Bracelets, necklaces, gold, silver, rubies, pearls, and diamonds—these are beautiful items that everybody would like to own one way or the other. Some people buy these for their own use. They’re a kind of personal investment. But believe it or not, many people think that it is wise and good to actually invest in jewelry, more than just to wear! Before we go further, let’s first discuss what jewelry is. There is the more available costume jewelry made of any kind of material that is pretty. Usually, glass, beads, seeds, shells, strings, etc. These usually do not cost very much. These are very attractive but are unlikely to increase in value. We are not talking about investing in these. Then, there is precious jewelry. Precious jewelry is usually a combination of precious metals like gold and silver and gemstones like rubies and diamonds. These materials are very expensive to extract from the earth. Thus, they are precious and command a high price. Now why is it that some people invest in jewelry? The first reason is tradition. Investing in jewelry has been around for a long time. Historically, people in the past used them and kept them for posterity. Second, people believe that the price of jewelry can go up as time progresses. When the right time arrives, they believe they can sell at a higher price. Lastly, they believe jewelry is a liquid asset. They believe they can readily sell and make money on jewelry. Can they really? Theoretically, investing in jewelry is considered an ownership investment. As we discussed before, an ownership investment provides the income through the sale of the asset ideally at a higher price than what you bought it for. The returns from an ownership investment are called gains. Being an ownership investor is a special advantage for those investing in jewelry. Those who like jewelry can make money out of it. Of course, this will also involve having the right networks and proper understanding of current market conditions. As much as investing in jewelry is interesting, it has its big disadvantages. We will discuss more of these in a future article. Right now, just be aware that there are possible opportunities in jewelry investing. Got someprecious jewelry that you are not using? Why not start selling it at a profit instead? But before you really get involved, know about the disadvantages.
Posted on: Tue, 18 Jun 2013 03:03:17 +0000
Trending Topics
Recently Viewed Topics
© 2015