Should You Be Investing In Jewelry?
Considered to be delicate works of art that enhance any ensemble, jewelry pieces made of precious metals are perceived as luxurious consumer commodities that have become a sign of social status. Owning beautiful jewelry is every woman's dream, even more when it has the potential of changing into a long-term investment. Apart from factors like emotional value and intricate designs, people are now buying jewelry because of the monetary value it will possess a few years later. However, there are consistent debates on whether you should invest in jewelry or not. To clear your doubts, let's compare the benefits and downsides of investing in jewelry and precious metals and reach a definite conclusion.
Pros of Investing in Jewelry
A Precious Heirloom
As we mentioned, any kind of jewelry that has a dedicated thought process behind, whether in terms of creating or buying, has a sentimental value attached to it. A lot of families still follow the tradition of passing down a precious heirloom to their generations, with precious metal or jewelry pieces being the main choice like rings, bracelets, or necklaces. Jewelry pieces are tangible assets that stay longer and thus are ideal as heirlooms.
It'll Help You Fetch a Great Value
Talking about liquidity, gold and silver jewelry stands at the forefront. These are specifically useful during inflation crisis, as jewelry prices tend to rise. In case of emergency or urgent need for money, you can always sell your jewelry in exchange for cash. Professional jewelry and precious metal buyers at Crown Gold Exchange suggest visiting a legitimate buyer store that can offer you a great value for your jewelry. At times, the value of gold outweighs that of stocks and certain bonds, making it your ultimate financial security asset. The last decade, in particular, witnessed a great rise in gold prices, which is enough to highlight its value.
Advantage of Craftsmanship or Age
If you compare the value of gold bars or coins with gold jewelry that uses the same quantity of metal, you'll notice that the price of jewelry is higher. It's due to the delicate craftsmanship and hours of hard work taken to produce such aesthetic artwork. Also, as the piece gets older, it has the potential of getting the “vintage” tag, which increases its value over the years. You can also invest in vintage or antique jewelry that has tiny markings to represent authenticity and designer. Visit pawn shops or vintage markets to get a good deal on those.
Cons of Investing in Jewelry
Unproductive or Dead Asset
Buying and storing jewelry is basically a dead asset. While lying there, no extra income is generated as the case may be with real estate. You cannot generate extra revenue from jewelry like rent or interest, making it an unproductive investment until you sell it. It'll, in fact, demand some investment in storing and keeping it safe, such as insurance and a deposit box. Basically, don't expect any steady cash flows while you're thinking of investing in jewelry.
Not Legible as a Short-Term Investment
Investing in jewelry will also be fruitful only if you're looking to secure it for a long period. There's no point in buying and selling jewelry within a short time span. Gaining benefits from jewelry investment requires a lot of patience and time. Unless you're willing to look at it as a long-term investment, we wouldn't suggest investing in jewelry. It might also make you a target of the capital gains tax or wealth tax.
Difficult to Secure
Assets such as gold and jewelry are major targets for robbers. Unless you don't have a bank locker or a secure safe deposit, storing your jewelry is always going to be a major risk. Its size and weight also take up a lot of space, making its storing and securing very difficult.
After comparing the pros and cons, we can very well say that investing in jewelry can be a wise decision in this age. The past few years have witnessed a sharp decline in gold prices, which can be beneficial for you in the coming years. It offers a great value for money, carries a huge sentimental value, and can outrun stock investments at times. With precious metals and jewelry, you can never go bankrupt. It's a great financial backup anyone can have. If you're considering investing in jewelry, you must first research the market's current state, inquire about gold and silver prices, and look into predictions. Buy it only when the market seems to have a favorable backdrop, as it is a major investment that shouldn't go wrong.