What is the best type of jewellery to invest in?

curious2012_2

Hello MSErs,

I need some advice and couldnt think of a better place to come to get it.

I am looking to invest in jewellery as an alternative to saving with a bank due to the current recession. I have been advised to invest in Rolex watches as they hardly ever loose value. But I am thinking that limited edition watches would be better right? and if so what types of Rolex watches should I go for? I was told that just because the watch has precious stones in it doesnt necessarily add value or help it hold its value e.g. diamonds are not always the best unless it depends on the type of diamond it is. How true is this because I always thought any type of diamond from any country is worth buying? A diamond is a diamond, right?

I have also been advised, by someone who works in a shop that buys jewellery for cash, that these watch makes are just as good as a Rolex; Cartier, Tag, Omega. What is your opinion? And if this is so what other makes of watches can you recommend?

I have also been told by friends that Indian Gold is a much better gold to buy as it holds its value. How true is this and why is this the case? And is there any other type of gold or jewellery I should be considering when looking to invest?

I appreciate your help and advice btw. I have been a frequent user of MSE just never registered so am taking the plunge today lol.

Take care and I look forward to your responses.

DiggerUK

curious2012 wrote: »

.....I have also been told by friends that Indian Gold is a much better gold to buy as it holds its value. How true is this and why is this the case? And is there any other type of gold or jewellery I should be considering.....

What you refer to as "Indian Gold" is 22/24ct gold. It has been the traditional way of holding gold in many parts of the world. You pay the spot/fix price of gold + a mark up for the dealer + a mark up for the work involved. You should stick to a max of 15% on top of spot/fix price for gold, but you do get some creative pieces of jewelry to wear. Don't forget, jewellery is VAT rated.

UK legal tender gold coins are VAT and CGT free.
Bullion and non UK legal tender coins are just VAT free.

Gold is regarded as a long term investment, unsuited for speculation. Some say it is in a price bubble, some say it is the only way to preserve your wealth. DYOR.
..._

srcandas

curious2012 wrote: »

I am looking to invest in jewellery

Not sure the question should be what types of jewelry but how you are able to buy and sell it? How are you going to value it before you purchase?

There was a lady on TV recently who had an Italian 19th century gold coin. It was in excellent condition. I without knowledge of gold coins would have thought it had some rarity value to a collector. It went for the price of the gold.

As for watches you are down to fashion. Who knows if the price of a Rolex will double or half in the future. And unless you are a big dealer how much would it hurt if just one of your purchases proved to be a fake.

From your post I can see you are not an expert in this stuff and as such I'd be very wary if I were you.

As for gold as part of a portfolio why not. Plenty of threads here point to the easiest and cheapest methods. If you are going to handle it physically (applies to jewelry and watches) don't forget to add in the cost of insurance.

But do remember there are no risk free guaranteed methods to getting rich. Be prepared to lose heavily as well as gain :beer:

westy22

The ratio of fake to genuine Rolexes out there is about 3:1 - and I'm not talking about micky mouse versions you buy on the seafront abroad for 20 euros; the fakes I'm talking about are really, really good - it takes an expert a good 20 minutes to make a judgement call and they have access to Rolex serial numbers and Rolex's own database.

that these watch makes are just as good as a Rolex; Cartier, Tag, Omega

They might be as 'good' as a Rolex as a timepiece but there is a huge variation in value - TAG Heuer ranges from £800 to about £4,000; Omega from about £1,200 to about £8,000; Rolex from about £5,000 to £30,000. Are you confident you know the differences?

I have been advised to invest in Rolex watches as they hardly ever loose value

Well, you lose at least 30% of the value the second you walk out of the retailers with a new one!

Linton

Sounds like a seriously bad idea to me unless you are independently wealthy and would like to dabble in something new:

1) If you are not a real expert in the field you will probably make serious mistakes in your purchases and sales. Could you with 100% certainty identify a real diamond from a collection of fakes? You will probably be buying and selling to people who are real experts who can and will use their knowledge to their advantage.

2) This sort of "investment" isnt an alternative to bank savings. With bank savings you can get your money when you need it. With watches or diamonds you need to find a buyer, and if the need for cash is urgent you may have difficulty in finding a buyer willing to pay a sensible price.

somethingcorporate

Diamonds are not just diamonds. Do your research on the 4Cs.

One small perfect diamond can be far more valuable than a large and obviously flawed one.

jimjames

Linton wrote: »

Sounds like a seriously bad idea to me unless you are independently wealthy and would like to dabble in something new:

1) If you are not a real expert in the field you will probably make serious mistakes in your purchases and sales. Could you with 100% certainty identify a real diamond from a collection of fakes? You will probably be buying and selling to people who are real experts who can and will use their knowledge to their advantage.

2) This sort of "investment" isnt an alternative to bank savings. With bank savings you can get your money when you need it. With watches or diamonds you need to find a buyer, and if the need for cash is urgent you may have difficulty in finding a buyer willing to pay a sensible price.

SOme excellent points. As with anything if someone is a novice someone else will be out there to take advantage of them.

Once you have sufficient bank savings then it is worth looking at other options whether that is gold, shares or watches but you can't use a watch to pay your mortgage.

curious2012_2

srcandas wrote: »

Not sure the question should be what types of jewelry but how you are able to buy and sell it? How are you going to value it before you purchase?

There was a lady on TV recently who had an Italian 19th century gold coin. It was in excellent condition. I without knowledge of gold coins would have thought it had some rarity value to a collector. It went for the price of the gold.

As for watches you are down to fashion. Who knows if the price of a Rolex will double or half in the future. And unless you are a big dealer how much would it hurt if just one of your purchases proved to be a fake.

From your post I can see you are not an expert in this stuff and as such I'd be very wary if I were you.

As for gold as part of a portfolio why not. Plenty of threads here point to the easiest and cheapest methods. If you are going to handle it physically (applies to jewelry and watches) don't forget to add in the cost of insurance.

But do remember there are no risk free guaranteed methods to getting rich. Be prepared to lose heavily as well as gain :beer:

thanks for your reply I completely am aware that one can never be sure if Rolex prices will go up or down on..in life one never can foretell these things....but I suppose I am willing to take the chance with a Rolex for various reasons. I have also spoken to a sales assistant in the Rolex shop and he advised me that the best Rolex that keep their prices are those in the Sports Collection. He also added that Milgauss and GMT were good models as well to buy....Ive always fancied a Rolex watch lol just for the sake of having one. Am not gona be wearing it, its just as an investment that I hope in 6 or so years time it would have made a little extra money for me...we shall have to see i suppose. thanks again for your advice.

droopsnoot

I have heard similar comments about Rolex being the ones to go for, as long as you can be sure they're genuine, and that seems to be the challenge. Keep an eye on the local pawnbrokers as well, my local one had an Oyster Perpetual Day-Date a few weeks ago for a lot less than I could find one listed anywhere else. As long as it's real.

curious2012_2

DiggerUK wrote: »

What you refer to as "Indian Gold" is 22/24ct gold. It has been the traditional way of holding gold in many parts of the world. You pay the spot/fix price of gold + a mark up for the dealer + a mark up for the work involved. You should stick to a max of 15% on top of spot/fix price for gold, but you do get some creative pieces of jewelry to wear. Don't forget, jewellery is VAT rated.

UK legal tender gold coins are VAT and CGT free.
Bullion and non UK legal tender coins are just VAT free.

Gold is regarded as a long term investment, unsuited for speculation. Some say it is in a price bubble, some say it is the only way to preserve your wealth. DYOR.
..._

Thank you so much for clarifying about indian gold...I was already scouting the jewellery shops to visit in Southall hehe....you see one thing i did notice with gold is that gold from different countries have different values...african gold I have found to not be entirely the best e.g. took my moms jewellery to the pawn shop some years ago and was informed that although it looked like gold but because it did not have like 'serial numbers' on it they could not count it as gold hence it was worth nothing...which really surprised me because it is proper gold. And with regards to UK gold coins, that is actually a good idea...considering I also collect coins...and so did my mom....I took over her coin collection and it sounds like a really good idea to add some gold coins to that collection ty for that idea :beer: just to find out where to buy the coins now :cool:....hmm...

grey_gym_sock

curious2012 wrote: »

I have also spoken to a sales assistant in the Rolex shop and he advised me that ...

what training and experience did the sales assistant have in jewelery as an investment? who regulates this kind of advice, and who can you complain to if it turns out to be bad advice?

personally, i find it difficult to justify investments that don't produce an income.