The whole world has been reeling under the covid-19 threat. With the pandemic and the consequent lockdown having a debilitating effect on the economy, people are now holding onto their earnings/savings and using utmost discretion while spending it. Many would say that this is a right approach. But is this enough? Not really.
In these uncertain times, it’s important to smooth away any financial risks and deal with those ventures that have a history of impressive returns. It is imperative to shift the focus from just frugal spending to making your assets work or buying assets that have stood the test of time.
As Indians, jewellery has always played a pivotal role in our lives. Passed on to generations as heirlooms or bought as sentimental souvenirs, or as an effective investment, jewellery in all its forms – gold and diamond has always had a special place in our lives. The precious yellow metal and the shimmering stone have been in high demand across the centuries irrespective of the socio-economic factors at play. It’s the versatility of gold and diamond that make them a lucrative option. Since gold can be melted and recreated, its value is higher. Diamonds, whether in the loose form or when set in jewellery too don’t lag behind in terms of value. Not much has changed and this holds true in the current pandemic situation too.
Besides being a thing of beauty, what is it that makes jewellery investment during the current scenario a lucrative option? Investing in jewellery either gold or diamond, makes more sense due to the value of the asset, ease of selling it or getting it pawned, lower risk attached, durability and offering affordable luxury. Jewellery always comes in good stead in a crisis situation when other investments fail. Unlike other financial assets like equities or stocks, jewellery investments are solid and tangible and this works in its favour. Besides these, investing in gold or diamond jewellery also helps you to have a balanced portfolio.
Prior to the pandemic, the youth were not quite keen on investing on something like jewellery. However, with priorities changing, many millennials who would have voted for going on say a trip abroad earlier now see that buying fine gold or diamond jewellery is a safer bet in the long run. The pandemic has also changed the way people gift.
Yet another shift that has taken place due to covid-19 is that many are now opting for safe and contactless buying. Online purchases are being tried by the even the most staunch supporters of physical stores. With many gold and diamond jewellery houses having an online presence buying jewellery is quite safe and simple.
To put it in a nutshell, it doesn’t hurt to invest in gold and diamond jewellery during these trying times.