As an investor, you should always be looking out for a safe haven – an investment which is expected to retain or increase in value even during times of market turbulence. Gold is the most obvious safe haven but there is another one which should be considered as it can prove to be an intelligent investment move. Jewellery can be a smart place to invest your money as it tends to retain its value over the long term and is even used as a form of currency at times.
Avoiding the High Street
As you would expect, investing in jewellery can be highly complex and you need to take your time before you start spending huge sums. First, it is important to be aware that you will be losing out initially if you were to go to the High Street and start buying items because new jewellery is subject to VAT and you must consider the markup of the retailer, manufacturer and wholesaler. While the value may increase over the long-term, you will be taking an initial hit which is why it is worth trying to find vintage jewellery.
Invest in Vintage
Vintage jewellery prices have risen 80% in the last 10 years according to Art Market Research with Art Deco pieces proving to be particularly popular. Of course, materials are also a key factor when it comes to jewellery and value with gold, platinum, silver, pearls and diamond all being important materials worth investing in. You also need to consider the type of jewellery and this should be items which will always be popular, such as watches, necklaces, rings and earrings.
Developing an Eye
Auction houses are the best place to find vintage or second-hand pieces and you need to know the right names to look out for, such as Tiffany or Van Cleef. Once you have developed an eye for it, you can then start to look at antique markets and smaller auctions. You should always use the internet to cross-reference and verify information, get items valued from a reputable source and weigh your items with high-quality scales from places like RS Components.
Looking After Jewellery
Another reason that jewellery is a popular investment is that it is easily portable and easy to look after. You can keep your jewellery kept away neatly and safely in a box at home, but if you have items that are of particularly high-value then it is a good idea to keep them in a safe at home. It is true that you can wear jewellery without it affecting the value but you must take care of the items (such as taking off when doing the washing off). Additionally, you need to make sure that you have items insured – jewellery is usually covered by home insurance but high-value items should be individually listed.
Jewellery can be a smart investment to make and it certainly can be a safe haven, but it is also a complex area to invest in and you must know how to invest in jewellery and what items to look out for and what to avoid.
