If you are wondering if wedding band sets and diamond-encrusted bridal jewellery are a worthwhile investment then this article will shed some light on that. In some respects, wedding bands and diamond jewellery possess qualities that enable them to act as value-preserving investment options that will last for a lifetime or in other words a sound investment.
Even more so when you realize that wedding bands will significantly appreciate in value, that possibility might be considerably less. This article will address both concerns, as well as how to implement strategies for optimizing the potential resale price for a piece of wedding jewellery that may have sustained damage.
Diamond jewellery As A Store Of Value
Many people look at diamonds and other precious metals, as a hedge against inflation, or world financial market collapse. Diamonds tend to be tradable, and valuable in the midst of uncertainty in the financial markets, which is definitely a positive characteristic.
Designer jewellery, particularly the ones that feature diamonds, is very much in demand due to the scarcity of these rare & explicitly precious stones. This makes them a potentially good investment. When an asset, when the supply becomes limited of such a designer diamond jewellery, yet it is significantly in demand by the wealthiest people among us in society, it typically exhibits favourable market dynamics.
Though these three aspects of diamonds as an investment are true, that does not mean that you will necessarily get back the money you pay for diamond jewellery if you buy it at retail prices.
This guide to selling a loose diamond by RingSpo provides a thorough explanation of these issues.
Selling Your Diamond Jewellery For Maximum Return
If you do wish to sell your diamond jewellery, there are multiple different ways you can go about it, each with its own positives and negatives.
Auction
You could consider an auction of your jewellery. Auctions can at times yield higher than expected returns, but it can be a timely process, and there is no guarantee that the auction process will enhance your return.
It may be hard to find an auction house that is willing to take your piece of diamond jewellery into the auction, and even when they do it may take quite some time for your particular item to go up for bidding.
Though auctions historically can be very good selling mechanisms for getting a good sale price, due to the competitive instincts they can create in different bidders, this only happens when the piece of damaged jewellery is very rare, and in high demand.
Consignment
Selling diamond jewellery via consignment, to a local jeweler is a very good way to get your jewellery in front of potentially interested buyers. But after the jeweler has taken their commission, the price you get for your jewellery may be less than you are expecting. In addition to that, it is often very hard to find a jeweler who wishes to take jewellery on consignment because it is usually more profitable for them to sell their own stock.
Private Buyer
It is possible to sell your jewellery to another private buyer. The positives of this process are that there is no middleman to take a percentage of the sale price, however, it does come with the risks of dealing with another individual, who may have adverse motives, or intentions, and you are putting your personal safety at risk by doing so.
Local Jeweler
Selling your diamonds to your local jeweler can be one of the most convenient ways to sell your diamond jewellery. In many cases, you will have a pre-existing relationship with the jeweler, if not it’s not hard to find one.
The downside of this process is that you may experience a big reduction in the amount of money you get for your diamond jewellery. Firstly, the local jeweler may not value your diamond jewellery to the extent that you do, and they are also very selective about what they choose to purchase. A jeweler wants to ensure that the stock they have will not be stuck sitting in their display cabinets for years to come, so they are only likely to buy your piece if they feel like it will be popular with their customers.
In Conclusion
As soon as you purchase a piece of diamond jewellery from a retail jeweler, you are likely to experience a 50% drop in value instantly. That’s not to say that diamond jewellery is not worth purchasing for other reasons, but it’s important to enter those transactions with your eyes wide open.
If your aim is to buy a piece of diamond jewellery for yourself, or for a loved one for the purpose of expressing your care and appreciation for them, then diamond jewellery is a great way to do that.
But if your primary concern is the preservation of economic value, and having that asset appreciate in value, then diamond jewellery may not meet your investment criteria.