Jewelry As An Investment

With the world changing at an ever increasing pace, planning for retirement requires innovative strategies more than ever. Relying on one’s 401k, social security, savings account, or IRA is simply not enough these days. It’s necessary to also consider other investments, especially physical commodities, such as jewelry.

Physical commodities have a strong tendency to rise in value, regardless of the state of the economy. Natural diamonds in rings, bracelets, and necklaces are beautiful and contain sentimental value, but also act as insurance against the ups and downs of an uncertain economy. This makes diamonds an investment both in current quality of life, and as a complement to a more standard investment portfolio. Gold, as well, has been in high diamond for centuries, and also provides a check against the variance of our modern economy.

Real estate, gold, silver and diamonds usually appreciate in value along with inflation, making them the perfect insurance against it. Unlike the others, diamonds are much more durable, and easier to store and transport. Diamonds are the strongest substance on Earth (just try to break one!), and a fortune in diamonds can be carried in your hip pocket. Given their high demand, diamonds are easily convertible to cash, and thus make for a highly liquid investment.

Jewelry is cyclical and there are ups and downs in the market like any other investment (although they tend to rise and fall opposite the stock market, making them a sort of personal hedge fund). Investing in jewelry is about playing the long game, showing patience by holding onto the right pieces while carefully maintaining them. Pieces bought a generation ago are almost certainly worth more today, and in many cases worth much more, even accounting for the change in value of the dollar. Antique, period and signed pieces will be worth the most. Pieces crafted in France may command a premium. Colored diamonds being rarer than white diamonds also make good investments. Necklaces, rings, bracelets and other pieces made by well known designers such as Tacori, Henri Daussi, Benchmark, Everest, or A. Jaffe (all featured at Mitchum Jewelers) continue to rise in value. But the pieces with the most investment potential are both exceptionally well crafted and rare, both in material and style, which makes them more comparable to collectible art as opposed to simple precious metal.

Having your current jewelry collection properly appraised for both insurance and accounting purposes is the place to start. Most industry experts recommend having your jewelry appraised every two years at a minimum.

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