Gold and jewelry offer unique growth opportunities for the investor looking to branch out into new and exciting investment asset classes. Gold and all that surround it can represent fantastic growth in your portfolio’s value if you leverage it correctly.
Gold bullion, jewelry or timepieces, and other related assets offer a unique double-threat when it comes to value addition. Physical gold can be used as collateral for other purchases. Indeed, one of the most important lessons that an investor can take on board is the understanding of the cyclical nature of the marketplace itself.
Stocks, real estate, and gold bullion holdings all fluctuate in price throughout the days, months, and years. You can never rely on an asset to continuously produce price growth—there will always be periods of depressed earnings, inflation of costs, and other drains on the productivity of an asset. This is where portfolio diversification plays a significant role in the health of an investor’s holdings. Perhaps more importantly, this is where gold and other assets can make their biggest impact.
With these three suggestions you can begin trading in these fascinating and long term growth commodities with confidence.
1. Trade in funds with the help of the stock market.
Stock market trading is a favorite among investors for good reason. The NYSE (New York Stock Exchange) offers long term stability that’s second to none. Over more than a one hundred year run the stock market has continued to perform at exponentially growing rates of return.
Leveraging the strength of the market can help unlock huge growth potential in your own investments. Rather than targeting ounces of gold or sterling silver directly, you can buy into gold mining companies, jewelry or luxury watch retailers, and other commercial enterprises that deal in these commodities. One great source of these long term returns is in Alamos Gold. Alamos is an industry leader in the gold mining space. Alamos Gold Inc. (AGI) also offers excellent dividend returns to its investors on a quarterly basis.
This all means that investing in the gold arena can be done without leaving the relative safety of the stock market itself. Gold miners like Alamos make gold investments are more affordable option for many investors who aren’t quite ready to make the leap into bullion and jewelry collection. These alternative asset classes can be expensive, and storage is a unique challenge that must be confronted before the holdings arrive in your possession. With gold miners like Alamos, investing in some of North America and Northern Ontario’s most productive mines (the Young-Davidson mine, Mulatos Mine, and Island Gold Mine) is as easy as a trade order.
2. Gold and other commodity holdings can be vaulted by the broker for greater security.
Once you’re ready to begin investing in top luxury watch brands and other luxury assets, you might want to consider vaulted purchases. Many brokers, timepiece dealers included, will offer vaulting services for a small percentage or monthly fee. This is a great way to begin diversifying your portfolio with new commodities like an Omega, Tag Heuer, Rolex, or Audemars Piguet luxury watch.
Luxury brand watches, precious metals bullion, and necklaces can all be vaulted by select dealers for greater security and longevity of your assets. Rather than having to secure your holdings with a safety deposit box or within your home, you can sleep easy knowing that these assets are being held in a high security location with easy access if you wish to sell after a new price surge.
3. Bring your assets home for the greatest control over your holdings.
Taking control over your holdings is perhaps the best way to lock in the price movements of these additional commodity assets. Many investors choose to start a collection while maintaining their bullion and jewelry at home in order to mitigate these vault fees.
With purchases like a Rolex timepiece or bespoke Kendra Scott Jewelry pieces you can build a sizeable base of assets within a home safe or other vault solution. Maintaining your pieces at home is a great way to make the most of their beauty as well. With customized gemstone earrings, bracelets, or necklaces, you can wear these items to special events in order to enjoy them while you maintain them in your collection.
Then, when the time is right, you can quickly and easily sell them on for a great profit before taking the cash and “assigning” to another commodity purchase—either more white gold bracelets or Cartier luxury watches, or a buy order elsewhere.
No matter how you make your first strides into the world of jewelry and commodity investing, there are a number of great options to help you grow as an investor that doesn’t simply rely on stock holdings for great profit generating holdings. Diversify your portfolio with these ideas and you’ll enjoy long term asset appreciation and the ability to enjoy your holdings at the same time.