Buying jewelry is a good investment

Investing money: is jewelry a value-adding capital investment?

Gold prices have risen steadily over the past few years. Gold jewelry in particular, as well as expensive and precious pieces of jewelry, are considered a safe investment for many consumers. In the following I want to discuss whether jewelery made of precious metals is really worthwhile as an investment.

Jewelry as an investment only with expertise

Anyone who wants to build up their fortune with jewelry and hopes for a strong return should be familiar with the jewelry market. However, it is not advisable to simply and carelessly invest in expensive jewelry.

The intrinsic value of jewelry depends on many criteria:

  • Jewelry is a matter for experts. It should only be purchased from reputable jewelers
  • Even with jewelry with expertise, caution is required
  • Even small details should be paid attention to when buying
  • If in doubt, you should order an appraisal before buying
  • In the case of gold jewelry, the authenticity of the stamp is important

Basically, caution should be exercised when buying jewelry. The customer should proceed cautiously, sensitively and with a sure instinct. Anyone who wants to use jewelry as an investment should generally only buy from reputable jewelers. These usually present an expertise.

Investment: value of precious stones

Unfortunately, expertise alone is no longer enough, because here too there can be nasty surprises after the purchase. Even small subtleties in gemstones that are not always visible to the customer have a decisive influence on the resale value. Stones in particular - such as emeralds or rubies - have an effect on the value of the piece of jewelry.

Even tiny color changes can depress the price. Even cracks or chips that can only be seen through a magnifying glass have a significant effect on the value of the jewelry. Therefore, jewelry that is only intended for investment should not be worn. The wear is too high.

In the worst case, the customer receives less money than when buying. In this case, even an expertise is of little use. In the case of very expensive pieces of jewelry, it can be worthwhile to call in an appraiser beforehand. However, the client must pay the expert's costs themselves.

Investing money with gold jewelry

Recently, more and more investors are investing in gold. Gold jewelry is actually a good investment. But this only applies if the jewelry is genuine and of high quality. As with all other pieces of jewelry, the following applies to gold: Pay attention to the quality! Stay away from street and motorway sales.

By now it should be clear to everyone that the sale of motorway gold has a criminal background and that the gold jewelry offered there is very likely to be counterfeit. Most of the time it is just cheap plagiarism made from base metals. By going to a renowned jeweler, you avoid unpleasant surprises when buying gold.

Real and high quality gold jewelry, on the other hand, is considered a worthwhile investment:

  • In times of financial crisis, more and more investors are investing in safe gold
  • After the crisis in Greece and the euro, gold even broke through the EUR 1,000 limit for the troy ounce (31.1035 grams)
  • Gold / gold jewelry is still considered a safe investment
  • Gold speculators have long made big profits
  • The euro is stable, the dollar is low: there is a flight into real assets

Purity of Precious Metals

Unprocessed gold in particular is a very promising investment. However, here too, attention must be paid to the quality and authenticity of the jewelry. Jewelery gold is usually not processed in its pure form.

The gold stamp 333 is only 1/3 pure gold. The purity of gold is given in carats. 100% pure gold has a value of 24 carats. No matter how well you are into jewelry, don't take any chances when buying gold!

And here again applies: Renowned goldsmiths and jewelers submit an expertise or a report for expensive and noble pieces without being asked, if only to protect their good reputation.

When buying gold jewelry online, you should only use well-known and well-known auction houses. Buying gold jewelry is a matter of trust. Anyone who buys high-quality gold jewelry is also in possession of a very good capital investment. It is best to buy pure gold in the form of gold bars at the bank.

Investing money with diamond jewelry

Even higher profits than with gold jewelry can be achieved with the purchase of diamond jewelry. Since diamonds have a high raw value, high investments are of course also worthwhile. But there are also a few things to consider when buying diamond jewelry:

  • The stones should only be purchased from reputable sources
  • Only buy common sizes and cuts
  • Pay attention to a high color quality
  • Colored gemstones should only make up 20% of the total purchase

When buying diamonds, you should only seek reputable sources. In addition to the reports and expertises already mentioned, renowned and well-known jewelers also present a gemstone portfolio. This is particularly important when buying gemstone jewelry. Legal regulations apply here: Colored gemstones may only be added up to a maximum of 20%.

These must be colored stones of high quality, such as sapphires or rubies. Diamond jewelery is only a long-term and profitable investment if these provisions are adhered to! In principle, incorporated diamonds should be of a common size. This also applies to the cut. If necessary, they can be sold more quickly and easily.

Luxury watches as an investment

Watches, here mainly well-known luxury watches, are a very good investment that can achieve an extraordinary return. Custom-made products and unique items in particular have a lasting increase in value. The decisive factor here is the manufacture.

Handcrafted clocks have a much higher value than machine-made clocks. The latter are ready in seconds, while manual production can take several weeks. When buying watches, investors should also pay attention to the quality and, of course, to the authenticity.

It is not advisable to make private purchases on the Internet; instead, a visit to a well-known jeweler or watchmaker is recommended. Ideally, there is a certificate of authenticity and a seal of authenticity. Old and antique clocks are also a good investment, here again mainly pocket watches. If there is no appraisal, it is advisable, especially for expensive items, to commission an expertise yourself.

Conclusion - high-quality jewelry is a worthwhile investment

Conclusion: high-quality jewelry is definitely a profitable investment that is still to be recommended. The higher quality and more expensive the jewelry, the higher the profit. Therefore, connoisseurs recommend a minimum purchase value. This should be at least in the mid five-digit range, especially for pieces of jewelry.

Jewelery with a lower sales value usually does not have sufficient material quality to guarantee long-term value retention. In addition, sudden and unexpected price drops must be avoided.

Editor's tip for silver jewelry: Sometimes you can find old silver jewelry at home that you don't know if it's real. You can use these methods to test the authenticity of the silver jewelry yourself. If it has tarnished, the silver can easily be cleaned again.

Author: Alexander Ferch, founder and managing director of Wedding Rings 123gold and Conftec GmbH.

Alexander Ferch