Trading commodities, funds, and jewelry is something that many investors do on a regular basis in the United States and all around the world. Purchasing gold or silver necklaces, earrings, and other collector’s items in the fine jewelry category can form a significant capital gain in your portfolio if the diversification and positioning is correct.
High quality necklaces offer a unique asset class that most traditional investors simply overlook. While most traders remain in the shallow water offered by the stock market, high net worth individuals are building considerable wealth with alternatives to these more commonplace asset classes. Jewelry (earrings, luxury watches, and gemstone pendants, for instance) is more than just accessories—it offers a strong long term growth factor similar to other alternative commodity assets.
Whether you’re looking to branch out into luxury timepieces, ounces of gold bullion, or other commodities, these three tips will help you make the most of your approach to these new and exciting investment opportunities.
1. Rely on data rather than your impulse.
Information is your greatest asset when it comes to making smart investment decisions. Without a commitment to deep research and long term learning it will be next to impossible to continue making intelligent moves in the market indefinitely. Just like a gold miner who knows where to mine for ounces of gold before heading into a mine, you need to do research constantly in order to stay apprised of market movements.
Intelligent investors rely on their instincts, but those can only be honed through a long trending history of trial and error and quite a bit of background reading, learning, and growing. Investors like Warren Buffett swear by a huge volume of personal research. For Buffett, and others like him, every day is an opportunity to get a little bit better and to bring in a little more information that can make for better investment decisions over the long run.
By building a reservoir of knowledge, you can leverage your understanding of the market and the interconnectivity across asset classes and industrial sectors for the greatest potential gains. If you are looking at a list of health funds, for instance, reading into the Covid-19 pandemic, cross-sectional economic data and jobs reports, and keeping up with the pharmaceutical manufacturing segment of the industry can help you to make great decisions about index funds and individual company shares in the healthcare space.
The pandemic has upended our way of conducting business in the short term, yet these changes will produce long lasting ripples that reimagine the way in which small businesses and large enterprises in the United States and all around the world conduct their marketing, sales, and every other segment of routine business. Staying ahead of the market with research and keeping a constant ear to the ground will serve you well as you embark on a journey toward greater wealth generation through the acquisition of these commodity assets.
2. Maintain discipline in asset diversity.
Asset diversity is something that all investors must keep close at hand. Rebalancing tactics help investors to maintain an equitable balance of funds, commodities, and stock holdings throughout their lifetime, and it’s something that can’t be spoken highly enough about.
For instance, luxury watch collectors must remain on the lookout for the appropriate time to sell one or more of their timepieces in order to purchase new commodities or assets in a different sector for greater stability and balance. Searching for “sell your timepiece on WatchBox” can get you started when you need to liquidate assets with a secure and profitable platform that connects buyers and sellers together. The WatchBox is a luxury watch marketplace that offers the greatest volume of excellent quality timepieces from multiple luxury watch brands, such as Rolex and Cartier. Selling with this platform is easy and can get you on the hunt for a new asset in no time.
Asset diversity and rebalancing are crucial steps to making the most of you purchasing power. As a result of the market volatility and price fluctuation that is baked into every commodity asset, there will be highs and lows in the price of each of your holdings. This means that selling assets at peak times in order to buy others that are either performing well or boosting your holdings in a commodity that is seeing a resurgence after a price retraction can help launch you to new heights in your investing career.
3. Buy into value assets that will continue growing over time.
Assets like Alamos Gold (traded on the NYSE as AGI) offer investors the ability to lock in fantastic dividend yields while also enjoying the surging value of gold and the gold industry. Alamos is a preeminent source for gold extraction in North America. With active mines in Northern Ontario and Mexico, and exploration projects in the Republic of Turkey and the United States, Alamos promises a value asset today with great things to come in the future.
Alamos operates a sustainable mining outfit that shies away from harsh chemicals like cyanide for the extraction of ounces of gold from each mine site. Instead, Alamos has committed to slightly more costly, yet far environmentally friendlier extraction processes that are making waves in the industry.
Value assets like Alamos offer investors the ability to buy into long running growth commodities that also pay out sizeable dividends to shareholders. These double threat investments are great for building wealth over the long run while also infusing cash into your portfolio for continued stock, commodity, and collectibles purchases that will continue generating growth and value.
Asset classes that provide this dual benefit are an investor’s best friend: This is perhaps why so many investors choose to add real estate holdings to their portfolios. Real estate offers monthly dividend payouts in the form of rental income that can be boosted years later when a sale of the home is made, likely for a profit as well. Real estate is a flexible commodity in this way and gives investors a collateral asset that can be leveraged for more buying opportunities as well.
No matter the industry you have your eye on, make sure you take these tips on board for the greatest momentum in your portfolio and trading strategy. Building wealth is a long term project, so make sure you are committed to your financial future.