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Facts You Need to Know about Investing in Jewelry

Updated on December 4, 2013

Investing in jewelry can lead to some high earnings in future years. An added bonus is that many of your best buys among items of jewelry will also be able to worn and enjoyed for many years to come. Instead of just letting your precious jewels languish in a bank vault as you would do with gold coins you can select that perfect diamond ring or dazzling amethyst necklace and wear it to a special event.

The one thing to keep in mind is not to be ignorant about the reasons for investing in jewelry. You may be interested in either short or long term jewelry investments but you will need to do your homework and learn how these types of investments are structured. You also need to how to buy and sell jewelry if you hope to be a smart investor.

A good investor is going to be very familiar with those items that he is investing his money into. In other words you have to know if that jewelry is real, fake or a clever reproduction.

With enough experience and research you will learn to develop an eye for the best jewelry. Then you will be more confident about what and when to buy jewelry as it hits the open market.

Do not fall for those ads that claim those limited reproductions are going to increase in value over time. Reproductions of jewelry items are still just reproductions and the materials are generally not going to even be worth the price you are asked to pay for them.

What you need to invest in is a beautiful, quality amethyst necklace, a unique pearl bracelet or heavy gold earrings not something that is merely a reproduction. Choosing true, quality pieces of jewelry will give you a real chance to reap financial and personal rewards on these items in the future.

There are many areas of jewelry in which you might consider making an investment. Gold and silver are always going to hold their value, and these metals will also increase in value over time. Platinum jewelry is another area in which you might want to invest. Platinum is even scarcer than gold and the cost per ounce is higher.

You will need to understand the difference between sterling silver and silver plated chains and settings. It is very important that you know the difference between the different types of gold which can range from 10K to 24K. There are even some gold settings that are labeled 6K or 8K but you will certainly not be making an investment if you purchase any of these low level gold settings.

18K and 24K gold jewelry will fetch the highest prices for you if you decide to liquidate your investments. With gold prices at an all time high this is an ideal time to purchase this type of jewelry but only if you buy it at a fair price. One mistake that people make when they are purchasing jewelry is failing to obtain an accurate estimation of the item’s true value before they close the deal.

If you buy jewelry at a retail shop it is difficult to classify many of these purchases as true investments due to the overhead costs that are reflected in that price. Diamonds and diamond jewelry are marked up more than 100% when you purchase them in many traditional retail environments. When you want your jewelry to be a good future investment the purchase price must be realistic. You might want to start off any diamonds you may want to invest in with something that is stunning, yet affordable, like pave diamonds.

Search for unusual and unique items for your investment dollars. Antique jewelry, vintage costume jewelry and designer jewelry can be all wonderful investments.

If you have your heart set on a sparkling, amethyst necklace in an 18K gold setting why not look for an antique piece instead of a new necklace? You can check private sales venues, antique malls and estate sales to see if you can discover one of these overlooked treasures. In many instances you can purchase this type of jewelry at a price much lower than its fair market value.

Once you determine what kind of jewelry you should be looking for you and research the field you will find that it becomes much easier to tell if you have stumbled upon a true treasure or have merely found an inexpensive body ornament.

beware the fake jewelry and diamonds!
beware the fake jewelry and diamonds!

Investing in jewelry is fun and exciting. It can also be very profitable if you are careful and patient when making your purchases. Always keep these factors in mind when you are considering any jewelry purchase from an investor’s point of view.

  • The type of materials used, and their quality.
  • The proper identification of any stones
  • Testing and grading of any stones
  • Weight of the gold, silver or platinum
  • Cut and clarity of the stones
  • The age of the jewelry
  • Any provenance or historical interest attached to the jewelry
  • Rarity
  • Condition
  • Appealing Design
  • Whether the jewelry is signed

Take your time and really gather the resources needed to explore and learn about the field of jewelry investments before you make your first purchase. Remember that you will be the expert selecting the jewelry that you are going to buy and you must be able to trust your knowledge and instincts.


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    • Doodlehead profile image

      Doodlehead 5 years ago from Northern California

      Nicely written. Easy to read. Thank you.