Investing In Jewelry

    To the serious and single-minded investor Gold, Platinum and Silver jewelry items are unlikely to come near the top of the potentially profitable opportunities that he or she will research.

    It is reasonable to propose, that before venturing into this market, a tremendous amount of investigation should be carried out and knowledge assimilated that is not relevant to other investment vehicles.

    Reliable contacts and dealers in the jewelry trade must be sought out and cultivated.

    Perhaps most importantly the investor should treat jewelry as an all-consuming hobby so collecting aesthetically pleasing items that may, or may not, show a profit will still give pleasure.

    This is as good a reason as any to explain why many savvy female investors take an interest in this market.

    Silver jewelry as an investment, unless in the specialized antique market, is unlikely to provide serious investment opportunities unless sufficient volume can be purchased to produce a profit on the melt down value of the metal.

    Investing in Gold Jewelry

    Gold Jewelry as an Investment Vehicle.

    Points to consider

    Gold jewelry has been around for thousands of years, it has never gone out of fashion, never dates or fades. As a consequence there is a choice of two investment paths to take, antique or modern.

    Antique jewelry with or without gemstones follows the pattern of other antique items in so far as age is not by any means the overriding factor.

    There will be items of 100 years old or more that may not have a scarcity value to attract buyers into paying a premium over the basic value of the metal and gemstone content.

    Entering this end of the market will therefore require an additional specialized knowledge of antiques and hallmarks. This will also apply to the antique silver jewelry market.

    2700 tonnes of Gold is used annually in manufacturing jewelry.

    Gold has a tendency to wear away over time and decrease in volume and weight when in use. It can also be subject to scratching resulting in loss of weight.

    It is important to be familiar with the hallmarks and the symbols denoting purity. 18K means that the item is 75% pure, 14K = 58.5% pure. 1K is one twenty fourth part of 100% pure metal.

    The balance is made up of other ingredients to make the item more durable or whiter.

    It is believed that half of all the gold sold in the United States is stamped with a false

    Karat weighting so only deal with established, reliable and registered merchants.

    Trust is paramount; it is easy for jewelers to take advantage of unsuspecting investors who are not fully versed in the pitfalls of the market.

    Investing in Platinum Jewelry

    Platinum Jewelry as an Investment Vehicle.