In the context of buying jewelry, I hear people say, "If I have to spend xxx amount, I might as well go for 'real' jewelry. Gold and diamonds are an investment."
There are too many words and concepts here. And the juxtaposition of those words and concepts proves to be a little confusing. Confusing to the extent that it has almost become a gospel of sorts.
Mind that word, investment. Dictionary.com defines 'investment' as:
Was just preparing the ground. Now let me get to the point.
When ones says 'investment', one is looking at appreciation of value. Few questions here, when will one decide to sell 'gold and diamond jewelry'? When it's an opportune time based on market prices? Or when it's a situation of monetary need for the owner of the jewelry?
I reckon most of the folks aren't following opportune market prices when it comes to gold and diamond jewelry. So the situation might be one of monetary need when one decides to sell such jewelry.
What does a typical jeweler do? Of course, he doesn't pay you for workmanship or art or labor. He would pay only for the purest gold and scarcest diamonds in the jewelry. There you go, you're not gonna get any return on the hefty price you paid for workmanship, unless it has some historical value. There was a time when the workmanship was nominally valued. No longer so.
And if the jeweler doesn't pay for his own workmanship, who will?
And what if it comes to a point where 50 customers with big 'gold and diamonds jewelry' simultaneously decide to sell their jewelry? Will the jeweler play a banker? If he anticipates more customers in the coming days wanting to sell their jewelry, will he honor those customers as well?
Your answer is as good as mine. A jeweler is a businessman, not a banker. He isn't a store of value for your savings like a typical bank is.
My two cents. Wear jewelry for enhancing the way you look. For indulging your taste for fineness, irrespective of whether gold or diamond or something. For maintaining a certain style. For making a statement if you so like.
Buy gold coins (not jewelry), if you are looking at investment. Keep the purposes of looking good and investing separate. That's when the greatest value will be unlocked. Clubbing the two might only lead to some burning.
As regards diamonds, I am very skeptical. Diamonds will be valued only if they are really unique. That means, scarce and with certain characteristics counted worthy of investment. Most diamonds in small jewelry might not count as scarce or worthy of investment. Diamond is forever. So is iron, copper, silver, gold, platinum, quartz, amethyst and whatever else.
These are heretical thoughts from the point of view of jewelry businessmen. You, the customer, needs to take care.
There are too many words and concepts here. And the juxtaposition of those words and concepts proves to be a little confusing. Confusing to the extent that it has almost become a gospel of sorts.
Mind that word, investment. Dictionary.com defines 'investment' as:
the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.And then there are words stated explicitly like 'jewelry', 'gold' and 'diamonds'. And there are unspoken words invoked by the explicitly stated words. Like 'jewelry' surely invokes 'workmanship' or what in common parlance, among the jewelry buying community, is stated as 'labor'.
Was just preparing the ground. Now let me get to the point.
When ones says 'investment', one is looking at appreciation of value. Few questions here, when will one decide to sell 'gold and diamond jewelry'? When it's an opportune time based on market prices? Or when it's a situation of monetary need for the owner of the jewelry?
I reckon most of the folks aren't following opportune market prices when it comes to gold and diamond jewelry. So the situation might be one of monetary need when one decides to sell such jewelry.
What does a typical jeweler do? Of course, he doesn't pay you for workmanship or art or labor. He would pay only for the purest gold and scarcest diamonds in the jewelry. There you go, you're not gonna get any return on the hefty price you paid for workmanship, unless it has some historical value. There was a time when the workmanship was nominally valued. No longer so.
And if the jeweler doesn't pay for his own workmanship, who will?
And what if it comes to a point where 50 customers with big 'gold and diamonds jewelry' simultaneously decide to sell their jewelry? Will the jeweler play a banker? If he anticipates more customers in the coming days wanting to sell their jewelry, will he honor those customers as well?
Your answer is as good as mine. A jeweler is a businessman, not a banker. He isn't a store of value for your savings like a typical bank is.
My two cents. Wear jewelry for enhancing the way you look. For indulging your taste for fineness, irrespective of whether gold or diamond or something. For maintaining a certain style. For making a statement if you so like.
Buy gold coins (not jewelry), if you are looking at investment. Keep the purposes of looking good and investing separate. That's when the greatest value will be unlocked. Clubbing the two might only lead to some burning.
As regards diamonds, I am very skeptical. Diamonds will be valued only if they are really unique. That means, scarce and with certain characteristics counted worthy of investment. Most diamonds in small jewelry might not count as scarce or worthy of investment. Diamond is forever. So is iron, copper, silver, gold, platinum, quartz, amethyst and whatever else.
These are heretical thoughts from the point of view of jewelry businessmen. You, the customer, needs to take care.
