The second and most important problem they face is the issue of self-control. I see artists go back again and again to the same jewelers that have no problem extending them a short term credit. I guess jewelers are the new dealers. A jeweler called one day complaining about the $200,000 a client owed him, and then finished the conversation by saying “tell him I have his $50,000 chain ready for pick up”. Now if that’s not some enabler for you, I don’t know what is. Ask any business manager and they’ll tell you that it is a constant battle to keep clients out of those stores. Unfortunately, the jewelers and their lending practices make it hard to succeed. You know you have a real problem when you’re worth a couple of millions and your jewelry portfolio represents half of your net worth (true story). Not stocks, bonds or real estate, but a collection of chains, people! The main reason we fight for restrain is that people end up with an unbalanced level of jewelry in their portfolio. Having too much jewelry takes away from money that could be invested in income producing investments like real estate or stocks. True, diamonds do not lose value, but collecting them leaves money on the table.
As I stated earlier, investing in jewelry is not a bad move if done right. Real wealthy individuals do so by buying pieces that are clearly authenticated, having them appraised before the purchase and focusing on the quality of the stones. However, most hip hop celebrities are not ready for all that and do not shop at Cartier or Boucheron. I am not a big fan of jewelry myself, but my advice to current and future buyers would be:
· One, to pay more attention to the products they’re buying. For the money being spent, they need to be more careful.
· Secondly, they need to make sure they don’t just buy jewelry and nothing else. I have yet to see a pendant pay dividends.
· Finally, they need to invest in some classic pieces if they can’t stay out of the stores. The ones that do it right do like Jay-Z or Sean “Puffy” Combs and focus on limited edition timepieces. They are expensive but their exclusivity make them a sure bet for future appreciation, unlike a typical chain or pendant. Even better, they do look just as good! If you’re not into watches, buy your legal spouse (emphasis on legal) some pieces from major jewelry houses to even-out the quality of your portfolio. Take my advice: they resell way better in times of crisis.
As I stated earlier, investing in jewelry is not a bad move if done right. Real wealthy individuals do so by buying pieces that are clearly authenticated, having them appraised before the purchase and focusing on the quality of the stones. However, most hip hop celebrities are not ready for all that and do not shop at Cartier or Boucheron. I am not a big fan of jewelry myself, but my advice to current and future buyers would be:
· One, to pay more attention to the products they’re buying. For the money being spent, they need to be more careful.
· Secondly, they need to make sure they don’t just buy jewelry and nothing else. I have yet to see a pendant pay dividends.
· Finally, they need to invest in some classic pieces if they can’t stay out of the stores. The ones that do it right do like Jay-Z or Sean “Puffy” Combs and focus on limited edition timepieces. They are expensive but their exclusivity make them a sure bet for future appreciation, unlike a typical chain or pendant. Even better, they do look just as good! If you’re not into watches, buy your legal spouse (emphasis on legal) some pieces from major jewelry houses to even-out the quality of your portfolio. Take my advice: they resell way better in times of crisis.
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