With the world’s economy still struggling to recover from the financial crisis, many people are looking for ways to protect themselves from another economic collapse. Property and high-interest savings accounts were once considered to be safe investments but are now seen as risky ventures thanks to inflation and debt-ridden banks. Investing in jewellery is now a far safer option, and the following list gives ten reasons why you should carefully consider it as your next investment. Make smart investments to be sure you’ll have a prosperous future.
1. Jewellery makes a wonderful heirloom
If you prefer to leave something with sentimental value to your children after you have gone, then a piece of fine jewellery will be the ideal investment. Most people are reluctant to sell a piece of jewellery that has been in their family for generations, but they may not have the same reservations about spending a cash inheritance. Your children or grandchildren might want to sell your pieces of jewellery during the hardest times. They will thank you then.
2. You can enjoy your investment
If you invest in gold bullion, chances are it will stay locked away in a safe deposit box for most of its life. Investing in jewellery means you get to wear the item and enjoy it whilst it maintains its value. Surely, there’s a risk of losing those tiny gold earrings, but when you wear them attentively you won’t have any problems.
3. Jewellery is easier to transport
If you ever decide to relocate to another country, then travelling with jewellery is far easier than attempting to pass through airports with gold or silver ingots. Depending on the value of the jewellery, some countries may require you to pay VAT or import tax upon arrival so always be sure to check before travelling.
4. Buying jewellery from well-known designers will increase its value
Gold investors will often advise people against buying jewellery over gold bullion as you will need to pay more for the creation of the piece. However, buying antique jewellery or a piece from a well-known designer will add even more value to your investment. Such type of investment requires more money, but it’s worth it.
5. You can personalize your investment
Rather than buying a piece of readymade jewellery, why not design your very own piece and have it made to your specifications? Countries such as India and Thailand are great places to buy gold, and you can even find goldsmiths willing to custom-make pieces for much less than it would cost at home. There are also precious stones that you can use to create your own pieces of jewellery.
6. Precious metals maintain their value over time
Unlike currency, gold, silver and platinum will not decrease in value by a considerable amount over time. With the global economy still in disarray, investing in precious metals is a much safer option for those who wish to protect themselves from another financial crisis.
7. Jewellery is always in demand
If you should decide to sell your jewellery in the future, then you should not have any difficulty in finding a buyer. There is always a huge demand for fine jewellery with antique and rare pieces being especially popular among collectors. Plus, there are tons of places where you can sell your pieces.
8. The value of gold increases with inflation
As the cost of living rises over the years, the value of gold and other precious metals has also increased making it a great investment that is immune to inflation. Bear in mind that the purity of the gold used for your jewellery will have a big impact on its overall value.
9. Jewellery is excellent for bartering
The global economic crisis was a wake-up call to all those who believed that the current financial system could never fall into recession. Since then many people have now decided to invest in materials such as gold or silver that may be used for bartering should the economy ever completely collapse. Precious metals are a great material for trading and bartering that are accepted worldwide.
10. Precious metals are a great way to diversify an investment portfolio
One of the most important pieces of advice a financial advisor gives to their clients is the importance of diversifying their investment portfolio. Placing all of your savings in property or shares leaves you open to total bankruptcy should one market suddenly decline. Investing in a number of things such as gold, property and the stock market is a much safer way to secure your financial future.
When choosing a piece of jewellery to invest in, be sure to get the piece appraised as soon as possible by a licensed jewellery appraiser. It is also wise to take out some form of insurance policy to protect your investment should the worst happen. If you already have homeowners insurance, enquire whether you can add the jewellery to your existing policy.