GuyDesign® has been a Global Luxury Brand Since 2013...
Posted by Guy Michael Smith on October 23, 2019
Is Fine Jewellery, made of Platinum and Gold, embellished with Diamonds,Semi-Precious and Precious Gemstones an Investment? Though they can be incredibly Beautiful and are Desired by most, an Investment they are not. Most are valued as a commodity and some as a currency, with very few exceptions, in a Jewellery form, they are for the most part non-appreciating assets, consumer goods if you will.
Economist would describe these special consumer goods in the following terms:
Like all consumer goods, the creation of a Jewellery Piece, whether it be Commercial or a Custom Design, involve many steps and incur many costs to produce. These productions do not all happen in the same place of business, and they occur in varying cities and countries all over the globe in their areas of expertise:
The cost of the finished Jewellery Article increases exponentially at every step of production; each step involves its own costs, and profit to keep each segment of production Viable.
For each step of Manufacture there are individual costs and the Finished Jewellery Piece will reflect the culmination of those costs as a Suggested Retail Price.
To give you an Example involving Platinum... Oct. 2, 2018 The market Price for 1 ounce of Platinum was $831.00. A simple Custom Made Men's Wedding band containing exactly 1 oz. of solid Precious Platinum sold that day with a standard Jewelry Store price for $5,211.25 USD taxes not included. Men's Band rings are usually half as heavy but this is a True example of pricing Ounce for Ounce for Platinum.
This platinum ring will always have value for varying reasons as a strategic metal. The only way this simple platinum ring becomes a "break even Investment" is if the Market price for platinum soars to $5211.25 USD Plus applicable sales and maybe a Luxury Tax as well. By no means am I putting down platinum. I own a platinum and Diamond ring and absolutely Love it. As a Luxury Goods Item, Well made Jewellery in a classic style will have a resale value and can last a Lifetime or longer. Jewellery should be purchased for its Beauty and how Opulent you feel wearing.
Utility and Desirability are textbook definitions of Value. Value is not exclusively Monetary. Think about an article of Furniture you have purchased, a Car you have bought, a designer piece of Clothing... It is all worth something, just not what you originally paid. Planning for your Jewellery purchase and choosing the Best qualities and attributes for your Gems will bring you years of pleasure, and if you ever need to sell, it does have value, more so than anything else percentage-wise you may own. Remember that everything in Life you purchase has a markup. Everyone, Directly or Indirectly provides a Product or a Service. The markup represents a paycheck to someone. Without that paycheck, that someone, cannot buy the Product or Service that you provide. You might say "Markups make the world go round"
My next article will be on how to buy Fine Jewellery with recommendations on Color, Clarity, Certificate and the most important... Quality of Cut.
★★★★★ ★★★★★ ★★★★★
All prices are in USD