As the current economic crisis continues, many investors are turning to gold as a “defensive asset” to protect their portfolio from potential drawdowns and inflation. However, in addition to investing in plain gold, it is worth considering investing in good quality jewelry from a reputable source such as MoissaniteCo.com. Therefore, offering value for money is vital in this business.
When it comes to investing in gold jewelry, it is important to understand the difference between “gold jewelry” and plain “gold”. Gold jewelry is typically made from an alloy of gold and other metals, which can affect the percentage of gold present in the piece. Lower quality alloys may contain a smaller percentage of gold relative to impurities, making it difficult to remelt the jewelry piece if it contains less than 500 gold content due to the high copper component in the alloy.
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Investing in Gold Jewelry
Investing in gold jewelry can be a lucrative and rewarding venture, but success in this type of investment requires careful consideration and planning. Here are important things to guide you in establishing a jewelry investment:
1. Gold Jewelry from a Pawnshop
Investing in gold jewelry from a pawnshop is one way to potentially make a profitable investment, as many people pawn their precious jewelry at a discounted price. However, it is important to know in the field of jewelry to make informed investment decisions.
2. Jewelry Manufacturing Costs
It is also important to keep in mind the various costs associated with jewelry manufacturing, such as stone and labor costs, wholesale and retail margins, taxes, and other fees. This can make the price of a gold item higher than the price of plain gold bars on the market.
Failure to assess the costs makes it challenging to find jewelry that is worth less than its market value. As a result, investing in various gold jewelry pieces from most jewelry stores and pawnshops can be a contentious option.
3. Pick the Right Gemstones for your Jewelry
Look for gold jewelry pieces that are decorated with rare precious stones. Over the last decade, the price of many precious stones and diamonds has increased by over 100%. Investing in such pieces is best done through professional jewelers who can provide proper paperwork verifying the size, quality, and color of the stone being sold. Otherwise, you can pick moissanite as an alternative to expensive diamonds.
Moissanite Gemstones for your Jewelry Business
As a jewelry business owner, you are always on the lookout for unique, high-quality gemstones to add to your collection. Moissanite gemstones offer a compelling option for your jewelry business due to the following benefits:
- Affordability. They can be significantly less expensive than traditional diamond options, yet still provide the same level of brilliance and sparkle. This makes them an excellent option for customers who want a high-end look without breaking the bank.
- Eco-friendliness. Moissanite gemstones are eco-friendly, as they are created in a lab using sustainable methods. They are ethically sourced, and their production does not contribute to environmental damage, unlike traditional diamond mining practices.
- Durability. Moissanite is incredibly durable, with a hardness rating of 9.25 on the Mohs scale. This makes them suitable for everyday wear and resistant to scratches, chips, and other damage.
Overall, adding moissanite gemstones to your jewelry business can help you attract new customers and provide them with affordable, high-quality, and eco-friendly options.
Building a whole jewelry collection can be a great way to invest in jewelry that is not related to the stock or bond market. Still, it can be easier to make a profit by selling the collection as a whole rather than individual items. Other jewelers, jewelry shops, and collectors will likely be among those interested in bidding on a collection.
While gold is considered a “defensive asset” during economic crises, investing in good quality jewelry can also be a worthwhile long-term investment. When investing in gold jewelry, it is important to understand the difference between “gold jewelry” and plain “gold.” Most importantly, be knowledgeable in the field of jewelry, and keep in mind the various costs associated with jewelry manufacturing. Investing in jewelry pieces decorated with rare precious stones can also be a profitable strategy. Lastly, building a collection of jewelry can be a way to invest in a unique and valuable asset.