Yes, jewelry can be viewed as an asset, especially if the jewelry in question is worth a lot of money and has held its worth over time.
It is thought that in recent years, jewelry has often become a more popular asset than various others such as New York real estate, gold, and even equities.
This changes quickly, however, as the market is extremely volatile. The demand for expensive jewelry such as diamonds and sapphires rises and falls often, and for this reason, many people are left feeling confused over whether their expensive pieces of jewelry count as assets or not.
You should also bear in mind that as with any assets, your money is not totally safe when you invest in jewelry as an asset. What we mean by this is of course that you can often lose money on returns.
Your jewelry assets may even depreciate, meaning you will not get back what you paid (or at least get less than you expected when you got it).
Of course, if the jewelry in question is a hand-me-down or family heirloom and you have decided to turn it into an asset, then this may not matter to you as any gain from it is beneficial if you did not pay for it.
Jewelry can be viewed as a capital asset in the sense that it can be treated in the same way as an investment into fine art, such as painting and sculptures.
Archeological collections may also be treated in this way. This is, of course, only relevant if the jewelry in question is being used for the purpose of capital gain.
With this in mind, it is also important to note that whether a piece of jewelry counts as a fixed or any other type of asset will depend wholly on its purpose.
What we mean by this is whether the jewelry is being used for personal use or whether it has been bought with resale in mind.
If the jewelry is bought as a gift or for personal use, then it will be counted as a fixed asset.
On the other hand, if you were to buy an expensive piece of jewelry with an ulterior motive of reselling it for profit, then it is clearly an investment piece. With this in mind, the jewelry is now a capital asset.
The best kind of jewelry if you are looking for a good investment are pieces that you are sure will hold their value or exceed in value. It is important to note that this can be extremely difficult to predict.
This is not just the case in the jewelry market but all markets. Whether you are thinking of investing in jewelry, gold, art, stocks, or real estate, no one can ever be certain that something will hold its value. For this reason, it can be so hard to know for sure whether something is a good investment.
That being said, if you do your research, consult professional experts, and choose your jewelry pieces carefully, then there is a good chance that your jewelry may just become the good investment you want it to be.
In order to make sure you make the right decision and choose a good piece of jewelry for investing in, we highly recommend that you consult an expert jeweler who has years of experience in the field. You can also check out the section below to see what kinds of jewelry hold their value well.
When it comes to investing in jewelry you may be rightly concerned about what sort of jewelry is worthwhile, and what you should avoid like the plague.
We don’t blame you for worrying that you are going to invest in rare, newly discovered gemstones only to find after a few years that they are actually pretty common!
As we have made clear already, it can be difficult to know for sure how well jewelry will hold its value.
That being said, some pieces of jewelry have performed consistently well over time and are considered worthwhile investments. These include:
– Rare pearls, especially saltwater pearls
– Vintage rings
– Signed rings by sought-after designers such as Cartier, Bvlgari, and VCA
– Very rare, colored diamonds
– Solid gold pieces (the higher the carat the better)
– Solid platinum pieces (again, as high a carat as possible)
– Burmese rubies (ensure that they are unheated or else they will not be as worthy)
– Sapphires from the Kashmir region of India
– Specific pieces that are performing well at the time you decide to invest (for example, at the moment it is thought that a certain bracelet by Cartier is a good investment, this is the Juste un Clou Bracelet)