The art of investing in jewellery

New Delhi, Sep 12 (IANSlife) In today's uncertain world, the spotlight is once again shining on the wisdom of investing in jewellery as a valuable asset. Unlike gold and silver coins or bars that often sit idle in safes, jewellery is a mobile investment that you can wear proudly, or pass down through generations. It allows you to derive pleasure from your investment while retaining its value.

Investing in gold jewellery acts as a shield during inflation because of its liquidity. Unlike paper money, gold doesn't lose its value. It's highly immune to the ups and downs of stock markets and is a reliable asset that remains steady even when stock markets are unpredictable. Plus, you can easily turn it into cash, making it a valuable resource during economic challenges or civil unrest.

So, is jewellery a worthwhile investment? Absolutely!

Jewellery has a fantastic benefit beyond making money - it's super easy to turn into cash when you need it. Unlike some investments that you can't touch for a long time, jewellery gives you the freedom to sell it whenever you want. Plus, if you choose top-quality, genuine jewellery, you're not just protecting your wealth; you're also setting yourself up for big profits in the future.

Moreover, jewellery possesses sentimental value and can attain collector status, especially when it features rare gemstones or bears the mark of a renowned designer.

Before you invest in jewellery, here are some important factors to consider according to Shikha Aggarwal, Founder, of Aren jewellers:

Shop at Specialized Stores: Always buy from reputable jewellers, goldsmiths, or designers. These professionals have a wealth of experience and expertise, ensuring that your investment is built on a solid foundation) Inquire about the jewellery's background, its historical significance, and how its value is calculated. By engaging in this dialogue, you not only make an informed choice but also establish a relationship built on trust and knowledge.

Embrace Emotion: When you invest in jewellery, you're not just safeguarding your wealth; you're collecting treasures that bring joy and emotions. Invest in jewellery that you genuinely like and would wear or gift. Prioritize individual beauty and stability in value. This emotional connection with your jewellery adds an extra layer of significance to your investment. It transforms your collection into a personal story.

Opt for High Quality: Choose real jewellery with significant precious metal content, such as gold and platinum. These metals are renowned for their massive value and resistance to economic fluctuations. High-quality pieces like classic rings, elegant earrings, and timeless necklaces retain their value.

Go for Precious Metals and Gemstones: Precious metals like gold and platinum enhance the jewellery's value. These metals have proven their lasting value, staying strong even when the economy is uncertain. Incorporating diamonds and coloured gemstones further boost its worth. They contribute significantly to the overall value of your investment.

Value of Gemstones: Consider gemstone quality, especially rare ones like Padparadscha sapphires or natural diamonds. Their scarcity in the market makes them particularly valuable. The rarity and quality of a gemstone, including factors like its colour, clarity, and cut, also significantly influence its value.

Brand, Custom, or Antique: Investing in jewellery you genuinely love ensures that your collection is not just about financial gain, but also about personal satisfaction. The joy you derive from wearing or owning these pieces is an investment in itself. These options offer varying investment potential.

Precious Metal Price Fluctuations: Remember that the selling price of jewellery is influenced by precious metal prices, which can fluctuate. This volatility in metal prices can directly impact the overall value of your jewellery collection. Gemstones provide stability against such fluctuations. Their worth is often influenced by factors like rarity, quality, and demand, rather than the broader economic climate.

Certificates as Security: Obtain detailed invoices with information such as the fineness of the metals used intricate details about gemstones, and any treatments or enhancements that have been applied. These invoices act as a vital record of your investment and offer a level of security and authenticity. Certificates from independent gemological laboratories for valuable pieces also help.

Seek Second Opinions: Getting a second opinion and comparing options is advisable, especially for custom or gemstone jewellery as it ensures that you have a well-rounded understanding of your collection's value and potential. Visit multiple jewellers or goldsmiths to ensure informed decisions. They can assess the craftsmanship, quality of gemstones, and overall value, helping you gain a comprehensive understanding of your investment's worth.

Ask Questions: Inquire about the jewellery's origin, quality, and gemstone treatments, and always request certificates or documentation that provide a clear and verifiable record of the jewellery's characteristics. If the circumstances allow, don't hesitate to negotiate for discounts or additional services. While this may not always be possible, it's a proactive approach to securing the best value for your investment.

What are the kinds of jewellery you can invest in?

Investment-Grade Jewellery: When we talk about investment-grade jewellery, we're referring to pieces that have a significant amount of pure gold in them. The "karat" rating is the key here—the higher the number, the more gold in the jewellery. If you’re looking to make a profit through gold jewellery investments, it's a smart move to opt for either 24-karat gold (pure gold) or 18-karat gold, which is 75% gold. These options have a softer gold content, which is particularly advantageous if you're purchasing items like necklaces, earrings, or brooches. The higher gold helps protect these pieces from potential damage caused by accidental knocks against hard surfaces.

Designer Gold Jewellery: Designer gold jewellery is an excellent choice in this context. What makes this kind of jewellery special is how it combines precious metals with the designer's creative brilliance. Designer gold jewellery can be a great investment, whether you prefer classic or modern styles.

Many trust gold jewellery as a secure financial investment, but not all pieces may prove profitable. Understanding investment-grade jewellery and its market value is crucial. Gold jewellery offers a means to preserve wealth, acquire heritage pieces, and enjoy lasting beauty. As an investment, it safeguards against inflation and economic uncertainties. Investing wisely involves choosing jewellery with a higher percentage of pure gold, such as 24 karats or 18 karats, and considering designer or antique pieces for added value.

Investing in jewellery requires a good sense of timing, as selling at the right moment matters for better profits. Also, getting high-quality jewellery at wholesale prices is crucial. It's not just about beauty; it's a way to secure your financial future. Quality jewellery can become more valuable over time, making it a smart investment. So, with the right timing and quality pieces, you can make your jewellery investment shine and grow your wealth.

(IANSlife can be contacted at ianslife@ians.in)

Source: IANS