Investments in the portfolio of a successful retail investor or accredited investor can vary widely. The best among us like to diversify their portfolios with the help of a number of unique asset classes, like gold, real estate, stock market holdings, and even cryptocurrencies.
However, jewelry is something that many investors get into early in their careers and continue to hold and trade for many years. Jewelry is a high-value commodity and enjoys a significant fluctuation in value, making it a great asset for trading if you have an entry point into the market. Fortunately, with the continued expansion of digital trading options, accredited investors and others can now easily make trades in these and other asset classes that would have traditionally been relegated to the portfolios of only higher dollar investors.
Getting into the market for necklaces or rings can seem a little daunting, but with the right approach and an open mind, you can really turn a profit on these commodity pieces.
Target statement pieces with a history.
The best jewelry investments are those that target high-value assets within the investment asset class. Alternative investing of this nature is all about finding the unique selling point that creates value. For jewels, this is often a storied history. Some of the most spectacular pieces on display in museums and private collections around the United States got their start as the gift of a wealthy investor or ownership in the collection of someone famous many years ago. For your collection, you should consider pieces of this nature in order to create collateral leverage for continued buys in the future.
Along with real estate and gold bullion, a worthy collection of diamond jewelry or a few antique pieces with an expensive price tag can be used in place of or addition to a credit score check when borrowers take out a loan for new investment opportunities. This is common for real estate investors looking to make an offer on a new property, but the collateral they use can range from an owned property to another asset class such as like rings, stones, and metals.
With necklaces, rings, and other jewelry investments you can begin to build a unique portfolio of statement pieces that look beautiful when you or a loved one wears them out for an evening on the town or in their storage facility that protects their value when not being worn. An initial necklace is another great piece for a collector to own. These necklaces are created for specific individuals, and a common (or even uncommon) initial necklace can grow in value over time if you take care of it. Many of these types of pieces are made with diamonds, rubies, or other precious stones to go along with a platinum or gold chain and fittings.
Consider a fund that deals in jewelry or other precious assets.
As well as direct investment in precious items, you can invest in funds that manage these types of assets — like those offered by alternative investing platforms like Yieldstreet — to create an additional layer of security for your portfolio. Rather than holding your assets in your home, you can rest easy with the help of a managed Yieldstreet fund. The valuation of the underlying assets grows just as they would if held privately. However you get to lock in the security of a managed trust, the same as an accredited investor might target for creating an alternative investment stream for themselves, or on behalf of a client. This is often the most appealing thing that investors find when asking “Is Yieldstreet legit?”
Yieldstreet and other similar managed funds that deal in alternative investment opportunities are a great way to get started in the necklace and jewelry trade.