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Why Do Jewels Hold Their Value So Well?



  • March 9, 2020
  • boss




If you have ever considered the different types of investment possibilities, then you probably eventually thought about jewels. And you may have wondered why they tend to hold their value so well. There are lots of different explanations for this. Still, as an investor, it’s almost better to think of the topic broadly rather than getting too specific . Especially if you’re just starting as someone who wants to participate in this style of investment, it’s best to look at the forest rather than the trees.

 

So start from the beginning and move outward. As investments, jewels maintain a specific and historical value for cultural and logistical reasons. Second, investing in gemstones is also a way to show a particular standard of living. If you walk into an event wearing expensive jewelry, not only do people recognize the value of the money associated with the investment, there is also social clout related to the presentation. 

 

And third, jewels hold their value because of scarce resources and opportunity cost. There are only so many jewels of a certain kind, and you have to give a lot up to get them.

 

As Investments

 

As an example, think of purchasing vintage engagement rings. These rings have held their value over a long time, and they also have cultural attributes. If you’re thinking about impressing someone with your knowledge of wealth, and you want to marry this person, how crucial would it be to do something unusual? In this case, giving them a vintage engagement ring shows a lot of thought, and it also is associated with a style of investment that can look very good to a potential marriage partner.

 

As a Way To Show a Standard of Living

 

If you’ve ever explored ways to show specific standards of living, then you know jewelry ranks way up there as a phenomenon. Movie stars, sports stars, high-class business people – they all wear expensive jewelry to showcase their wealth, their standard of living, and their genuine expressions of self.  It is a fascinating way that people communicate. 

 

If you think about specific musical genres, wealth is built into jewelry as a way to express the content of individual songs as well.

 

Scarce Resources and Opportunity Cost

 

Finally, think about how jewelry as an investment is a way to showcase scarce resources and opportunity costs. For every expensive piece of jewelry that you invest in, you are giving something else up. You are giving up investment in the stock market. You are giving up putting that money into furthering some other business venture or piece of equipment. 

 

The opportunity cost of jewelry is quite high, and that is why showcasing it as an investment gives people a specific observation into your way of thinking.