Jewelry As An Investment - Before You Buy That Valuable Jewelry Piece

Tommaso Design(tm) Pear Shape 8x6mm Genuine Orange Sapphire and Diamond Pendant
If you want to know if you should invest in jewelries or not, you will most likely need the following information.

Jewelries are usually made of gemstones, metals and/or some other types of materials. A natural gemstone may be treated to remove some of its flaws and may be called a treated or enhanced gemstone.

What will be valuable in a jewelry piece are some natural gemstones and the precious metals the jewelry piece may contain.

Your Jewelry Piece Information And Details

What that means is, if you want to know the value of your jewelry piece you will need to know the values of what it may consist of, that is, its gemstones and precious metals. The grading reports/certificates and other types of information that may have been provided along with your jewelry piece should provide you with the information and details on what your jewelry piece consists or is made of.

You should already have such information for the jewelries you own, however if this is not so, you may ask your jeweler for them again.

For the new jewelries you may be interested in, you can simply ask a jeweler for such details/information before you buy or you may check the details for the jewelry pieces on a jeweler’s website before you place any order. Reputable jewelers, stores and online sites should be able to provide you with such information even before you buy, the details/information should already be on their sites for anyone to see or preview

Determining The Value Of Your Jewelry Piece

To determine the current value of the gemstone(s) in your jewelry piece, you will need to do some research and check for some of the online websites that typically keep track of trends on gemstone values or you may ask a reputable jeweler online or offline directly, for the current market prices of valuable gemstones.

You will need to know what the cut, carat, clarity and color of the gemstone(s) in your jewelry piece is or if it is a pearl gemstone, the pearl quality, which should be available with your jewelry information/details, in order to determine its current market price. You can learn more about cut, clarity, pearl quality, gemstone grading reports/certificates etc at Easily Determine If Your New Or Old Jewelry Piece Is Valuable Or Not.

To determine the value of the precious metal in your jewelry piece, you will need to know and determine too the percentage of the metal content in your piece, the weight of the metal and the current market price of the specific precious metal. You can get some current market prices for precious metals in the newspapers or from some online sites too.

The amount of precious metal in your jewelry piece is what will be valued to determine your jewelry metal current value, other types of metals that may have been used as alloys to turn the metal to jewelry will generally not be valued along with it.

Troy ounces are used as a unit of measurement for precious metals and

  • 1 troy ounce = 31.103 grams

The current market value for the precious metal in your jewelry piece will be

  • The price of 1 gram of (precious) metal x the percentage of the precious metal in a jewelry piece x the weight of the jewelry precious metal (in grams)

  • The price of 1 gram of a precious metal = the current market price of the precious metal / 31.103

For example, for an 18K gold jewelry (which would contain 75% of gold metal) with a metal weight of 10 grams, if the current market price of gold is say $1000, the current value for 1 gram of the gold metal in the jewelry piece will be:

  • Price of 1 gram of gold = 1000 / 31.103 = $ 32.15

The current gold value for the 18K jewelry piece will then be

  • 32.15 x 75% x 10 = $ 241.25

This can be converted to other currencies too if you want, you may convert this to your country's currency for example.

You can calculate the current market value for the other types of precious metals in your jewelries too with this method. The total sum of the current value of your jewelry piece will then be the current value of your jewelry’s gemstone(s) plus the current value of its precious metal content.

All of these will also apply to any new jewelry you may want to buy too, once you buy a jewelry piece it will usually be valued in the same manner.

You can use this to determine the value of the jewelries you already have and those that you may be thinking of buying too. You can actually have some idea about the current market value of a jewelry piece even before you buy it.

The Major Difference Between The Gemstones And Metals In Your Jewelry And Buying One Or More Gemstones, Precious Metal Bullions, Bars etc Separately

A gemstone may be bought on its own and not necessarily as part of a jewelry piece. And precious metals are generally sold on their own too for investments in the form of bullions, bars etc, which would usually contain a high amount or percentage of some specific metals.  

Generally, it will probably cost you a lot less to buy a gemstone alone and separately on its own (possibly from its original source) and/or some precious metals as bullions, bars etc than buying them as jewelries for investment, since each jeweler would have most likely added their own profit margins and costs to the jewelry pieces they sell, making them more costly to buy as investments.

In addition to this, you will also only get the scrap value (that is, the value of the actual metal content) for the precious metal in your jewelry piece too and not the actual retail price you may have paid for it.

Since some natural gemstones and the precious metals have some inherent or real value, they are therefore ideal and could be bought as jewelry to be passed down as heirlooms or converted to cash when there is a need for it, they can also be used as collaterals for loans and may be bought just to be worn too. 

However, if you are buying your jewelries solely with the intention of turning a profit later on, you should understand that you may not get the retail value you paid for them now or at a later date as explained earlier.

It may be more ideal for you to buy your valuable gemstones and precious metals on their own separately for investment purposes. However before you do this, you should ideally do some effective and adequate research of your own too, to know how specific types of gemstones and precious metals might have appreciated in values over time before you invest in anything.
It is also a very good idea to find out about the best way to invest in gemstones and precious metals from those who may have more experience with it, before you start too. Gemstones and precious metals values may or may not appreciate/increase over time, the gemstones that are more likely to appreciate in value are those that are rare.

For vintage and antique jewelries, in addition to the cut, carat, color and clarity and the possible pearl quality of their gemstones and the precious metals they may contain, their present condition, and the period, antique or vintage value they may have and their brand (that is, the company or designer that made them) too may also determine their values too.

Some vintage or antique signed (branded) costume jewelries may be valuable too because of their brands and the fact that they may have some vintage or antique value, since they may not contain any valuable natural gemstone or any precious metal.

However jewelries with some valuable natural gemstones and/or the precious metals will generally have some real value whether they are branded, vintage, antique or not, while a costume jewelry will usually not have such benefits. Hence it may be easier for you to sell your jewelry piece now or later on, if it actually contains some valuable natural gemstones and/or precious metals than if it is merely just a costume jewelry piece made by a brand.

Some Of What You Can Possibly Do Next

You may choose to take some of the following steps before you begin or start with any form of jewelry investment:

●  Do some effective and adequate research of your own first

●  Find out from some experienced investors on how this actually works for real

●  Compare some gemstones and precious metal trends for a few years from several
  sources. That should give you some idea on how the prices of different types of some
  gemstones and precious metals may have been changing over time. Some online
  sites may provide some of these data for free.

●  Know how much your jewelry is really worth right now by doing some research on
  this as explained earlier.

You may also choose to do an official (documented) appraisal of the jewelries you own too if you want, some jewelry appraisal companies can do this for you online or offline. You will need to do some research in order to get a reputable company to use.

The appraised value of your jewelries can be used to provide a replacement value for insurance. The appraisal can also provide you and those you may want to sell your jewelries to, with the details and information about your jewelries, especially if you don’t have such information with you. Getting an official appraisal for your jewelries is optional though.

You should however be prepared to only get paid for your jewelries based on the resale value that the different targets/markets that are available for you to resell your jewelries too may want to pay for them at any point in time, whenever you are ready to sell. You may choose to sell your jewelries to those in the jewelry industry like jewelers, jewelry stores, jewelry resellers, gold buyers, diamond jewelry buyers, pawnbrokers or to individuals, businesses or through auctions.

Any one of these targets/markets will mostly buy from you if they can resell at a profit or if they think they are getting a bargain. Hence you should generally expect to receive resale prices that are mostly close to wholesale prices or less for your jewelry piece and not its retail price or appraised value.

●  You may also choose to use a consultant too (that is, an expert) for this, that is, if
  you think you need such services.

You May Also Like:

The Difference Between Valuable And Expensive Jewelries And Their Worth
Easily Determine If Your New Or Old Jewelry Piece Is Valuable Or Not
Valuable Jewelries: The Metals And Gemstones That Make Your Jewelry Valuable
Types Of Jewelries
Types Of Gemstones
Types Of Jewelry Metals

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