The common understanding that jewelry is not bought for investment purposes should precede any purchase of a ring, pendant, bracelet or necklace made from fine metals and precious stones. By the same token, purchasing an accent piece for a loved one goes a long way to communicate sentiment and affection, and if you want to buy an item of jewelry for yourself or someone you care for, there are ways to make the investment worth your time and money. Following a few jewelry buying tips will go a long way toward helping you make the best possible investment, especially when you consider jewelry resale value. Some jewelry, after all, retains great value over a long period of time, while other items devalue quickly as they fall out of style.
Timeless purchases are the best. In terms of precious stones, the most timeless cut is the round cut. Concerning gold, traditional yellow gold has the greatest long-term value. Other stones and metals may be more challenging to purchase for the sake of lasting value, but as a general rule, silver, platinum and pearls have held stable value over time. You are most likely to make a wise investment when you deal in timeless materials such as these.
As an added benefit, if you are able to purchase jewelry from a well-known, long-established designer, this brand value will increase the staying power of your piece. The jewelry resale value of an item from an established designer tends to be higher than that of a generic artisan. However, you need to do your homework if you intend to buy name brand material. Some designers come and go. Others, like Harry Winston and Tiffany’s, inflate the cost of materials simply through their reputation.
As you consider the quality, timelessness, and brand value of a piece of jewelry, remember the order of importance. The material quality is of first importance. If at some point, as a last resort, you must sell the item for cash, purer product always commands higher sale value (e.g., 18 karat gold is more valuable than 14 carat gold). A timeless purchase is the next most important consideration, as some cuts and designs have been made and exchanged for hundreds of years. Finally, a brand name rounds off the value chart. Brand designers produce art, and art always has intrinsic value, but that value is the least stable of the three considerations. Shop carefully and buy with an eye for the future value of your investment, even if you never anticipate selling the item back.
Sources Cited:
http://www.chiff.com/a/Buying-Jewelry.htm
http://www.memolink.com/index.cfm/beacon/earn_points.context.jewelry_buying_guide/
http://jewelry.about.com/od/jewelrymetals/a/gold_jewelry.htm
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