you already have more invested in the piece than it is worth.
Quality can be deceiving. A great deal of fine jewelry is mass-produced, and other pieces have less precious metals than you might imagine.
The market moves at a slow pace. Compared to other investments, the market for jewelry is relatively small. As a result, selling even the most valuable pieces relies on the timely interest of a buyer or two.
So that brings us back to the original question: is fine jewelry a good investment? It is, and it isn’t. Most people buy and hold jewelry for personal use and enjoyment; others look for investment value in each purchase.