When people hear the word investment they naturally assume that you are talking about wealth and while that is the case, there can also be an emotional investment in purchasing jewellery for a loved one. Many mothers pass down their jewellery to the kids and so it is seen as a family heirloom that should be passed along through the various generations. With each piece of jewellery come many stories and memories that families talk about for many generations and it provides us with a connection to our past.
If people decide to buy silver jewellery then it may be for some kind of financial benefit and in times of economic uncertainty, it always makes sense to have some precious jewellery available because it tends to hold its value and in some cases, it even goes up in price over time. It is an asset that you can hold in your hand and so it does provide you with some kind of financial security and essential peace of mind which we all need. If you have never really thought about purchasing jewellery as part of your financial portfolio then maybe the following reasons for doing so can help you to make a smarter decision.
- It provides diversification – When people talk about having an investment portfolio, they always refer to things like stocks and bonds as these are surefire ways to succeed and jewellery never really crosses their mind. As with any investment in this life, you want to minimise your risk and while stocks and shares can be incredibly risky in uncertain times, you will always have your precious jewellery to provide some balance to your portfolio.
- It provides inflation protection – In times of high inflation, jewellery made from precious metals like gold and silver is a fantastic hedge against inflation. The value of your cash and your stocks and shares can decrease but we have been buying jewellery for many hundreds of years because it is a reliable way to hedge against ongoing inflation. As was mentioned briefly before, your jewellery can hold its value and in many cases, it goes up.
- It is a private asset – The unfortunate thing about investing in stocks and shares is that all of your information is easily available to whoever would like to look it up and so you don’t get any privacy at all when it comes to trying to secure your future. The beauty about investing in jewellery is that it is a completely private investment and so you can store it in your own home or a safety deposit box and only needs to know that you have it.
As well as investing in jewellery for financial reasons, you should never forget that it is a beautiful piece of art that is to be enjoyed and to be treasured. It adds glamour to any outfit and it allows you to bring attention to a certain part of your body that you want people to look at. From a necklace placed around your neck to a watch around your wrist, jewellery can make you look more beautiful and yet offers you financial security as well.
