Saturday, July 11, 2009

Investment Jewelry

In this current economic downturn, many investors are turning to hard assets as a store of value.  The key is to find assets that provide a hedge against inflation and potential currency weakening.  Gold is proving to be a resilient asset in this environment. In fact, since October of 2008, the gold price has increased by over 25%.


What are the benefits of purchasing jewelry as an investment?

  • Jewelry is easily transportable.  You can carry your wealth between countries.
  • You control the investment. 
  • Unlike holding bullion, you get the benefit of using your jewelry by wearing it.
  • Jewelry can benefit from price appreciation if the piece is deemed to be a collectible item.

So how do you make your jewelry purchases also good investments?  Here are a few tips:

  • Focus on “Fine” jewelry.  This means that the workmanship must be top notch, and the design must be exquisite, and preferably unique.  Commercial jewelry such as that found at a typical retail jewelry chain store, will have little value to a jewelry collector, and the potential resale value will be lower. 
  • When selecting the gold karat level, 18 K to 22 K is preferred for investment purposes. 24 K is is good for pieces that are protected against wear and tear such as a brooch or pendant.
  • Choose jewelry or have jewelry designed that looks good to you.  Firstly, you or your spouse will want to wear it.  Secondly, if it looks good to you, it will look good to others, and this again will increase its collectability value.
  • “Limited edition,” “Custom-made,” “Unique,” “Designer” are all qualities that enhance the value of the value of your jewelry to a collector.

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