We're asked this question several times a year, “Is jewelry a good financial investment?”, and my answer is always the same, “No”. Allow me to explain...
Jewelry is a great emotional investment for either yourself or your significant other. Putting on that new watch, a new chain, or that special ring can help make you feel wonderful! When a man wears jewelry, he’s showing his pride in his accomplishments and his love for life. But, when it comes to knowing how jewelry makes you feel, nobody knows that better than a woman. Women are the experts in this subject, hands down!
A woman can wear just one or two pieces of jewelry or wear layered necklaces, more than one pair of earrings, and multiple rings on her fingers. Either way, the jewelry she wears speaks volumes if you listen closely. A woman’s jewelry expresses her emotions and feelings with style.
When you love your jewelry and wear it often, it will become worn and in need of repair at some point. It’s always a good idea to have your jewelry inspected and kept in great condition, especially if it’s a piece to be handed down in the future. Repairs and maintenance costs do add to the cost of “investing” in jewelry. This is one reason that jewelry is not really a good financial investment.
However, the biggest reason that jewelry is not a good financial investment is because you will almost always pay more for your jewelry when you buy it than you will get when you sell it. You pay retail when you buy jewelry and get a percentage of the scrap value when you sell your jewelry. Since you’ll be selling at a lower price than you paid, it’s not considered a good financial investment.
An example of a very good financial investment is loosely related to jewelry and is known as “bullion”. Bullion is the pure or near pure form of gold, platinum, and silver. Bullion is available in the form of coins, bars, rounds, and ingots. When you purchase bullion, you pay a small percentage over the “spot” price. When you sell bullion, you’re able to get a price just under spot. If the spot value of the gold or silver has gone up, then you could easily sell it for more than you paid for it and that’s what I call, “A Good Financial Investment!”.
Buying and giving jewelry is always an expression of love and appreciation towards yourself or others. Stop by Diamond Jim’s PINEFOREST JEWELRY Experience and we’ll help you pick the perfect pieces of jewelry to show your love! We’re also bullion dealers and we’ll be happy to answer your questions about investing in bullion.
Thank you for reading the “Ask Diamond Jim” column!
Diamond Jim is a master jeweler, diamond dealer and precious metals broker. Pineforest Jewelry has been a proud member of the Independent Jewelers Organization and the Retail Jewelers Organization for many years. See more at: www.pineforestjewelry.com.
If you have questions pertaining to jewelry, watches, diamonds, precious stones, precious metals, and other questions related to the jewelry industry, email jmills@pineforestjewelry.com.