Business
Should You Invest in Jewelry?
Did you know that the current price of gold per ounce is $1,700? You can compare this to the cost of gold in the year 2000 when gold was only $274.5 per troy ounce. This is an increase of 519% in the price of gold, making it an ideal investment.
Gold can be purchased as bars or jewelry, depending on your specific needs when investing. If you’re looking to wear your investment, then jewelry is the way to go.
So should you invest in jewelry? The answer is “yes”. Jewelry can be insured, is wearable, and often retains its value.
But what’s the best type of jewelry to invest in? From gold to silver and everything in between, the choices may seem overwhelming. Many people opt to invest strictly in precious metals, while others invest in gemstones. It all depends on your finances and what you’re looking to spend.
If you’re interested in learning more about investing in gold and other types of jewelry, then be sure to keep reading for the best information around.
Benefits of Investing in Jewelry
Investing is an excellent idea if you’re looking to put your money and begin to build your wealth. While savings accounts are safe strategies, they typically yield little return.
As an investor, it’s wise to diversify your portfolio. This reduces risk by spreading your assets out. It also protects against market fluctuations.
If you invest all your wealth in one company and that company closes its doors, you lose your investment. Diversifying your portfolio helps to protect your assets.
Jewelry is an excellent way of diversifying your portfolio. Gold, silver, and diamonds are always in demand, regardless of the economy. This type of investing is similar to fine art investing and can be used to build wealth. If you choose to keep your assets, you can pass jewelry down to future generations, leaving behind your legacy.
Gold
Gold is a popular investment choice because it historically has been attached to US currency. Although gold is no longer used as currency, its historical significance helps keep its price high.
Half of the world’s gold demand is in the form of jewelry. 40% of the world’s demand for gold is in the form of gold bars and coins. Investors and financial institutions alike purchase gold in this form. The last 10% of gold demand is from the medical and technology industries.
If you’re looking to diversify your portfolio, then gold is a perfect option. It’s different than investing in stocks and bonds, and when these assets perform negatively, it’s not uncommon to see gold perform quite well, increasing in value. Many investors consider gold to be a wise investment for any investor looking to diversify their current portfolio.
It’s reported that 10.8% of Americans own some type of gold or gold jewelry, making it an investment worth considering.
Silver
Silver is another popular choice when looking to invest in jewelry, as it has several key benefits. For starters, silver is known to hold its value long-term. When interest rates are low, silver tends to perform well. Silver is similar to gold investment-wise, and is an excellent way to round out your investment portfolio.
Silver is great if you’re looking for a hedge, is less expensive than gold, and offers a good return on investment. The current price of silver is $20.15 per ounce.
Platinum
Platinum is another great option when looking to invest in jewelry. Typically, platinum performs very well during times of economic growth. Platinum can be a great short-term investment, yielding more immediate results than gold.
The cost of platinum is currently $920 per ounce.
Palladium
Palladium is another precious metal used in jewelry. It’s similar to platinum and is currently $2,021 per ounce. The price per ounce of palladium in 2010 was under $250 an ounce, making it an ideal investment opportunity.
Titanium
Although most people don’t think of titanium when they consider jewelry to invest in, this metal is an excellent choice. It’s incredibly durable and strong and scratch-proof. It may increase in value as time goes by, making it a smart investment choice without expending a lot of cash.
Gemstones
Gemstones are a great investment for those who love stones and are looking for rare investments. Not all gemstones are valued equally, with some being considerably more valuable than others. Size, color, and demand all play a part in the cost of gemstones for investment opportunities.
Fine Ruby
The fine ruby is an excellent investment opportunity. Burmese rubies are considered the premiere investment gem. Unheated rubies can fetch as much as $300,000 to $400,000 at auction.
Rubies have inclusions, so, for investment opportunities, look for rubies that have the perfect color. It’s valued more than clarity.
Blue Sapphire
This is the next most popular gemstone investment. Blue sapphires can cost anywhere from $800 to $1,200 per carat for top-quality stones.
Emerald
Not all emeralds are created equally, so when investing, look for fine untreated emeralds. Large-size Columbian emeralds are the best investments. They’re very rare and will appreciate in value.
The cost of emeralds varies greatly, but the most expensive emeralds can cost upwards of $100,000 per carat.
Spinel
The spinel may be newer to the investment industry, but it’s far from new. The Black Prince’s ruby in the British Crown Jewels is spinels. Consider a spinel for your next gemstone investment.
High-quality spinels typically cost $3,000 to $5,000 per carat.
Diamonds
Diamonds are another gemstone that make a worthwhile investment. They’re durable (they’re the hardest substance on earth) and are insurable (as is all your jewelry).
They’re inflation-proof and typically appreciate in compliance with inflation. Just like your portfolio, it’s best to diversify the types of diamonds you invest in. Choose diamonds of indifferent colors and sizes.
Diamonds vary greatly in price but average $1,500 for a half-carat stone.
Opal
Opals boast vibrant colors reminiscent of fall. They make for beautiful jewelry and wonderful investment pieces. Black opals, for example, start at $60 per carat and reach as high as $10,000 per carat.
Blue and pink Peruvian opals range from several dollars per carat to tens of thousands of dollars per carat.
Tourmaline
Tourmalines make wonderful jewelry investments and come in every color of the rainbow. Investors typically look for tourmaline stones with strong colors, look clean to the naked eye, and are at least five carats in size.
Tourmalines range in price from $400 to $1,000 per carat.
Aquamarine
Intense blue aquamarine stones are extremely sought after by investors as this color is very rare in naturally occurring stones. Aquamarines gemstones cost about $675 per carat.
Tanzanites
Tanzanites cost roughly $200 to $350 per carat. If you’re looking to invest in this gemstone, look for tanzanites with a richer deep color.
Topaz
Topaz is a versatile stone that comes in many colors. Investors often look for this stone. The carat weight of the topaz you purchase will affect its price.
On average, the cost for a blue topaz is about $20 to $40 per carat.
Jade
Investors flock to Jade for several reasons. First, high-quality jade is rare. The most valuable color is imperial green. Jade has a rich history and is an incredibly beautiful gemstone.
If you’re looking to invest in jade, you can expect to pay $25 to $5,000 per gram.
Rolex Watches
Watches are another excellent jewelry investment. Take Rolex watches, for example. A stainless steel Rolex from the 1970s has never depreciated, making them a solid investment.
Rolexes are on the pricier side, but if you can afford them, consider investing in one.
The cost of a Rolex varies. Rolex watches can cost anywhere from $6,500 to $75,000. However, they usually cost $7,000 to $12,000.
Pearls
If you’re looking for a high-quality, wearable investment, consider a pair of pearls. In some instances, high-quality pearls outperform gemstones. Good quality pearls are very durable, and vintage pearls are worth a lot of money.
Additionally, pearls don’t depreciate in value. If you’re looking to determine what your jewelry is worth, you can find a jewelry appraiser here!
Invest in Jewelry
Now that you know why it’s best to invest in jewelry, you can start diversifying your portfolio. Whether you purchase gold or silver or opt for gemstones, investing in jewelry is never a bad idea. Remember to insure your jewelry to protect it in case it’s lost or damaged.
Gold maintains its value in the long run, making it an ideal investment. Additionally, gold rates seem unaffected by inflation, making them a great investment for those interested. You can invest in Rolexes for jewelry that won’t depreciate.
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Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
