Fine jewelry can be a great investment, even though diamonds, emeralds, and sapphires may sell for millions. Since ancient times, jewelry has been a symbol of wealth and social status. Kings and queens had large collections of diamond tiaras and bejeweled amulets.
The history books reveal the extravagant jewelry suits worn in India by Indian maharajahs as a way to show their wealth, and the burial grounds of Egyptian Pharaohs contain a wide variety of jewelry for the afterlife.
What is jewelry investing?
An investment in jewelry is like investing in collectibles such as blue chip art, rather than in a commodity such as Platinum. Investments in fine jewelry don't always follow the stock market.
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Investors should look for other assets such as jewelry, premium Bordeaux wines, and renowned modern artworks in order to preserve their wealth. Experts consider well-made pieces by top designers to be a great store of value, even though they may not go up in price.
Jewelry is not liquid. It can be difficult to sell jewelry investments. You will need to go through the slow process of finding buyers. You will also need to be able to recognize fine jewelry that is worth your investment, such as rare vintage rings, fancy colored diamonds, or natural saltwater pearls.
You can source jewelry from retailers. It is important that you only purchase from a reputable jeweler. To ensure that your jewelry is of high investment quality, you may need a third-party appraiser. If you are looking for a necklace made of gold from a specific designer or period, it is worth networking with professionals in the field.
When investing in jewelry, it is important to think about insurance and storage. You can keep jewelry in a jewelry box, or you can wear it. However, it is best to store it in a safe or bank safety deposit box to protect your investment from theft or loss. Most insurance policies will cover theft or damage.
However, it might be harder to find a policy that will protect your jewelry investment portfolio. Insurance can be costly. Make sure you do your math and decide if the future returns are worth it.
What to Look For When Investing in Jewelry
Do not rush to the nearest Tiffany & Co. if you are looking to purchase quality jewelry pieces. Fine jewelry, like all other investments, requires knowledge and research.
The best way to learn more about the jewelry market is to read books, visit museums, consult industry experts, and attend previews at auction houses. Collectors often focus their attention on specific jewelry designers and periods, such as the art-deco era.
Rarity
A piece that is rare will be more likely to appreciate in value over time. This holds true for vintage jewelry such as rare vintage rings. Over the years jewelry houses have had different owners.
Designs and craftsmanship can vary depending on the year. Let's take Tiffany and Co. It was sold to Avon Cosmetics in 1978. Many customers were unhappy with the quality of the pieces.
The history of the piece is another factor that determines its rarity. Did it belong to a celebrity or were they the first owners? This could impact the resell value. In 2011, Elizabeth Taylor's entire collection of jewelry was sold at Christie's for $115,000,000.
Types of stone
Diamonds are often considered to be a good investment. However, they are not the only precious stone worth investing in. High prices are often paid for sapphires, rubies, and emeralds. You can also find natural saltwater pearls for as low as a few thousand dollars depending on what type of jewelry you are buying.
The most desired pieces are untreated stones, but even top-quality pieces are more likely to contain lightly treated stones. It's rare to find the perfect gemstone so heat or oil is often used to enhance its appearance.
Another factor that influences the value of precious stones is their origin. Because of its velvety color, a Kashmir sapphire is more valuable than one from another region. Burmese rubies can also be worth millions. In 2005, such a ring was $2.2 Million.
Design
When it comes to jewelry investments, year and stone are important. However, the designer of the piece may be equally important. You'll find designs from Bulgari and Cartier at auction houses. These designers are all well-known for their distinctive designs as well as their flawless craftsmanship.
These three designers' jewelry is highly sought-after depending on their time period. Collectors are very interested in Bulgari’s La Dolce Vitapieces, which date back to the 1960s. Cartier's Art Deco pieces, particularly a Cartier bracelet, are perhaps the most distinctive from this period.
The Tutti Frutti is a particular favorite, as it was inspired by Jacques Cartier’s early 1900s trips to India. In 2020, a Tutti Frutti bracelet was sold for $1.3 Million. A similar one was sold for $8422,500 in 2011.
Is jewelry a good way to invest?
Diamonds are often considered to be the best friend of many people. High-quality jewelry from high-end designers tends not to lose its value, but goes up in cost. For example, take the Oppenheimer Blue Diamond. The famous blue diamond was $ 50.6 million at Christie's in 2016.
It was then surpassed by the Pink Star Diamond which sold for $ 71 million at Sotheby's. A blue diamond was sold at Sotheby's in April for $57 Million, while a smaller grey-blue diamond was sold for $ 6.8 million in 2018. Collectors also love other gemstones like Kashmir sapphires.
A large 35.09-karat ring was sold for r $ 7.3 million at Christie's 2020. This is the highest price ever paid for a Kashmir sapphire.
The market is not only for certain collectors; trends in fashion investing and investing change all the time. A Frutti Tutti bracelet may be worth millions, but it might lose its appeal in the future.
Jewelry investing is like any other investment. A good piece of jewelry, unlike stocks, can be kept as a family heirloom even if it loses value over the years.
How to invest in jewelry
You can buy fine jewelry in many ways if you are looking to expand or start your jewelry investment. You can start by looking at reputable jewelry shops like Bulgari, Bulgari, or Cartier.
It's also possible to buy fine jewelry secondhand. However, it should be authenticated by an independent third party. Fortuna, Sotheby's, and Christie's are great places to buy solid gold vintage jewelry.
If you don't have the funds to purchase jewelry or are unwilling to take on the risks of buying fine jewelry, but still want to invest in this industry. You might also be interested in buying stock in publicly traded jewelry companies such as Tiffany and Co. and Signet Jewelers.
While you will be more susceptible to price volatility and market movements, your stocks can still be sold at any time.