Investing in Jewelry and Precious Metals

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If you’re thinking about taking up a new hobby and making some money in the process, you may want to consider investing in jewelry and precious metals. Gold — often considered a symbol of wealth — has been used as jewelry and money since ancient times and remains popular to this day. Investing in jewels and gold — along with other precious metals — is considered a sound investment strategy due to its intrinsic value.

Metal Mania

Although gold is certainly the most talked-about commodity, it’s not the only precious metal worth investing in. Other valuable metals include platinum, palladium, and silver, all of which has seen dramatic increases in value recently. Along with rising prices, demand is growing as well. These metals are not only popular in coins and jewelry, but also for industrial uses as well. Gold is crucial for the electronics industry, as it is used in several high-tech components, due to its ability to conduct electricity, resist corrosion, and protect against intense heat. Platinum is used in medical equipment, automotive parts, and computers. You’ll find palladium in catalytic converters because it’s tough. It also plays a key part in photo processing, water purification, and natural gas refinement.

Jewels Galore

With the U.S. jewelry market now worth an astounding $71 billion, more and more investors are looking to jewels — diamonds in particular — as an alternative to gold and currency. With the price of gold down a bit at the moment, investing in jewels has many people shifting some of their assets into diamonds and colored gems as investments because jewelry is mobile and holds universal appeal. In a pinch, investors can walk onto a plane easily without being detected, as they can simply wear their investment around their necks and fingers. Gold sets off metal detectors and you can’t carry millions of dollars of cash or an expensive painting on your person, so for more and more investors, jewels are the way to go.

Different countries seem to covet different types of gems. The Chinese love defect-free gems, forgoing larger, cloudy gems for their smaller, perfect counterparts. In China, rare pink and blue diamonds are the rage, while natural pearls are quite popular in India and the Middle East. The rest of the world continues to love diamonds.

Why Invest in Metal and Jewelry?

Investments in metals and jewelry are popular partly due to Americans’ concerns about inflation. Collecting metals and jewels guards against the effects of the national debt, spreading risk to combat economic turbulence. Considered an ideal way to diversify one’s portfolio, these investments can ease the minds of those who worry about future currency values.

You can invest in metals and jewels in several ways. You can buy gold jewelry; jewels such as diamonds, antique and newly minted coins; bullion bars; and exchange traded funds, as well as stock in mining companies.

While collecting precious metals and jewels can be a fun hobby, it’s also a serious investment strategy requiring forethought, research, and dedication.

Jewelry

This article was written by Richard Craft, an MBA student who hopes to help you with your personal finances. He recommends taking a look at the accounting jobs with if you’re interested in a career involving similar tasks as investing! Check out their website today and see how they can help you!