Investing in Jewelry

Some Things to Consider

Comprehensive Guide to Fine JewelryCredit:

The jewelry market is enormous and varied. From estate sales to consignment shops to individual retailers, new and used pieces command high prices. Before you consider purchasing a jewelry item, follow the tips below to get the most out of your purchase.

* Keep in mind that jewelry is not a sure thing for an investment. You are never guaranteed that the price you can get for your jewelry will exceed the price that you pay for your jewelry. That is the number one rule for jewelry purchase. Regardless of the deal you think you've gotten or the value you have insured your jewelry for, the investment value of a piece is only as good as the price you get for it on the day you sell it. 

    * When you decide to buy jewelry you want to make certain that you are getting what you pay for. Dealing with reputable jewelry sellers is the best way to be certain that you are receiving what you are paying for. 

      * It is good to have a basic understanding of the pricing criteria used for the type of jewelry you are purchasing. If you are purchasing a diamond for instance, the best known standards involve the 4Cs. You might want to learn about the different scales used to measure the cut, clarity, carats and color of diamonds. 

        * If you are considering purchasing pearl jewelry you will want to learn about the standards used inHow to Invest in PearlsCredit: pricing pearls. For genuine pearls, the type of oyster that produces the pearl and whether such pearls are less rare or rarer impact the price of the pearl. Nacre is another word that you will want to know about when it comes to pearls. Pearls with thin nacre are less durable than those with thicker nacre. To the eye, thin nacre will often make a pearl's surface look duller. If you purchase a pearl that looks like it has a nice luster you can also ask whether the pearl has been coated. Certain coatings are added to some pearls to make them appear to have luster when they don't. If the pearl is coated it has a much lower value and should be inexpensive to purchase. Smoothness of the pearl's surface and shape of the pearl as well as pearls with specific overtones can all impact the price of pearls. Naturally, the larger the pearl the more expensive it will be. 

          * If you are buying silver jewelry, much of the jewelry has a silver stamp on it indicating it is silver. You can research different stamps used to designate silver from different countries and from different time periods. 

            * Gold jewelry will indicate how many carats it is. The higher the number of carats the more expensive the gold jewelry will be. Jewelry will be marked with a 24K for instance if it is made from 24 carat gold. It is also interesting to note that there are not different markings for gold and white gold jewelry so that you can determine the carat value of either color gold jewelry. Platinum is also marked. For platinum, you will see a symbol that says PT950, for example. The platinum stamp is important for jewelry that claims to be platinum because platinum is more expensive than gold.

              * You should research any scams that are occurring in jewelry buying and selling going on at a specific time. More common scams are stones that are not real or clasps that claim a necklace or bracelet is made from silver or gold and only the clasp is made from silver or gold. 

                * Designer jewelry as a rule is more expensive than other kinds of jewelry. Designer jewelry offers the buyer some additional protections because the designer's mark is often on the piece of jewelry. Research the designer jewelry you are interested in purchasing, look for the designer's mark and then research the designer to see when that jewelry design was created and what it typically sells for. For those purchasing new designers' jewelry, there is the added protection that the designer is still alive and will actively be protecting both designer name and price. 

                  * If you choose to purchase older jewelry, your first consideration is the condition of the jewelry. Look for signs that stones or repairs were made to the piece. Ask the seller if they have any authentication for the jewelry. If there are any markings on the jewelry, look them up to see whether you can narrow down the history of the piece of jewelry. You will also want to be certain that the jewelry is not a replica of an antique piece of jewelry. Whom you purchase the jewelry from is critical in the purchase of used jewelry because the seller is your only recourse if you have a problem with the jewelry. 

                    * Obtaining jewelry appraisals is a good idea for insurance purposes. Sometimes appraisers will identify specific problems with the jewelry, such as if it's a fake. An appraisal can cost hundreds of dollars so it is usually not performed on less expensive pieces of jewelry. If you choose to have an appraisal of your jewelry done, make certain that the person performing the appraisal has a jewelry appraiser's credential. An ordinary jeweler should not be performing the appraisal. The appraisal is not a guarantee that you will get a certain price for the sale of your jewelry. The price you get for your jewelry is the price you can sell it for. 

                      * Insuring your jewelry can be expensive because it is an extra charge from normal homeowner's orThe 4 Cs of DiamondsCredit: renter's insurance in most cases. Investigate whether insuring your jewelry is the right option for you by determining the cost of the insurance and what it covers versus some other way of safeguarding your jewelry. 

                        * The only time you can be certain that you will get more for your jewelry than what you paid for it is if your jewelry was a gift. When you buy jewelry, therefore, you should look for value in terms of what you are spending for a piece and getting the most out of your budget rather than what you think you can sell it for.

                          Choosing what jewelry to purchase should be done with some knowledge about the type of jewelry you're looking for in terms of rate of return on investment. Use the tips above to help you before you make your next jewelry purchase.