Jewelry Is A Great Investment, But How Do You Make Money From It?

| February 8, 2016 | 0 Comments

One of the best ways to make a bit of extra money is to buy jewelry. The right jewelry can go for a lot of money, and that is what you are looking for from your investment. However, it isn’t as easy as buying and selling it for a profit. If it were, everyone would invest and make a fortune. The problem with jewelry is that it is a complex business. Only the people that take the time to understand the industry are the ones that truly know what jewels are worth money and what are worthless.

To increase your knowledge and make money, you need to know the tricks of the trade. Here are a few that should help you make a proper investment.

Buy From A Legitimate Supplier

The first problem that you need to negate is the supplier. As a novice, you have no idea what you are buying and whether it is legitimate. To avoid any issues, you need a legitimate supplier that you can trust. The best way to figure that out is to ask to see their credentials. As a jeweler, they will need certification to show that they are a decent outfit. Plus, you can ask them about their experience in the trade. Finally, you can ask for any references they can provide so that you can judge their previous customer’s satisfaction.

Ask For Help

Still, there is always going to be that thought in the back of your head that your supplier is trying to rip you off. Unless you ask for help from someone you can trust, there is no way to get rid of this feeling. If you are lucky, you may know someone that has experience in the industry that can give you a few pointers. If they are not looking to make money from their help, they don’t have an ulterior motive. And if they don’t have an ulterior motive, they are trustworthy. These are the people that will put you on with the best suppliers and the best jewels.

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Purchase Cheap Jewels

Obviously, you want to buy low and sell high. That is the first rule of investing, and it doesn’t change regardless of the investment. Now that you know what to look for, you can try and find cheap jewels that are worth a lot of money. The first place you should start is an auction. Auctions are notoriously cheap as the price depends on the demand on the day. The demand could be low when you make your bid, and you could make a killing. Or, you may want to head to a pawn shop. You can find a host of cheap jewels at http://www.mypawn.net, and they are trustworthy. One final option is a charity store. These stores are full of little gems that are waiting to be picked up at a low price.

Get Certification

Once you have the jewels, you become the supplier. And just like you did when you were in the market, buyers will want to make sure you are genuine. The only way to do that is to provide all the relevant certification to show that the jewels are real. These papers will prove to the investors that you are not trying to sell them leprechaun gold. If you don’t have them, they could cost you a lot of money when the time comes to sell. A good way to demonstrate that you are honest is to take the jewels to an independent expert. You can sell them for a good profit if they sign off on the goods.

Clean Them

Dirty jewelry is not going to sell as well as clean jewelry. This may come as a surprise as all it needs it a wipe with a cloth. But, the dirt makes buyers think that there is something wrong with them like they are going to rust. Plus, clever investors will use any method they can to lower the price, and complaining about the cleanliness is the oldest trick in the book. It doesn’t take much to keep them in good condition, so don’t neglect them if you want to make a profit. To find out more, go to www.goodhousekeeping.com.

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No Imperfections

Everything may look good on the surface, but you know that is not the case underneath.  Apart from being immoral, it is stupid to sell imperfect jewels as perfect ones. Any buyer that is going to spend a lot of money on jewelry is going to check them thoroughly. Otherwise, they could be buying anything. As soon as they take it for a checkup they will find the imperfections. Not only will this lower the price, but it may affect the entire deal. Would you do business with someone that tried to take you for a ride? You should only buy perfect jewels in the first place. But, don’t sell imperfect ones as the real deal if you do end up with them in your possession.

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Clear Not Cloudy

Cloudy jewels are a nightmare because they ruin the clarity. To make serious money on jewelry, you need to find clear jewels. You could have the perfect jewel in every other aspect, but it wouldn’t matter if it were cloudy. The best thing to do is to stay away from cloudy jewels altogether as it can be hard to sell them on for a profit. Clear ones, on the other hand, are a lot easier to sell as they look the part. To lots of investors, perception is everything.

Quantity Over Quality

If you can’t afford to buy quality gems, there is another way to make money. Instead of going for quality, go for quantity. Think of scrap gold, for example, as penny stocks on the stock exchange. If you sell lots of them, you will make money. As long as you tell people that you are not selling them top quality gold and price it accordingly, you are doing nothing wrong.

After all, most people like to look the part, but they don’t want to pay the retail price.

Category: Personal Finance

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