Is jewellery an investment? In the traditional sense usually not. However, if the jewellery you're purchasing meets these 3 criteria, it's passable and even an ideal way to store your money.
1. Tangible Wealth
In an increasingly digital world, having physical assets is becoming even more appealing. Jewellery is a portable and wearable store of wealth. It's easily transported... plus which other forms of wealth can be a great compliment to a killer outfit?
2. Inflation Hedge
As NZ dollars begin to buy less and less, the value of precious metals in jewellery serves as a hedge against the decreasing value of the dollar. Gold, in particular, has historically maintained its value, acting as a reliable shield to protect your wealth.
3. Emotional Value
Possibly the main reason people invest in jewellery is sentimental value. This can't be tracked by charts and financial calculators. But passed down through generations, jewellery can become an emotional asset.
Conclusion
Jewellery is unlikely to multiply your wealth as an investor. However, as a store of wealth in uncertain times, as well as holding emotional value - it can still become part of an investor's portfolio.
Diversify wisely, and recognise that jewellery provides more of method of maintaining wealth, rather than growing it.
Mike
PS: If you need advice on which kinds of jewellery are best to buy from an investment point of view, contact us here. We're always willing to help!
