Are jewelries investments?

image from www.diamond.com

Like almost all questions in life, the answer to "Are jewelries investments?" is it depends. How so? Let me tell you why.

First, they can be another investment vehicle IF, yes that is a BIG if, that is your intention. Meaning when you bought them you said to yourself, "I will buy this jewelry, store it in the vault, and sell it next year when I expect that the price of gold or diamonds (of course, the precious stone that adorned your investment) will increase.

Second, it is not IF you bought it to flaunt. As you might have noticed, when you go to the pawnshop, they will give you only a fraction of the amount you bought the jewelry for.

However, when keeping a portion of your portfolio into precious metals and jewelries, make it a relatively small portion. In our part of the world, there is no ready exchange for selling jewelries. If you need cash pronto, liquidating you jewelry might take some time which will force you to SELL it at a LOSS.