It’s a question we get asked all the time- “why is jewelry a good investment?” We understand why people ask this, especially if they are needing validation before purchasing a piece with a high price tag. Maybe they’re purchasing an engagement ring, or a timeless bracelet for themselves. At Markman’s, we’re happy to educate our customers on why jewelry is so valuable, and what makes it a great investment.
Fine Jewelry vs Cheap Jewelry
It’s important to start by making the distinction between fine jewelry and costume (cheap) jewelry.
Whether you call it costume jewelry, fashion jewelry, or cheap jewelry, it’s all the same- it’s jewelry made of low-quality materials. Commonly used materials in inexpensive jewelry are brass, aluminum, and copper. These metals are used because they are cheap, but they become tarnished easily, and can even cause irritation or allergic reactions.
Sometimes costume jewelry will contain skin-irritant chemicals like lead, cadmium(a component of zinc), chromium, nickel, brominated flame retardants, chlorine and mercury. Scary, right? Interestingly enough, the luxury brand Chanel offers a line of costume jewelry. However, they still have a hefty price tag on their costume jewelry.
In contrast to costume jewelry, fine jewelry is made up of pure gems and metals, it is incredibly durable and long-lasting. Fine jewelry does not get rusted, water damaged, or tarnished, making it difficult to break. It can last you for years – making it an excellent investment. You can sell fine jewelry at any time in your life, even after years, and it will still be valuable.
Now that we know the difference between fine and costume jewelry, let’s talk about how fine jewelry can look great on you- and your investment portfolio.
Why Fine Jewelry is a Good Investment
Fine jewelry is always a good investment because the materials used, such as gold and diamonds, have always been in high demand. This holds true regardless of any economic factors happening. This high demand ensures you that your jewelry will remain valuable and profitable in case you have to resell it. Unlike cash, whose value fluctuates depending on the economy, jewelry with higher gold content is always valuable!
Don’t just take our word for it though- let’s look at the numbers. According to a Bloomberg article, jewelry is a strong investment. “In 2012 a 6.7-carat Kashmir sapphire auctioned for $206,500; last year a similarly sized one was bought for $550,000. That roughly tracks with the S&P 500 over that same time period—and unlike a stock, you can wear a Kashmir sapphire while it grows in value.”
When making an investment in fine jewelry, it’s important to go to a jeweler you can trust.
Jewelers you can trust in Knoxville & Chattanooga – Markman’s Diamonds
For three generations, the Markman family has specialized in hand-selecting diamonds and crafting timeless pieces of jewelry. Steve Markman is committed to providing every person who walks through the doors of Markman’s with the highest quality piece within their budget. You can expect to be impressed with the selection and the exceptional service when you visit our jewelry stores in Chattanooga and Knoxville. When you visit Markman’s, when can help you invest in fine jewelry such as:
- Engagement Rings
- Wedding Bands
- Anniversary Jewelry
Whether you’re looking to diversify your investment portfolio or you want to treat yourself with something beautiful, we have just what you need. We keep our finger on the pulse of today’s jewelry trends, and we offer contemporary styles as well as timeless pieces. Your perfect piece of fine jewelry is waiting at Markman’s, and we can’t wait to show it to you.