Increases jewelry in value
This is how you can find investments with potential for appreciation
Diamonds & Co .: Pay attention to the quality of the stones
If precious stones are used in the jewelry, investors should ensure that the quality is maintained. Small damage is often invisible to the naked eye, so expert assessments are essential. Gemstones are particularly common in the segment for high-price jewelry Diamonds. When purchasing a piece of jewelery, investors must carefully examine the following criteria: purity, cut, weight, color and rarity. The color is particularly important for determining the value, as it has a direct effect on the price, while the other characteristics have a direct impact on the color. Since even experienced jewelry buyers often succumb to incorrect assessments when evaluating these criteria, it is essential to seek expert advice. Only proven gemstone experts can professionally determine the value of a stone and can also detect even the smallest damage that can have a negative effect on the value of the material. However, investors should be aware that there are additional costs associated with professional appraisals, which as a rule cannot be added to the price in the event of a possible sale.
As an investment, diamonds have a clear advantage: They are very robust. In doing so, they demonstrate a stable value that many other gemstones lack. Determining fair value, however, is a science in itself. There are no price lists or exchanges with current trading prices for gemstones such as diamonds. So there are no market prices that can be called up on a daily basis, as is the case with gold, which can be used to calculate the value of a piece of jewelry. Even the Rapaport list, which is only accessible to professionals and which can be used to obtain information about the value of diamonds based on carats and other criteria, is rather non-binding. Investors and jewelry owners must therefore rely on the judgment of experts about the value and condition of the stone.
It is therefore important where jewelry investors acquire stones. Jewelry auctions are a good opportunity to get professionally appraised and valued diamonds under the hammer - investors can usually rely on the reputable appraisals at jewelry auctions. The prices are partly below those that jewelry retailers charge, as the retailer's margin is no longer applicable. There are also professional diamond dealers on the market. These are also usually reputable - but you will not be able to find bargains here because of the high-quality goods they prefer.
In addition to the quality of the diamond, investors should also ensure that they purchase cuts and sizes that are standard on the market. In the event of a sale, interested parties can be found more quickly.
When it comes to diamond investments, experts advise investing directly in the gemstones. Diamond deposits will continue to shrink over the next few years, so demand is likely to outstrip supply. Investing in single carats that are flawless and of high color quality can definitely be worthwhile. Diamond jewelry, on the other hand, is much less popular among experts as an investment recommendation. As soon as the stones are processed, there are additional costs that exceed the pure material value and are very difficult to calculate with a possible purchase. If necessary, you can turn diamonds into cash much faster than diamond jewelry. Despite all precautions and careful selection, diamond owners should be familiar with the fact that - especially in the case of short-term sales - a lower price is often achieved than hoped for. If you want to sell diamonds or diamond jewelry at a profit, you need patience, the right nose and the right timing. Therefore, gemstone jewelry is not particularly suitable for short-term capital investments.
When it comes to gold jewelry as an investment, there are a few things that investors need to consider. The quality of the precious metal in particular plays a fundamental role in the valuation. The current daily price can be determined in a simple and transparent manner, the gold price can be called up on a daily basis. However, gold is not just gold:
Investment gold is of high quality - the price is close to the equivalent of the gold content and gold weight. The purity of gold is given in carats - 100% pure gold has a value of 24 carats.
However, jewelry gold is processed, which lowers the purity content, which is also reflected in carats. The 333 gold stamp, which can be found on many pieces of jewelry, means nothing else than that this is 1/3 pure gold - 8 carats is the value. Jewelery with a gold content of 58.5 percent, i.e. with a 585 stamp in the jewel, is worth 14 carats. 750 gold with a gold content of 75 percent has a value of 18 carats. Anything beyond that is of little interest to the jewelry industry, because permanent jewelry cannot be made from pure gold, which is too soft.
When it comes to jewelry as an investment, the purity of gold is fundamental and has a direct impact on the price. Higher quality gold jewelry is more expensive to buy - but whether a higher resale value can be achieved is questionable. On the market, jewelry sellers get between 30 and 50 percent of the purchase price. Because dealers also want to live - the value of a piece of jewelry cannot be quantified by the amount of gold it contains. Buyers also pay the dealer margin, potential jewelry designers, and manufacturing costs that are barely taken into account when reselling.
Anyone who buys gold jewelry should therefore make sure that they or the recipient enjoy the piece of jewelry. This gives it - beyond gold and gemstone value - an individual value that cannot be quantified on the market, but cannot be claimed when selling.
If you buy gold as an investment and opt for jewelry instead of investment gold, you have to switch to high-quality gold with high carats. An increase in value is only possible if the jewelry is in perfect condition (ideally unworn) after its holding period and supply and demand come together in the best possible way.
If the spreads between the value of precious metals are sometimes high for gold jewelry, this is even more noticeable with silver jewelry.
Neither investment silver nor jewelry silver are recommended as a profitable form of investment. Silver jewelry is significantly lower in value than gold, which makes a value-increasing investment rather unlikely. Even if the silver price temporarily outperforms the gold price on the stock exchange - in times of stable economic activity this can be explained in particular by the strong demand from industry. However, silver jewelry will not increase its value fundamentally in times of economic strength.
Investing in silver jewelry with the idea of increasing its value makes little sense despite the rising silver price. Because the risks are the same as with gold jewelry - dealer margin, design, production cannot be added to the price when reselling. The silver price has to be increased massively in order to offset the ancillary costs of the manufacturing and sales process. Usually, this compensation cannot be achieved with a holding period of a few years.
Conclusion: This is what you should pay attention to when investing in jewelry
In summary, investors should pay attention to the following characteristics if they want to invest their money in jewelry and achieve appreciation in value:
- The quality of the gemstones used must be high and unequivocally verifiable. Certificates are essential.
- The quality of the precious metal - preferably gold - must be high. Only gold 18 carats or more is suitable as a capital investment.
- The piece of jewelery should have expertises and appraisals that unequivocally certify its quality.
- Ideally, jewelery should not be worn - even the slightest damage can severely depress the resale value.
- Large historical previous owners drive the price: When buying, however, make sure that there is sufficient evidence of the previous history - the chain of ownership must be proven.
- Rare, extravagant and not easy to multiply pieces of jewelry are better protected against a decline in value. Small editions or individual pieces by famous jewelry designers are best suited as a capital investment.
- Inexpensive jewelry is not a suitable investment item. Experts advise you to only enter the market for amounts in the five-digit range.
- Rings, bracelets and necklaces / necklaces are most suitable as investment objects. This piece of jewelry has the highest resale value.
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