Jewelry is a fun way to spice up your wardrobe when it is feeling a bit drab or you need a change of pace. Did you know your sparkling pieces actually make a great investment? That wedding gift from your great aunt is now more than just a memento!
Many give or buy jewelry not just for their style but because they actually have a lasting value and turn a profit when the time comes. For example, selling jewelry pieces can help pay off debt and other expenses.
There are actually companies that allow people to purchase various jewelry pieces as a form of investment. Companies like Mene Inc. call them investment jewelry. The value of which increases over time - much like a standard investment would.
Many love this type of investment because you can wear the piece for now and sell it at a profit when the timing is right!
Get a necklace you love
The next question to ask then is, how does it all work? You will have to know which type of jewelry appreciates in value, what type you should get, and more. Here is how you can make your jewelry a worthwhile investment while looking stylish.
If you received the pieces as a present, good for you! You did not need to shell out money to make the investment because someone essentially gave it to you. But, you do not need to wait for a family member for you to make an investment. You can buy lovely jewelry of your own volition.
Here are the golden rules in the jewelry business:
The criteria for good, resellable jewelry is simple if you have done your research. You must be sure of its quality and the materials the maker used. The value of the design should be your priority as it will ensure a high resale value.
The first criterion is its overall look. Although trendy pieces are tempting, it’s advisable to obtain those that are classic and beautiful instead. Choose a piece that speaks to you on another level and something you would wear yourself. If you do not want to wear it, why would others? You can even get a customized piece for a higher resale value.
Choosing jewelry pieces you love even if no one wants them is more advantageous than getting an ugly piece. At the very least, you will still want to wear it if ever it does not sell. Imagine if the piece you dislike is not purchased; you would be stuck with something you do not want to wear at all.
For jewelry options in Colorado Springs, you can check out our other pages for beautiful pieces and even custom jewelry design services in Colorado Springs.
A beautiful investment
Most jewelry selling companies have a markup of approximately 20-35% for their products. For example, there’s a ring with precious materials that costs $100. It contains only $60 worth of the precious metals.
After a few years since purchase, markups for jewelry that contain gold, silver, and other precious metals increase. For gold you can find on eBay, the markup is usually around +1.25%. The markup in retail stores vary.
Some companies focused on jewelry will usually buy it at its real-time value to create more. If the company you purchased from does not have a buyback option, many others buy gold to scrap. All they need to determine is the weight and the purity of the metal.
We also have jewelry appraisers in Colorado Springs that you can work with. Visit our other pages for more information.
As all investments go, the stock market fluctuates. The jewelry market is no exception to this rule. Gold may be priced at $1,346 today and the next day at $1,033 or even lower. The same goes for any other precious material getting traded in the market.
The stock market is not the only thing you must think about in this case. Many metals have different values depending on the form you buy them in. For example, a gold bullion will definitely have a higher value than a gold necklace. However, you have more chances to sell the necklace to those looking for a nice piece and you can even wear it before selling.
Since you usually pay a premium to get gold pieces, some prefer getting jewelry they can wear to take full advantage of the item. Others prefer getting a bullion instead because the resale value is higher.
When selling jewelry, keep in mind that there are fees and commissions. It is essential to always keep this at the forefront of your mind when purchasing. Even if the piece is good, it is probably not worth buying if it is overpriced. This is because you will have a more difficult time to breakeven because of the high cost you paid in the first place.
Breaking even is the bare minimum of business and you would want to profit from reselling. So, balance the beauty of the piece with its price so you can still turn a profit.
At the end of the day, jewelry is like any other investment that you make, even in the stock market. There are many factors to consider before buying jewelry and reselling them to turn a profit. Resale values, the value of the metal, the stock market, and even taxes need to be analyzed before making your purchase.
Here at Lane Mitchell Jewellers, we have experienced jewelry appraisers in Colorado Springs. Having a trustworthy company helping you navigate through the jewelry industry will be helpful profit-wise. We have a variety of services and pieces for you to explore. Leave us a message at 719-685-2441 now!