Buying jewelry is another way to invest in gold. It may seem like one of the easiest ways of buying gold – you only have to visit a jeweler and order something made of gold. However, it is much more complicated.
Investing in jewelry is especially popular in Asia, mainly China and India. According to the World Gold Council, over the last two years jewelry sales in China (including gold jewelry) have almost doubled. India is the biggest gold market in the world and jewelry makes up 77% of this market. One of the main reasons for this is the Indian culture and the way that wedding ceremonies are organized. Gold and gold jewelry is used to decorate the outfits of wedding participants. It is also often given as a wedding gift for the young couple.
Jewelry bought from a jeweler is always more expensive than gold coins or bars of the same weight. On top of the cost of the metal itself one must add the cost of designing and making a given piece of jewelry. The price is also influenced by the brand, demand, supply and age. The older it is, the more pricey. Investing in jewelry is very much like investing in wines or art, its main value is collector value. It is very hard to assess it objectively.
Old handmade jewelry from recognized producers is usually considered the most valuable. An example might be 19th century pieces of jewelry made by Faberge or Cartier. The market for these pieces is very limited. There are not only very few sellers, but also very few buyers. Once a given piece of jewelry is bought, it rarely returns to the market.
The sale of jewelry may be quite problematic. It usually cannot be sold to the central bank and the price of scrap gold is much lower than its market value. If the owner of a given piece of jewelry wants to sell it, they have to find the buyer – a collector willing to pay a satisfactory price for it – on their own. It may be time-consuming and decrease both the liquidity and profitability of jewelry investment. On the other hand, the value of jewelry, just like the value of gold itself, will never fall to zero. What is more, apart from being an investment, it can be used in everyday life for the decorative function that it is actually intended for.
To succeed in the field of jewelry investing a lot of theoretical knowledge of trends, history and various collections is necessary. A good intuition may also come in handy.
Where you can buy jewelry in the USA
One of the best-known chains of jewelers shops, present in many countries including the USA, UK and Germany, is Tiffany’s. It was established in 1837 and is considered one of the most prestigious jewelry sellers. Its products are characterized by high quality and elegance. Many other jewelry firms are also found in the USA, including Pandora, Swarovski, De Beers, FolliFollie or VanCleef & Arpels.
In addition to selling their products in traditional shops, some also offer mail-order sales.
The most popular internet sites that sell jewelry in the United States include:
Where to buy jewelry in Germany
On German market, like on the U.S. market, firms like Tiffany’s, Pandora or Swarovski can be found. VanCleef & Arpels has only one shop in Germany, which is located in Hamburg.
Internet sites that sell jewelry in Germany include among others: