Investing in jewelry

More and more peo­ple are look­ing for prof­itable ways to pas­sive­ly earn and increase mon­ey in order to con­fi­dent­ly think about the future. There are dif­fer­ent ways to invest, but the expe­ri­enced investor will usu­al­ly use the few options avail­able to increase his chances of suc­cess and reduce invest­ment risk.

Assets in the form of gold coins, bul­lion, or items made of gold or sil­ver are con­sid­ered the least risky. Each case has a dif­fer­ent lev­el of risk and reward, but invest­ing in jew­el­ry is becom­ing more and more pop­u­lar every year. Let’s see why this is hap­pen­ing.

Should I buy gold and silver jewelry?

Pre­vi­ous­ly, in Ukraine, many peo­ple bought jew­el­ry twice in their lives: when they got engaged and got mar­ried. On oth­er occa­sions, such as anniver­saries or impor­tant events, a sil­ver pen­dant, a cross, and a pair of ear­rings were suf­fi­cient.
In India or Chi­na, where jew­el­ry sells best, it also serves oth­er func­tions, pro­vid­ed it is made of gold, sil­ver, and pre­cious stones.
In India, the peri­od of reli­gious hol­i­days begins at the end of the year. This time is con­sid­ered the best for mak­ing vows and mar­riage. Dur­ing this time, jew­el­ry sales are sky­rock­et­ing. For Indi­ans and Chi­nese, gold neck­laces, rings, bracelets are con­sid­ered the best wed­ding gift or just a dowry — it is still cus­tom­ary to send their pho­tos to the groom’s par­ents for a final deci­sion.

In Ukraine, the real­i­ties of life are such that peo­ple often have to give pri­or­i­ty to more impor­tant things. Wages in rela­tion to the sub­sis­tence min­i­mum in Ukraine are at least 3 times low­er than in Ger­many, Great Britain and the USA. This is one of the main rea­sons that when a per­son is con­sid­er­ing long-term and prof­itable invest­ment options, he is more will­ing to spend a large amount on a new TV, com­put­er, smart­phone or car than on jew­el­ry acces­sories. After all, it is a lux­u­ry, not a neces­si­ty. But items become obso­lete very quick­ly. What is new today, tomor­row will cost a quar­ter less than the amount orig­i­nal­ly spent.

Unlike elec­tron­ics, real estate, or cloth­ing, jew­el­ry serves mul­ti­ple pur­pos­es as an invest­ment. They com­bine prac­ti­cal­i­ty and loca­tion form. They don’t wear out and last for­ev­er. With care­ful han­dling, after a few tens or even hun­dreds of years, they will look the same as on the day they were pur­chased.

Buying a gold diamond ring or necklace is an investment in jewelry with multiple benefits.

• Pre­cious met­al items can rise in val­ue because they are time­less and durable. If you sud­den­ly need mon­ey urgent­ly, you can always take it to a pawn­shop, and then buy it back or sell it even at a high­er price than before the acqui­si­tion;
• a com­bi­na­tion of a loca­tion func­tion with a util­i­ty func­tion. Jew­el­ery — Jew­el­ry made of gold or sil­ver is the per­fect acces­so­ry that can also be used dur­ing a fam­i­ly cel­e­bra­tion, car­ni­val par­ty or busi­ness meet­ing;
• small size, which makes it easy to trans­port them from place to place. If nec­es­sary, they can be quick­ly packed with jew­el­ry, take them with you even on a trip to the oth­er side of the globe, unlike oth­er pop­u­lar invest­ments such as land, car, real estate;
• an invest­ment in feel­ings, emo­tions and inter­per­son­al rela­tion­ships. It is the hap­pi­ness they bring to their own­ers when they are worn or giv­en to loved ones. Lock­ing in a safe or keep­ing only in a cas­ket deprives them of this val­ue and soul, turn­ing them into a pure­ly phys­i­cal prod­uct;
• a way to tell about your­self, pro­vide rel­e­vant infor­ma­tion in a busi­ness envi­ron­ment, devel­op busi­ness rela­tion­ships where image is very impor­tant. After all, a per­son is often judged by the first impres­sion. Thanks to well-cho­sen jew­el­ry, con­fi­dence as a pro­fes­sion­al increas­es, which con­tributes to build­ing busi­ness rela­tion­ships.

Such ben­e­fits can­not be obtained by invest­ing your sav­ings in gold bul­lion, trea­sury bonds, open­ing a bank deposit or track­ing the quotes of your shares on the stock exchange.

Is it profitable to invest in jewelry?

Remem­ber world his­to­ry: sil­ver and gold are the her­itage of ancient cul­tures. Pre­cious ores do not suc­cumb to the rav­ages of time like oth­er met­als. Thou­sand-year-old jew­el­ry can still ful­fill its func­tion of util­i­ty, mean­ing invest­ing in jew­el­ry has out­lived its investors. Since such antiques are price­less, they end up in muse­ums, where vis­i­tors still mar­vel at their splen­dor.

In Ukrain­ian, and in world his­to­ry, there were sit­u­a­tions when the price of gold fell, so there is always a risk. How­ev­er, over time, it returned to its orig­i­nal val­ue, and then began to grow rapid­ly. This is because gold can­not be print­ed. It can no longer be mined or super­nat­u­ral­ly pro­duced. Pure gold is very rare in nature. Due to its noble prop­er­ties, it will always be in price. Sil­ver in its pure form is also not much, it is soft, so jew­el­ry is made from its alloys. When rare gems are added, a unique and valu­able prod­uct is obtained. Its val­ue is deter­mined by sup­ply and demand.
In order for the price of a prod­uct to rise, its demand must increase and its sup­ply must fall. Both fac­tors depend on glob­al trends and the exchange rate in Ukraine.

The pro­duc­tion of jew­el­ry goods con­sists of 4 com­po­nents that obey the laws of sup­ply and demand:

1. design (attrac­tive­ness, fash­ion, accu­ra­cy of exe­cu­tion);
2. man­u­fac­to­ry (labor — man­u­al or machine);
3. ore,
4. stones.

Each of them for dif­fer­ent prod­ucts will have a dif­fer­ent mean­ing. In the case of dia­mond acces­sories, the stones will car­ry the most weight; for artis­tic jew­el­ry, the sit­u­a­tion will be sim­i­lar to the art mar­ket. The main com­po­nents of the invest­ment will be design and pro­duc­tion. They are more risky because they are dif­fi­cult to describe with stan­dard indi­ca­tors. While invest­ments in the 3rd and 4th com­po­nents, that is, in ore and stones, are char­ac­ter­ized by much sim­pler tools.

The weight of its indi­vid­ual com­po­nents depends on the choice of the type of dec­o­ra­tion. If it con­tains a lot of gems, the val­ue will be deter­mined by the price of the min­er­als. Artis­tic, hand­made and unique jew­el­ry will have more val­ue due to the sec­ond com­po­nent — pro­duc­tion.

Brand aware­ness and rep­u­ta­tion as a jew­el­ry man­u­fac­tur­er can sig­nif­i­cant­ly affect its future val­ue. This makes it eas­i­er to sell the prod­uct in the future because the brand tells the poten­tial buy­er why to buy their jew­el­ry. They will delight you with their ele­gance and radi­ance, and can also be a long-term invest­ment for gen­er­a­tions, a kind of per­son­al invest­ment in the future of your chil­dren and grand­chil­dren.

Do not wait for a good peri­od when it is bet­ter to buy sil­ver and gold jew­el­ry, but start invest­ing with small amounts right now. Famil­iar­ize your­self with the cat­a­log, choose prod­ucts that are afford­able in terms of cost and order their deliv­ery to your city of Ukraine.