Jewellery as an "investment"?

SavingPennies_2

Hi I don't know if this is the right place for this so I apologise in advance.

I have a money box into which I have been saving change, mainly £1 and £2 coins. The moneybox was a gift a few years ago and I only put in coins every now and then that I wont need/miss. The idea being that when its full I can spend it on a guilt free treat!

I love jewellery and am thinking of buying a gold necklace or ring, ideally set with a diamond or sapphire costing £400-800 (not sure how much is in there as its one you have to break open).

I guess it seems rather reckless and Im wondering if I can see this as a sort of investment. Given that the ring/necklace might hold its value or go up in value, compared to spending it on say clothes or a holiday.

Does this sound reasonable and if so what should I go for 18ct or 22ct? Stone or no stone? Antique or new?

As a bit of background I do not earn a great deal but I have no debts and have a regular saver account for rainy days, so I dont want to use the money for anything too sensible :A

calypso_rhapsody

Well if you don't want to be too sensible then buying a nice piece of jewellery is more sensible than blowing it on a holiday ...

Seriously, i have a lovely gold necklace that has increased in value dramatically but largely i think because of the increase in gold price than any increase in its aesthetic value. It costs a bit to insure as a result!

Why not buy something you like and enjoy in the hope that it might increase or at least hold its value? But i wouldn't really look on it as an investment unless you have exceptional skills in this area.

SavingPennies_2

calypso_rhapsody wrote: »

Seriously, i have a lovely gold necklace that has increased in value dramatically but largely i think because of the increase in gold price than any increase in its aesthetic value.

Why not buy something you like and enjoy in the hope that it might increase or at least hold its value? .

I was thinking very much along these lines, thanks for the advice.

atush

I would buy used, in a sale or pawn/estate broker. Buy for the 'break up' price of what it is worth as gold/loose stones.

Do not buy new, as they carry a premium and once you walk out it will be worth far less like a car.

shaun_from_Africa

MrInvestor wrote: »

I would suggest a gold bullion coin like a Sovereign - however you will not get half as much joy from it

I don't know about that.
A good bullion coin along with a suitable haircut and 'tash, and who needs jewellery.

McKneff

i would forget investment. I bought my OH a gold bracelet about 4 years ago for £400 from a trustworthy independant who we have always had good service from for years. So knew the price was correct.

As scrap gold it would be worth £280 (ie 28 grrms) at £10 per gram.

I bought a diamond ring .3 carat, 18 ct gold about 10 years ago, the most i got offered was £150.
Some idiot from Market Cross jewellers offered me £25/30, Dont even look in the window of the shop now.

Just buy something to enjoy.

jamesd

SavingPennies wrote: »

I love jewellery and am thinking of buying a gold necklace or ring, ideally set with a diamond or sapphire costing £400-800 (not sure how much is in there as its one you have to break open).

I guess it seems rather reckless and Im wondering if I can see this as a sort of investment. Given that the ring/necklace might hold its value or go up in value, compared to spending it on say clothes or a holiday.

It's an investment if you like self-deception. It's not an investment in any useful investment sense.

Gold prices are high. Diamond prices are high. Retail price markups are high. Each of those things will ensure that you're likely to see a financial loss on the deal.

If you want the item, buy it. Just don't pretend it's an investment. Accept it as the luxury it is and enjoy it as that.

If you want a real investment open a stocks and shares ISA and buy the Invesco Perpetual Monthly Income Plus fund within it. That will pay you around 7% tax free, so about £56 a year or £4.60 a month if you were to put in £800.

Continue to do that and broaden the range of real investments and then you'll be able to use your higher income level to more readily afford to by things later.