Jewelry as an investment?

[black jade]

Americans don't understand this mindset, never having had to leave the country fleeing terror regimes, nor having had the government confiscate private property or devalue the currency to nothing. when they hear 'investment' they think of stocks or real estate, not of having to depend on what's in the jewelry box to get across the border if $$$ suddenly became no good. Nobody would care about the little CCs or the Tiffany blue box then! they would only want solid 24K stuff, no matter how what the design was.

My family isn't from a country that had a disaster like that (all too common in the 20th century, let's hope the 21st is a bit better), but we are from a country where the women's jewelry is their savings account. People gift girls with gold and silver jewelry from when they are young (few precious stones, no diamonds) and then you have the bracelets and earrings and rings that belong to just you, not your husband, to pawn or sell in times of poverty. and you buy it back when you're doing better again.

I don't operate like that now, we have savings and stocks and bonds and a 401K and a home with equity--but I can't get over the mindset when buying jewelry. I can't BEAR to pay markup for a 'design', no matter how pretty, especially not a mass-produced, machine made design like the ones at Tiffany. I want as high carat gold and as high carat silver as possible. I have only gotten into diamonds recently, because they do resell for nothing usually don't they. I got a couple with the best certs (AGS) and hope I'd get SOMETHING back for them if I had to resell, and I've since drifted over to buying mostly from pawnshops, on the theory that if I paid nothing much for them, it won't be too upsetting to have to re-sell diamonds back for less than nothing (quite often they don't even count diamonds in the price when they buy scrap jewelry back--just weigh the gold and calculate from there).

I also really have trouble forking out $$ for a handbag (which makes me strange on this forum, I know). I have a couple of coach bags, because I can see that they are made of fine leather and nicely sewn--I can't bear to pay for any kind of canvas bag, no matter what its treated with or anybody's monogram--it just seems to me to have no intrinsic value at all.
I saved enough money several times for a monogram handbag (won't mention a specific brand name)--but when push came to shove, I bought 22k jewelry with the money instead.

It's a different point of view of I know.

Y'all can start throwing the stones now.

 

[lanasyogamama]

^ I'm not throwing stones, I think it's interesting to hear different perspectives and experiences. You're right that Americans haven't experienced that, and I don't think that is an insult.

 

[Vegas Long Legs]

So once again, people who view jewelry as an investment in that way aren't talking about resale value or brand names or designs. They view their jewelry the same way many Americans would view investing in gold coins or bullion.

This clears everything up. Thanks for the post.

 

[Hurrem1001]

investments i make w the bank...jewellery i buy bc i love it and will hopefully wear for yrs. i do think jewellery, like everthying else, is overpriced. i also hope that one day my niece or a daughter i may have can inherit my jewellery collection. in terms of maintaining value though... it just wont. pretty much any consumer good depreciates except maybe art work. basically for jewellery i look at worth in terms of pleasure i will get from the piece and durability and quality of item.

I totally agree. I'll never get what I paid for any of my jewelry, but it doesn't matter because I'm not getting rid of it. I love it, and it'll be passed onto future generations when I'm gone.

 

[twin53]

^^
i agree. i give pieces to my niece who tells and shows everyone what her auntie gave her...those pieces will have a history when she hands them down to her daughters etc...

 

[Vintage Leather]

My jewelry is an odd mix - half investment and half play.

I have classic costume jewelry from the 20s through 90s. Costume jewelry is 17k gold or less, sterling. No matter what the name is, it's costume. I don't expect to get anything out of it - it's fun for the weekend, casual occasions.

18K + is my fine jewelry. While some of it is branded, I picked up those pieces at estate sales and antique stores for the cost of weight or (the most I am willing to pay) weight + 20%

 

[Mimster]

Americans don't understand this mindset, never having had to leave the country fleeing terror regimes, nor having had the government confiscate private property or devalue the currency to nothing. when they hear 'investment' they think of stocks or real estate, not of having to depend on what's in the jewelry box to get across the border if $$$ suddenly became no good. Nobody would care about the little CCs or the Tiffany blue box then! they would only want solid 24K stuff, no matter how what the design was.

My family isn't from a country that had a disaster like that (all too common in the 20th century, let's hope the 21st is a bit better), but we are from a country where the women's jewelry is their savings account. People gift girls with gold and silver jewelry from when they are young (few precious stones, no diamonds) and then you have the bracelets and earrings and rings that belong to just you, not your husband, to pawn or sell in times of poverty. and you buy it back when you're doing better again.

Very true. Many cultures practice this. Gold jewellery is the property of the wife/woman. Even though we live in a very prosperous country, it is still common to give gold jewellery (22 or 24K) to newborn girls and new brides.

 

[Stophle]

And here is where the cultural aspect comes into play. Currencies of countries are only valuable because people have decided that they are, the same with stocks. Mostly, they are just pieces of paper. For many countries, the value of their currency can change and inflation can make it change. A crash in the markets can make stocks worth next to nothing. Those things are entirely subjective.

24K gold, however, has been considered valuable for millenia. If a country's currency devalues, a person's gold still has value - indeed, it has MORE value than when the currency was strong. Gold is one of the best investments a person can make. While Americans consider gold another investment and buy it differently, in many other countries their investments in gold come in the form of 24K gold jewelry in their hand, not a piece of paper stating you have purchased X number of shares of something.

So once again, people who view jewelry as an investment in that way aren't talking about resale value or brand names or designs. They view their jewelry the same way many Americans would view investing in gold coins or bullion.

Valid points, definitely. I suppose the value of jewelry/gold depends on the state of the world economy and affairs. If there were to be some sort of cataclysm, people would value weapons, food, and tools much more than shiny pieces of metal. It's all completely subjective and dependent upon outside factors, which is the point I was making. Which is why, in the end, if you're going to spend money on something, it should be because you love it.

 

[HauteMama]

^ In the US that is generally true. But again, black jade makes the point that the rest of the world doesn't necessarily function that way. Gold is and always has been highly valued. The ancient Egyptians valued gold; the Mayans valued gold. Even when countries fall into chaos and war, gold is the currency that can be depended on. Never in human history has the entire globe fallen into cataclysm - societies have fallen and countries have crumbled, but never has the entire globe fallen into pure survival mode. Until it does, gold will continue to be the most dependably valuable currency, regardless of country. And even when/if the entire world DOES crumble, I would still bet that those who "have" (have the basics of survival and the things they need) would be swayed by gold.

Labels, designers, names, those things are completely subjective and dependent on outside factors. Gold has ALWAYS been valued since humans first discovered it. It has been the most dependably valuable substance for over five thousand years, and it is literally inconceivable that there would be a time when it meant nothing. But especially in today's world, gold is the most valuable thing a person can own in many places, and it is the one currency they can depend on when a country slides into chaos. In the end, for many people, if they are going to spend money on something, it had better hold its value. Jewelry does not. Pure gold does (and jewelry just happens to be how it is usually sold).

 

[Vegas Long Legs]

Thank God Im at peace with dying. If the entire world crumbles, could careless about being in it.

 

[NewStyle]

Black Jade and HauteMama, you make a very good point about the intrinsic value of gold. Coming from a culture where this is highly practiced, it's hard for me not to appreciate it greatly. I do thing we should strike a balance though, as many other posters have mentioned it is important to buy things that you love.

How did you ladies find this balance? I like your idea of buying used BlackJade. Can I ask if your married or ever plan to... did you or would you get a diamond ring? I ask bc knowing that the value of of diamond is extrinsic I would have a hard time forking up the money (or letting FH) for a ring. I'd rather spend the money at a gold market in India or Dubai.

lanasyogamama is the cartier bracelet solid gold? I was under the impression it was only coated with gold... am I wrong? Dear God! tell me I'm wrong so I can finally justify it to myself to get one!

 

[tbbbjb]

Black Jade and HauteMama, you make a very good point about the intrinsic value of gold. Coming from a culture where this is highly practiced, it's hard for me not to appreciate it greatly. I do thing we should strike a balance though, as many other posters have mentioned it is important to buy things that you love.

How did you ladies find this balance? I like your idea of buying used BlackJade. Can I ask if your married or ever plan to... did you or would you get a diamond ring? I ask bc knowing that the value of of diamond is extrinsic I would have a hard time forking up the money (or letting FH) for a ring. I'd rather spend the money at a gold market in India or Dubai.

lanasyogamama is the cartier bracelet solid gold? I was under the impression it was only coated with gold... am I wrong? Dear God! tell me I'm wrong so I can finally justify it to myself to get one!

I *LOVE* your thread. It gave me an aha moment. I never really knew why ladies from certain countries wore or could afford all that jewelry. I just thought that it was a tradition. And I guess it is, but I really like the reasoning behind it as it makes total sense now. You have really opened my views on jewelry.

I have always told my husband that it is in an investment and I could pass it down, etc. And I have been pretty adamant about buying 18kt (I have always had expensive taste and thought that it looked better) and yellow (the yellow was because I have an allergic reaction to silver and so I always wore gold and then I decided that I did not like the way silver looked on me so I never bothered with platinum or white gold). I have bought a couple of 22kt pieces, but to me they and the 24kt pieces I have come across have most of the time looked like fake gold, kind of an other the top look. KWIM? But, now I understand why the design never really mattered just the gold content.

My mother had always said that one of the reasons that my grandfather and her family were able to make it through War II was because they had always invested in diamonds which they ended up using to barter for their lives.

So on some level I knew what you had stated, but I was never able to put it together until now. So, I thank you for that and I am definitely going to keep this in mind when I make future jewelry purchases. I always bought what I liked but tried to stay away from the trendy pieces because I thought classics would hold their value better. Now, I see that that does not matter only the weight and purity of the gold.

So, Thank you for that. BTW, not to give you a reason to buy the Cartier bracelet, but it is solid gold. Sorry, NewStyle.

 

[BagsRmyLife]

It's definitely a cultural thing. When I got married, I received lots of gifts of gold from close family. And when people in my family get married I'll be doing the same. My mother ALWAYS tells me about the value of gold, to this day. When I got married a little over 3 years ago gold was about $600 an ounce and now it's double. I think that' a good investment. Plus it's all 22kt which is always valued at more.

I don't plan on keeping all of my jewelry my whole, whatever is sentimental to me (like my mother's jewelry when she got married). The rest is pure "investment". Unless I melt it down and make something else out of.

The other thing, no matter where you go, gold is gold. It worked when there was no such thing as paper cash and investments and it still works now.

 

[NewStyle]

I *LOVE* your thread. It gave me an aha moment. I never really knew why ladies from certain countries wore or could afford all that jewelry. I just thought that it was a tradition. And I guess it is, but I really like the reasoning behind it as it makes total sense now. You have really opened my views on jewelry.

I have always told my husband that it is in an investment and I could pass it down, etc. And I have been pretty adamant about buying 18kt (I have always had expensive taste and thought that it looked better) and yellow (the yellow was because I have an allergic reaction to silver and so I always wore gold and then I decided that I did not like the way silver looked on me so I never bothered with platinum or white gold). I have bought a couple of 22kt pieces, but to me they and the 24kt pieces I have come across have most of the time looked like fake gold, kind of an other the top look. KWIM? But, now I understand why the design never really mattered just the gold content.

My mother had always said that one of the reasons that my grandfather and her family were able to make it through War II was because they had always invested in diamonds which they ended up using to barter for their lives.

So on some level I knew what you had stated, but I was never able to put it together until now. So, I thank you for that and I am definitely going to keep this in mind when I make future jewelry purchases. I always bought what I liked but tried to stay away from the trendy pieces because I thought classics would hold their value better. Now, I see that that does not matter only the weight and purity of the gold.

So, Thank you for that. BTW, not to give you a reason to buy the Cartier bracelet, but it is solid gold. Sorry, NewStyle.

So the Cartier bracelet is solid gold eh? I don't know if I should or at the thought of spending so much money on it lol.

You're wlcm about the thread. I love this forum because you're always getting new insight. It's a great place full of smart women who have style

I know what you mean about the 22 and 24kt gold looking fake. It's like it's soo gold that it can't possibly be real lol. I have to tell you though that's definitely a cultural thing. In the culture I come from people gauge at your social status by how yellow your gold is. Needless to say women who have good gold have no problem showing it off. To them there's no such thing as over the top when it comes to gold. Also the reason why the design doesn't matter is because they can always go to the gold market, present a hand-drawn or copy of a piece of cheap jewelry they like the design of and have their gold melted and redisgned as they like. Since labour is so cheap in these countries it doesn't cost them much either.

BagsRmyLife I too am surprised at the price of gold these days! I now wish I had listened to the women in my family when told me to stop buying "junk" (they're far to practical to understand "but I looooove it" reasoning) and buy gold. Ah well, you learn as you grow right? Lesson learned... well almost I still want a cartier bracelet lol.

 

[Vintage Leather]

^ In the US that is generally true. But again, black jade makes the point that the rest of the world doesn't necessarily function that way. Gold is and always has been highly valued. The ancient Egyptians valued gold; the Mayans valued gold. Even when countries fall into chaos and war, gold is the currency that can be depended on. Never in human history has the entire globe fallen into cataclysm - societies have fallen and countries have crumbled, but never has the entire globe fallen into pure survival mode. Until it does, gold will continue to be the most dependably valuable currency, regardless of country. And even when/if the entire world DOES crumble, I would still bet that those who "have" (have the basics of survival and the things they need) would be swayed by gold.

Labels, designers, names, those things are completely subjective and dependent on outside factors. Gold has ALWAYS been valued since humans first discovered it. It has been the most dependably valuable substance for over five thousand years, and it is literally inconceivable that there would be a time when it meant nothing. But especially in today's world, gold is the most valuable thing a person can own in many places, and it is the one currency they can depend on when a country slides into chaos. In the end, for many people, if they are going to spend money on something, it had better hold its value. Jewelry does not. Pure gold does (and jewelry just happens to be how it is usually sold).

Anyone remember New York in the 90s - Isabel Canovas was commanding more than twice gold weight for her brass costume jewelry. Now, you can pick the same pieces up in consignment shops and antique stores for $50-200...

The thing is, the value of everything - from real estate to currency to diamonds and/or gold to food - is subjective. Do people need them? Do they want them? And, what kind of competition is out there for resources?

If we asked the Lakota people of the Black Hills, they would gladly have handed over all the shiny metal out of their sacred spaces in exchange for the sacred spaces themselves. They didn't value the gold - they dreaded it.

I wouldn't put all my money in gold - but I also don't keep it in currency, or in real estate or...
I grew up with stories of WWII, and I still think of that scene in the beginning of Casablanca where a diamond tennis bracelet was barely enough to buy passage to freedom.

lanasyogamama is the cartier bracelet solid gold? I was under the impression it was only coated with gold... am I wrong? Dear God! tell me I'm wrong so I can finally justify it to myself to get one!

The LOVE bracelet was plated in the 70s. All of the pieces since then have been solid gold or platinum.

The other thing, no matter where you go, gold is gold. It worked when there was no such thing as paper cash and investments and it still works now.

Amen.