People are always looking for different ways of investing, with the number one thing to consider is the return. One market that has been around for some time is jewelry. There are many people who have been able to get a great return while there are those who did not make a good return. Investing in this market is the same as any other market. There are a number of factors you will need to consider before you can decide to invest in the market. There is one rule that will prove to be the most important of all: you should never pay retail if you are planning to use the jewelry as an investment. You should leave it to someone else to pay the retailer’s markup, then purchase it from then as a second hand. This is an important trick to use when you invest. Below are do’s and don’ts of investing in jewelry.
Choosing items that will hold their value
Trendy jewelry can be the hottest thing in the market, and the retailers are able to sell the products at a premium. But you need to ask yourself whether the jewelry is going to be worth anything many years from now. Unless the jewelry is coming from a top designer or it contains high-quality diamonds or valuable gemstones, then making the investment can be risky. According to Shopedc.com, there are some that have always been shown to give a good return and you can always have fewer risks when investing in them.
Doing research before you can start investing in jewelry
There are many people who start investing in the market while thinking there are no risks involved. One common mistake people make is paying too much for items that are not going to hold their value or items that will have a small margin of profit when you sell them. If you see a piece of jewelry you are interested in and want to buy, take some time to do research before you can commit. Some of the factors you need to consider include;
The quality of the diamond. Diamonds that are over one carat will always perform better when compared to the smaller ones on the resale market, but there are also other factors like clarity, cut, and color that will have an effect. Classic shapes will be able to hold their value better than those trendy ones.
Is it gold or other metals? - Precious metals have value, but gold will hold it better than others. When buying gold jewelry, you should be looking for pieces that are made with 14 karat gold or higher.
Contemporary or vintage? - Vintage jewelry will prove to be a good investment, but you need to confirm that all the diamonds are authentic before you can buy it. The settings should also be in good condition. Unless it is a limited edition item, contemporary jewelry is not good for investment. The items should have all the documentation and ensure they are made of quality materials before you can buy.
Do you like it? You can enjoy the jewelry between the buying and selling, which is something you don’t get to do with many investments. There is no need for locking up all the jewelry. There are some that will take some time before they can be considered a retro piece or vintage. You can wear it if there is no risk of damage. If you are not able to sell it, you will be stuck with it.
Never take the seller’s word for it
No matter how beautiful the piece is, you should make sure it has been authenticated before you decide to purchase it. It is hard to trust everyone, and there are many dishonest sellers out there, and most of them are going to offer you bargains that are too good to be true. There are many replicas and knock-offs flooding the market; many of the fakes look like the real thing, and an expert is the one who can tell them apart. You should always ask for the seller to provide you with a certification, if they refuse, walk away.
Keeping emotional distance
Jewelry is very beautiful, and this is why some people will not due diligence before they make the purchase. You should never let emotions drive you to make a purchase that doesn’t make sense financially. You should always take some time to do some research and ensure you are not making a poor investment. When you find yourself in such a situation, remind yourself that there are plenty of fish in the sea.
Before you can invest in jewelry, you will need to learn the meanings of the different markings and know the most valuable brands. Learn the stones that are worth more, and also consider your time when it comes to determining the value.
Don’t become a target
You should never tell people that you have invested in jewelry. Whether you are buying old gold jewelry and storing it till there is a spike in price or you are buying and reselling as-is, you will need to keep a low profile. Your valuables should always be secured while waiting to turn a profit on them. Your security is also important, especially when meeting private parties to buy from them. You should always choose a public place when meeting, and you should also not provide personal details that can easily result in thieves to your home.
Know where to sell
You need a venue to sell your jewelry, and it needs to be transparent, safe, offering market value, and convenience. You should do proper research in this area because you are not going to make any profit unless you sell. Before you can buy, know where to sell and if you are going to sell it on the price you expect.
Investing in jewelry can give you a good return, but you need to invest time and effort in finding the right ones.