Why Investing in Jewellery is not considered Good Investment?

Investing in Jewellery is generally not considered a good Investment for several reasons:

1. Lack of Liquidity: Jewellery is not easily converted into cash when needed. Selling jewellery often involves finding a buyer, negotiating a price, and potentially paying fees to a jeweler or an auction house. It may take a considerable amount of time to sell jewellery and realize its value.

2. High Markups and Depreciation: When you buy jewellery, you often pay a significant markup that covers manufacturing costs, brand value, and the retailer's profit. However, when you sell the jewellery, you may only receive a fraction of the original purchase price, as the resale value is typically lower due to the markup and the fact that it is a second-hand item. Additionally, jewellery can depreciate in value over time, especially if it goes out of style or if the market for certain types of jewellery weakens.

3. Maintenance and Insurance Costs: Owning jewellery involves additional expenses such as insurance and maintenance. Insurance premiums for valuable jewellery can be high, and the cost of maintaining and repairing jewellery can eat into potential returns.

4. Subjective Value and Changing Tastes: The value of jewellery is often subjective and influenced by personal preferences and fashion trends. What one person considers valuable or fashionable may not be the same for others. Fashion trends change over time, and what might be popular now may not hold the same appeal in the future.

5. Inflation and Opportunity Cost: While jewellery may retain some value, it may not appreciate at a rate that outpaces inflation or provides significant returns compared to other investment options. Investing in other assets like stocks, bonds, real estate, or even precious metals like gold often offer better returns and the potential for long-term growth.

It's important to note that there can be exceptions, such as rare or unique pieces of jewellery with historical significance or collectible value. However, for the average investor, jewellery is generally not considered a reliable or effective investment vehicle.