Jewelry is beauty, style, and status. But it has another great feature that only a few people think about: jewelry investment.
It can be an excellent investment, saving and increasing your capital. True, it is not so simple. There are several conditions under which such an investment will work.
The price of gold is always rising. Looking at the graph of price growth over the past 20 years, we get an interesting picture. So in 2000, 1 gram of pure gold averaged $9; in 2020, it averaged $61.5. The price has risen 6.83 times or 683%.
Gold is a protective asset. In times of crisis, its value inevitably rises when, at the same time, prices of most other assets fall. It means that its growth is skewed – in quiet times, it increases in value rather conservatively. So (now we come to the essential condition) investing in gold jewelry is a long-term investment (15-20 years or more). If you remember that crises happen every few years, it is clear that over 15+ years, the value of this precious metal will inevitably increase and multiply your capital.
What kind of jewelry is suitable as an investment?
Jewelry can be a great investment for several reasons. Jewelry is a tangible asset that can appreciate in value over time and is often seen as a safe asset in times of economic uncertainty. Furthermore, jewelry can be a great way to diversify your investment portfolio if you buy pieces like moissanite rings and can provide a hedge against inflation. Jewelry can also be a great way to pass wealth down to future generations and can be easier to store and transport than other investments, such as stocks and bonds. Various kinds of jewelry you might be interested in are suitable as an investment, such as the following.
- Laconic jewelry with popular gemstones. These include diamonds, sapphires, emeralds, and rubies. Stones are rising in value as fast as metal, and these gems will always be in demand.
- Jewelry as a work of art. A piece made in a single copy will also find its buyer among connoisseurs of exclusivity.
The good thing about jewelry is that it hardly ever wears out and will last for centuries. Unique diamond engagement rings can become not only an investment for you personally but also an investment and a family heirloom that will be passed down from generation to generation and grow in value significantly.
In this case, it is important to buy jewelry from reliable manufacturers with official confirmation of the quality of the jewelry. Otherwise, there is a risk of purchasing a fake.
How else can I invest in gold?
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Gold bars.
The minus is the high entry threshold and storage – it is unlikely that leaving gold in this form at home would be a good idea. Plus, they are subject to VAT of 18% of the total amount when purchased.
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Collectible and commemorative coins.
Investing in gold coins can start with a small amount of money, but selling them will be more challenging.
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Mutual Funds Accounts – Depersonalized Metal Accounts.
If physical bullion needs to be stored somewhere, then MLA is the way to cope with this problem. But there is a substantial disadvantage – a great difference in purchase and sale rates, which the bank sets. For example, the buying rate is $105, and the selling rate is $95. It means that if you make a purchase, you will pay $105. And if you need to sell, you will only get $95.
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Shares and ETFs for gold.
To invest in stocks of gold and other companies directly related to changes in the price of gold, it is crucial to have a good understanding of investing in the stock market. This option is good with a small entry threshold but has a high risk.
Investing is a whole science, and if you are interested in the subject, you probably know how valuable gold has been, is, and will be at all times. We wish you a successful investment and will be happy to advise you on investment jewelry and stones.
