When it comes to lucrative investments, jewelry might be one you haven’t thought of before. While gold bars, real estate, and artwork may come to mind as tangible investments that can grow in value, jewelry also can be more than just a wearable flash of glamour. Jewelry that’s been crafted with gold, platinum, and other precious metals can be a stable investment, as well.
Read on as we investigate what investment jewelry is and why it can add value to your portfolio.
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What Is Investment Jewelry?
If you’re buying cheap jewelry at a big box store, there’s a good chance it won’t qualify as investment jewelry. Yes, it might shine and sparkle under the overhead lights and enhance your wardrobe. But unless its purity rating is at 75% or above, it probably won’t resell for much.
Karat values matter when it comes to jewelry’s value. Most reasonably affordable jewelry is 10k gold, which means it’s under 50% pure. When you want investment jewelry, it should be at least 18k or higher as an indication that it has more than just a pretty design. The gold, platinum, or gemstones within investment jewelry make it a worthwhile addition to your portfolio. Just be aware that you’ll need to care for jewelry to help it retain its value. That means checking settings to make sure they’re secure, and storing jewelry properly in sealed bags. As with gold bars or coins, it’s best to store jewelry in a safe deposit box.
A Deep Dive into Karat Purity
When you’re buying gold jewelry at the store, it may be plated, meaning that a less expensive metal is coated in a thinner layer of gold. Or the gold may be combined with alloys to improve durability. When you’re looking for investment jewelry, it may lack durability, but that’s because it consists of a purer composition. This can pay off if you try to sell the jewelry, as a higher purity rating means it will sell for close to the actual price of gold.
Karat values will tell you how pure your jewelry is. 24k gold, for example, is nearly 100% pure, while 18k gold is 75% pure. You can strike a compromise between purity and durability with 22k gold pieces, like authentic Gold Eagle coins. These gold bullion coins are an excellent, reliable investment with name recognition among other investors.
Weighing Style and Value
Most people want jewelry that looks stylish. You may pay thousands of dollars for a contemporary bracelet, for instance, made by a leading designer in the fashion industry. Even though the bracelet costs a lot upfront, it may not offer much value in terms of its gold weight.
If you’re hoping to prioritize jewelry as an investment, opting for a less stylish bracelet with a higher purity rating may make more sense. You’ll be able to gain more from a sale to help your budget, should you decide to pursue one. Keep in mind, however, that jewelry isn’t as liquid as gold bars. You’ll have to shop around at jewelers and pawn shops to see what they offer and what fees they charge for smelting. On the other hand, if you see jewelry as an accessory that should be enjoyed in the moment, design may be more important than purity.
Evaluating Hallmarking
Be sure to check investment jewelry for hallmarking. You can find these little stamps on chain clasps or the inside edges of rings. Here, you’ll find the karat purity ratings and the name of the jewelry maker.
Think of hallmarks as certification that you’re buying a quality piece. They indicate that the piece has been tested by trusted authorities in the jewelry industry. And perhaps most importantly, hallmarking will resonate with buyers. They’ll see it as an indication of quality and be more likely to make a sale.
Investing in Jewelry
Should you pursue investment jewelry? If you want assets that offer both a fashionable addition to your wardrobe and a secure investment, jewelry can be the answer. You’ll need to check purity ratings and take care of the pieces, however, to reap the most benefits. If you want assets that are easier to sell, though, bullion may be preferable. With investment jewelry, you’ll gain an accessory and an asset. And you can enjoy it now or store it securely to help preserve its future value.
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