In the 2019 jewelry event, people seem interested in knowing if pieces of jewelry are a good investment. Some are curious about how pieces of precious metals such as platinum, gold, and silver, can change the trading industry. There are so many convincing ideas that tell people jewelry is the next big thing. But are they worth the money?
For those who love investing in jewelry, it can be pretty much okay. But that is if you are capable of handling the loss value. There are what people call a numismatic value and melted value. These two fundamentals are what provide the precious metals their worth.
Imagine an artist taking his time carving and creating the design in a piece of precious metal then creating a piece of jewelry. The artistic process which requires effort and time is the numismatic value. It is the effort in the creation process that adds value to the jewelry and not the precious metal itself. That explains why some pieces of jewels are worth more than the others. That is because of the details of the masterpiece and the status of the person creating it.
The melted value becomes different in a considerable way. Because even if a piece of jewelry were once worth a lot, it would only cost a standard amount when it gets melted. There is no way you can mark the price up even on the stock exchange when the decorative feature of the precious metal is gone. Therefore, the melted value takes away the numismatic value and turns a piece of jewelry into an ordinary piece of precious metal.
When you think about it, when buying jewelry, you are losing half of your money. That is because trading jewelry shops and pawnshops only consider the melted value. So regardless of how expensive you bought a piece of ring, you will never get the same price once you let go of it.