There is so much information available online, and I think sometimes it’s nearly impossible to separate the good information from the bad. Also, there is information that’s accurate but is presented in a way that suggests a course of action that might not be smart. I just came across an article online, for example, that talks about how jewelry retains its value.
The article was not inaccurate.
But I think it was horrible, nonetheless. It basically told people to invest in jewelry. Naturally, it was a jewelry store that sponsored the article. I have to tell you; I think the whole thing was unethical. There was accurate information in it but the impact of that information was presented poorly.
High-quality jewelry can retain or increase its value over time, making it a good investment. Is that true? Well, the first part is true. High-quality jewelry can retain or increase in value over time. In fact, if your great grandparents bought a ring, some earrings, and a necklace in 1940 made of gold, it would be a great investment for their grandchildren. An ounce of gold for all of that in 1940 would be worth $34.50. An ounce of gold today sells for more than $2700.
So, great investment if you plan to hold onto it for eighty years.
Who in the world plans to hold onto jewelry for eighty years? There’s more, too. Even if you hold onto it for twenty years, you face a discount to the cost when you sell. What does that mean? It means when you sell your jewelry to realize your investment return, you have to account for the fact that you’re selling it wholesale. That means you’re selling it for anywhere between 20% to 60% lower than its retail value.
What’s the truth? Because it is made from precious materials, jewelry holds its value better than other purchases. Does that make it a good investment? No. Nope. No way. Uh uh. Negative. If I knew more ways to say it, I would. If you want to invest, invest in gold, silver, and platinum bullion. Coins work well for that. If you want jewelry, get it to wear or to give to someone you love.
If you have jewelry you need to sell, I’ll buy it. That’s because it’s my business. If I weren’t a jeweler, I wouldn’t think of it as an investment. I buy it to sell it to customers. I do all I can to give you a fair price so if you need to sell, drop by my La Jolla showroom. You’ll be glad you did.
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