Jewelry Financing – Worth Or Not?
Investing money in jewelry is pleasant, beautiful, but economically impractical. This jewelry financing will not bring dividends and will not help to keep what you have acquired.
Jewelry financing essence
For some people, jewelry is a sign of success and prosperity, for some it is a stylish and fashionable accessory, and for other, it is a memory of an event and a person. But sometimes jewelry is purchased as a good investment for the following reasons:
- Jewelry is items made of precious metal (gold, silver, platinum) that will always be in value. In addition, the cost of precious metals in the world is constantly growing.
- Jewelry does not deteriorate over time, it can be stored for many years and passed from generation to generation, using it as a financial airbag.
- Jewelry is easy to take with you, transport, hide.
- If necessary, jewelry can be quickly and profitably sold.
In fact, it is pointless to invest in jewelry as savings. Jewelry is best used for its intended purpose. These are factory-made pieces that are sold in regular jewelry stores – mass-produced. Such jewelry has no history, artistic value, or descent.
Exclusive jewelry made by hand by renowned jewelry houses, as well as antique or vintage jewelry can be considered as an investment.
Low liquidity of jewelry
Liquidity is the ability of an asset to be quickly sold at minimal cost, or in other words, the rate at which an asset turns into money. Used jewelry is a low-liquid asset. This is due to a number of reasons:
- Consumer jewelry is sold at inflated prices. The price of the precious metal itself is a small part of the product cost, the rest is work, trade margins.
- The content of pure gold in jewelry depends on the fineness, usually 585, and it is low. The lower the purity, the lower the price per gram of gold. Selling used jewelry will have to be much cheaper than the cost of acquiring them.
- It is widely believed that jewelry absorbs the energy of the person who wears it, including the negative one. Therefore, wearing other people’s jewelry is unfortunate and ill. There are very few people who want to buy second-hand jewelry, despite their cheapness.
- When buying jewelry, you can often buy a fake, for example, not a gold piece, but gold plating. Having learned about this when selling, you, accordingly, will get nothing.
Who to sell jewelry?
You can sell jewelry at a commission shop. It is possible in the event that they are in a marketable state with no scratches. Jewelry must be stamped. You will get money only after the sale minus the commission.
Jewelry can be sold to a pawn shop or to organizations that buy gold up. When selling jewelry in such facilities, you will receive a minimum price: the lower the sample, the lower the price. The sample is determined by an expert in a pawnshop, having made an examination of the product. In the pawnshop, you can pledge jewelry, with the possibility of their further redemption.
It is more profitable for everyone to sell their jewelry to individuals: acquaintances, on social networks, Internet forums and online auctions.
The myth that jewelry is not only a great piece of jewelry, but also a means of investment is spread by jewelry manufacturers and their sellers.
Before you start investing in jewelry, just think to whom and at what price you can sell it when you need the money.
Tags: finance, Jewelry