How to protect one’s wealth has been a conundrum for many investors. To maintain ones wealth for future generations one must overcome the forces of inflation, technological change and darker forces such as depressions and wars. History has shown the stock market and to a lesser extent property as able safe guards for the first two problems investors face.
However depressions and wars create more problems and more uncertainty. Which countries are the safest, the US (after all the US currency is backed by the 101st airborne) or the UK? Will investors be able to repatriate money something assumed in capitalist economies? Even the British found out the hard way during World War 2 that normality cannot be assumed in times of distress.
As the war continued the Bank of England ran short of the dollars it needed to purchase war materials and goods from US corporations and governments. To meet this hour of need the Chancellor of the Exchequer decreed that all British citizens who owed securities in the US to report them to the government.
These securities were then sold and citizens received pounds from the proceeds of the sales. For investors it was the patriotic thing to do. However English investors would certainly have been very nervous about the war in the early 1940’s and not being able to have that cash in the US would have been very nerve wracking for those without further back up plans.
To preserve one’s wealth one would say gold stashed away in Switzerland or other neutral countries. This would definitely help but can the average investor afford to do this and if they can how can they access it in their time of need.
The best answer for investors to protect themselves against the unthinkable is surprisingly jewelry. It is not practical to bury gold bars in the ground or keep it overseas, when in your time of need you cannot access it. Carrying around large gold bars does not seem to be a great idea security wise in a time of uncertainty. However precious metal jewelry is valuable and can be easily transported and hidden. Even when times are tough women have a need for beautiful trinkets. In times of wars soldiers will exchange food and other necessities for jewelry for their girlfriends.
In short jewelry is the best diversification one can have, it keeps its purchasing power as a precious metal yet it is also accessible, highly transportable and can be hidden quite easily. The perfect ‘insurance’ to help feed and protect loved ones if the unthinkable occurs. As what is the point of wealth if you cannot use it and access it when you really need it. Funnily enough, buying jewelry for a loved one can be the best investment you ever make!
Gold and Silver Jewelry in India
Indian farmers don’t trust banks and always buy their wife’s silver or gold jewelry especially bangles. A very smart move by peasant farmers! We have all seen many images of Indian ladies with heaps of bangles on their arms. We know that this is not just for decoration but it is family’s bank, so if floods or disasters strike the family can survive by trading in these bangles’. Of the 4,000 tonnes of silver imported into India each year over 50% is used to make jewelry,that’s over 2,600 tonnes of jewelry and bangles. Gold has import tax but still Indians buy over 1,000 tonnes gold each year but so much is smuggled that the exact figure is a wild guess.
Farmers in India now insist on silver more than gold jewelry due to price increase and prefer 99.9% pure silver jewelry and to be hallmarked, which although common in the west is only a new standard in India. Millions of India farmers have stored their wealth in jewelry for centuries and this demand is expected to continue and gold refiners now prefer Switzerland or Australia refineries as both have high grade silver or gold. Silver and gold coins are also kept as safety measure also and in the past holes were drilled and made into necklace but now they do not drill the coin as it does devalue an uncirculated coin.
Keeping the money at home was deemed one of the safer options given the low interest rates found in Japan, (sounds like now the rest of the world). A 2008 report by Japan’s central bank estimated that more of a third of their 10,000 yen notes approx $ 130 did not circulate due to money being kept in safes and mattresses. This amounted to nearly 30 trillion yen or US$390 bn that is kept at home.
This was brought to light during the terrible tsunami that hit Japan in early 2011. Millions of dollars were found floating in safes amid the terrible aftermath of the tsunami. Basically 90% of the money found in the safes was returned to their rightful owners, mainly due to the honesty of the Japanese.
Safes are an important method of keeping money but the problem is do we think our neighbours will be as trustworthy? In most cases we would like to think they would be. But in the time of a disaster like this, the cash is not readily available when yo need it. It took months for the rightful owners to be found.
The best alternative instead of stashing under the mattress, I believe is jewelry. If you wear it, it is there with you at all times and most importantly you have it when you really need it. Japanese wear platinum jewellery more than any other country and is easily tradeable. In WW2 the population had donated all their gold for the war effort but not platinum so that is why platinum is now the most important precious metal for Japanese.
The most important thing is having access to your hard earned savings when you need it and jewellery is one of the only options that allows it.
Its the obvious choice and the higher the gold purity the better insurance,18k gold jewelry is world recognized with stamped hallmark 750 Gold Pendants, Gold earrings, Gold brooches are the ideal “gift insurance” for your lady and men and ladies can wear Gold rings, gold bracelets, Gold chains and all Gold trinkets.
Gold nugget pendants Many people collect gold nuggets as pendants as some think if gold is ever confiscated by governments that it will not include nugget Jewelery, even in WW11 the Japanese had to surrender their gold for the war effort but not jewelry as gold nuggets.
Understanding the importance of Gold Hallmarks and how to cost Gold is so important. When buying gold you may Purchase 24 kt, 18 kt, 14 kt or 10 kt Gold in the U.S.A., Other countries also allow 9 & 7 kt Gold to be sold. The Purest of gold is 24 kt. when you add other metal alloys such as copper, silver or palladium the hardness of the gold is increased. So the 24kt gold will be softest and then 10kt the strongest due to other metal added to the gold.
Gold Stamp meanings:
24K is pure gold
18k gold is 75 % gold and stamped hallmark 18k or 750
14k is 58.3% gold and stamped hallmark 14k or 585
10k gold is 41.60% gold and stamped hallmark 10k or 417
9k gold is 37.5% gold and stamped hallmark 9K or 375
Hallmark stamped k or kt is same.
Diamond jewelry over one carat F1, IF, VS grade diamonds and with certificate from independent reputable company and not shop style certificate.
How to Understand the 4 Cs of Diamonds
Clarity Diamond clarity is determined by the amount of flaws or blemishes in the Diamonds,GIA rating as follows purest CLARITY in order FI, IF, VVS,VS,
Cut of the diamond is important as professional cut diamonds bring out the best of the diamond from emerald, round, oval, princess, pear, marquise, heart radiant
Colour diamonds do come in many colours and shades, natural colored diamonds are very expensive, pinks, cognac, champagne so white diamonds are the popular colour of choice
Top colour for diamond is no colour D or near colorless H or faint yellow P, and light yellow Z.
Carat weight a carat is divided into 100 point so 80 points is .80 carat diamond, Try to buy largest diamond with highest clarity that your budget will afford.
Do not consider diamond jewelry with lots small 1-2 pointer diamonds
but as larger diamond possible for your budget with minimum flaws.
Gemstone jewelry of high quality grade precious gemstones in jewelry from ruby jewelry, sapphireEmerald jewelry, Opal jewelry
Ruby Jewelry make sure ruby is a natural ruby over one carat ,as most rubies now are treated by fissure filled or glass filled treatments as natural rubies are rare and expensive and star Trapiche rubies are scarce and not allowed to be imported from Myanmar now, formally Burma.
sapphire has been popular since ancient times and famous sapphires have been owned by rulers and celebrities. Blue sapphires is the traditional colour but party coloured sapphires of large size over one carat and unheated is preferable set in gold rings and pendants.
Emerald Jewelry Columbian emeralds have best reputation above Brazil or Afghanistan emeralds, large natural emerald set in gold rings or pendants. Emerald can be soaked in oil but no other treatments are desired.
Opal jewelry black opal with red fire is the best recognised valuable opal for setting in gold rings or pendants. Black opals have no treatments and harlequin or mackerel pattern are rarest black opal pattern
Today we don’t just have war scenarios to appreciate jewelry. Record numbers of personal bankruptcies today also make jewelry an attractive investment. Personal jewelry is not added to bankruptcies estate in many states to value up to $1150.00, check your state or country laws regarding bankruptcy.
In Australia a prominent business man went bankrupt with debts of 5 million dollars and he had given his wife jewelry over the last 20 years over millions of dollars and these were not seized by administrators. But if gifts of jewelry were made 12 months before going bankrupt, the administrator could ask for them back. So to summarise buy valuable jewelry at wholesale prices over your many years most especially make sure they’re quality jewelry.
Was this article helpful?3 people found this article helpful