Jewellery continues to be a popular investment for wealth-conscious individuals, despite the recession. In the Knight Frank survey of passion investments, jewelry was the top choice of 23 percent of high-net-worth individuals, a jump from 22 percent in 2008 and 18 percent in 2006. Jewelry is the top investment among Middle Eastern and Asian high-net-worth individuals.
According to the report, jewelry is the most popular luxury item among the world’s rich, and in the United States, it ranks third in demand behind art and watches. According to the London-based Knight Frank, jewelry and other tangible assets are the top investment choices for the wealthiest individuals. The wealth report analyzes global prime property markets, wealth distribution, and investment sentiment.
The history of jewelry goes back thousands of years. The Cro-Magnons, who originated in the Middle East, began wearing jewelry around 40,000 years ago. The ancient Cro-Magnons used stone hung, teeth, and bone to create jewelry. Copper was also used in jewelry, 7000 years ago. Gold was also the preferred material of ancient Egypt, although colored glass was used in place of gems. Jewelry was also made in Italy, Greece, and Mesopotamia.
While most gold jewelry is not investment grade, you can still buy investment-grade pieces of jewelry at reasonable prices. For example, jewelry made from 14-karat gold costs a premium of at least two to three times the gold content. Investing in designer pieces is not a good idea when the goal is to wear your wealth. It’s a much better idea to buy investment grade pieces that you’ll wear on a daily basis or can transport easily.
Some pieces of jewelry have more sentimental value than monetary value. A five hundred dollar engagement ring, for example, can be an eternity-long heirloom. Its sentimental value will increase with time as it is passed down. Buying jewellery for your loved ones is one of the best investments you can make.
Besides gold, platinum is a popular choice for wealthy people in China. A new jewelry store called Da Ming opened on Wangfujing, a famous shopping street in Beijing. The store displayed platinum rings encased with diamonds for up to $1,150. Platinum appeals to those who are rich and well educated.