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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.

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