Investing In Jewellery: How A Jewellery Loan Can Come In Handy

Personal Finance

Investing In Jewellery: How A Jewellery Loan Can Come In Handy

October 29, 2018

Who doesn’t love to doll themselves up once in a while?

A great way to jazz up your look and upgrade your wardrobe is to accessorise yourself with something evocative and timeless – Jewellery.

Charm bracelets, necklaces, earrings are all simple ways to complete your look.

Buying expensive jewellery, especially gold jewellery, is common in Singapore. Singaporeans love the finer things in life and jewellery is no exception. Many spend hundreds of thousands of dollars on these luxury goods for various reasons. More importantly, jewellery trends tend to outlive fashion trends, making them a worthy investment.

Top Reasons Why Singaporeans Buy Jewellery

1. Status

Many people buy expensive jewellery as a statement piece to show their status in society. This is one of the most common reasons why people buy jewellery. Today and throughout history, people of higher status in society or who have considerable wealth wear expensive jewellery. Oftentimes, these people own more jewellery than other people. People use the jewellery they own to measure their worth.

2. To Secure Their Wealth

Some people buy expensive jewellery to provide wealth security. These valuable pieces of jewellery not only have aesthetic value but are also considered an investment. Royal jewels, for example, provide security for countries that have them.

3. As A Tool For Trading

The precious stones and valuable metals used to make expensive jewellery are widely accepted throughout the world for their high value. Some people therefore invest in jewellery to use it as a tool for trading. Jewellery can be used as a form of currency determined by its value.

4. As Gifts

Jewellery is often purchased as a gift. This may be to mark a special occasion, in recognition of someone’s accomplishment or just as an expression of one’s feelings. Jewellery is a natural choice when people want to show those they care about just how special they are.

5. As Fashion Accents

Jewellery has been used throughout history as fashion accents. It continues to play the same role today. People use jewellery pieces to enhance their outfits, which act as a sort of decorative element. They select the pieces they wear depending on their outfits for the best effect.

6. For Self-Expression

Many people use jewellery to make a statement about what they believe or their personal style. These pieces are often unique and are used to communicate a message.

7. As Religious Symbols

Various religions have various symbols that can be incorporated in jewellery. This jewellery can be purchased to commemorate a religious event such as baptism or communion. Others can be used to symbolize position or status in the religious context. Others can be worn for their religious meaning, e.g. wearing a cross to show your religion or as a reminder to yourself of your values.

8. As A symbol Of Relationships

Jewellery is often purchased as a symbol of relationships. People wear rings, for example, to show that they are married. The rings are a symbol of their commitment to their relationship with their significant other.

9. Family Heirlooms

Some people purchase jewellery with the intent of handing it down to the next generation as an heirloom. These heirlooms are not only a great way to preserve the family’s wealth but also to connect families through their past. It is a great way for future generations to learn about and remember their heritage.

Is Jewellery A Good Investment?

While jewellery is nice to look at, it can also be considered a good investment in many cases. Depending on the type and value of the jewellery, it can be a great asset to have.

1. The Right Jewellery Protects You From Inflation

jewellery can provide you with protection against fluctuations in the market. Gold, for example, has had a steady price for many years. This precious metal which was considered valuable in the past is still very valuable even today, and this will probably still be the case many years from now.

2. Jewellery Can Provide Protection In Case Of A Crisis

jewellery can provide you with security in the event of a crisis. For example, if the Singaporean Dollar were to weaken, the value of your gold pieces would not diminish. You could therefore sell them to obtain a stronger currency such as the US dollar. You’d therefore be able to get good returns for your jewellery despite the poor performance of the country’s economy.

3. Jewellery Is A Great Way To Create Or Preserve Wealth

If you invest in the right jewellery, it can help you create and preserve your wealth. Gold, for example, has shown great performance over the last decade. Many people are investing in gold as opposed to stocks. This is because gold has shown greater stability than stocks which have resulted in great losses every time the economy performs poorly.

How A Jewellery Loan Can Help

It’s a known fact that jewellery doesn’t come cheap. You could easily spend hundreds of thousands of dollars to get your hands on that diamond ring or a specific piece of jewellery that you’ve been eyeing. Doing so will definitely put a dent on your finances. How then can you finance your jewellery?

Many people opt to use their credit cards to pay for the jewellery. However, this might not be a wise option, especially if you’re not likely to have enough cash on hand to pay your full credit card bill. Isn’t it enough to pay the minimum sum? No. Interest rates on credit card loans are very high. The last thing you want is to have to pay a ridiculously high amount in interest and have an ever-increasing debt hanging over your head.

If you’ve already identified the jewellery you will purchase, consider taking a jewellery loan to pay for it instead. These are personal loans that are packaged to meet the needs of those who want to purchase jewellery but can’t afford to pay the whole sum upfront. Jewellery loans will allow you to pay for the pieces over time.

One of the biggest benefits of these loans is that their interest rates are much lower than the credit card loans. The terms of these loans are also quite flexible. You decide how much you can pay in monthly instalments. This ensures that you don’t have to eat into your finances as you pay for the jewellery. However, it is important to pay as much as you can afford. This will reduce the length of time you take to repay the loan and the interest charged, making your loan cheaper in the long run.

Taking a jewellery loan will ensure that your purchase does not adversely affect your finances: Your savings will remain intact. You can access the loan when you need it. The beauty of applying for a jewellery loan with us is that we’ll be able to provide you with the cash you need, fast. Apply for a jewellery loan with us today or alternatively, you can speak to us so that we can better tailor the loan to suit your needs.