Investing in jewelry may seem daunting and overwhelming, but it doesn’t need to be! Jewelry investing is becoming increasingly popular among various types of investors because of the opportunities for diversification that come with owning a valuable asset.
From precious metals such as gold, silver, and platinum to gems like rubies and diamonds, individual items or even collections can form an important part of any portfolio. This comprehensive guide will explain why you should consider investing in jewelry and what items would make good investments. No matter if you’re starting out or already have a strong understanding of the concept behind it, this beginner’s guide has all the tips and tricks so that anyone can confidently invest in jewelry.
Why Invest In Jewelry
Jewelry is always a wonderful wearable investment, plain and simple. Gold and diamonds have been in great demand for millennia, regardless of other trends, issues, or economic concerns. This high demand maintains the value and profitability of your jewelry should you need to sell it. In contrast to currency, the value of which fluctuates with the economy, jewelry with a larger gold content is always valued!
Consequently, precious metals can be a valuable diversification asset for any investment portfolio. For example, they can be utilized to provide protection against the volatility that other forms of assets occasionally experience. For example, the correlation between equities and capital is typically quite low. While the price of such assets can fluctuate based on short-term economic developments, historically, the price of precious metals has been more stable.
Pro tip: Just be sure to contact a professional jewelry appraiser to know that you’re on the right track!
Which Jewelry Pieces Have High Value?
Your brand preference should be a top priority when investing in fine jewelry and watches.
Piaget, Cartier, and Bulgari are the most sought-after names for women’s watches on the market, although Maisons such as Boucheron Jaeger-LeCoultre and Chopard also generate robust sales.
When purchasing vintage jewelry or timepieces, it is also beneficial to be aware of hallmarks and signatures. Pieces signed by the most prominent houses typically command significantly greater prices than comparable unregistered works.
What to Purchase
As investments, diamonds reign supreme, followed by the “Big Three”: emeralds, rubies, and sapphires. The highest price for a Zambian emerald in December was $1.04 million.
In order to expand the number of gemstones accessible on the market, the industry has developed techniques to enhance the color of subpar stones. Untreated specimens are consequently the most coveted and expensive, as no treatments such as heat or oil have been used to enhance their color or look. However, even the most prestigious jewelry houses use specimens that have been gently treated.
When purchasing ruby jewelry, it is essential to recognize that not all rubies are created equal. Clarity, color intensity/saturation, size (larger rubies tend to be more expensive), shape (cut into a classic Round Brilliant Cut or Fancy Cut), carat weight, and origin (Burma Rubies are among the most expensive and sought-after) are some of the factors to consider when selecting a ruby.
For instance, the most prized ruby is a “pigeon’s blood” Burmese ruby, which is pure red without any purple or brown. In November of last year, Christie’s sold a pair of pigeon blood Burmese ruby earrings for about $3.2 million.
No-Oil Colombian Emeralds
Natural untreated emeralds are one of the year’s greatest investments. Their prices are rising and are anticipated to continue to rise.
Before purchasing an emerald, however, there are a few factors that smaller investors should be aware of. Larger stones are more valuable and sell better than smaller ones.
In addition to size, color is the most important component in determining the price. Additionally, color and saturation variations can add thousands to the price per carat. The desired hue is a shade of Colombian green with high saturation and a hint of a dark tone.
Oil treatment is an additional essential element. For an emerald of gem quality to be a true investment, it must not have been subjected to any oil treatments that artificially enhance its appearance. In fact, you will need a document stating that the emerald has not been treated with oil and that it originates from Colombia.
Rare Vintage Rings
Initially, you can go right with period pieces. In addition to other forms of vintage jewelry, rare vintage rings are in high demand. They also belong to the most precious category, and their values are rising.
“This is Money,” one of the leading financial websites in the United Kingdom, cites Art Market Research research to illustrate the market’s growth. According to the data, the prices of vintage jewelry have increased by 80% over the past decade.
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Tips on Investing in Jewelry
Always conduct due diligence.
Many consumers are under the false impression that investing in gold jewelry carries no risk. The unfortunate reality is that many individuals overpay for products that will quickly lose their worth or that would yield little to no profit when resold. If you are drawn to a piece of jewelry and are inclined to purchase it, conduct some research before making a purchase.
Even if you are employing the services of an expert, you must still perform your due diligence. For instance, suppose you see a silver necklace in a jewelry store. You can research its history; its provenance. International agreements prohibit the use of “blood minerals” derived from conflict zones or child labor. Additionally, you can inquire about the craftsperson.
Determine if these companies have a history of dishonesty and research their financial standing. It is uncommon for jewelers to cut corners and incur financial difficulties. Additionally, investigate their privacy policies and deals. This knowledge is freely accessible.
Gold is a safe investment.
Gold jewelry is yet another excellent investment option. Unlike other trendier precious metals or stones, gold’s demand has not changed significantly; its value has continuously climbed over time. One ounce of gold was worth $79 in 1975. In the early 2000s, the price of gold was approximately $320 per ounce. In 2020, however, the price of actual gold surpassed $2,000 per ounce.
When searching for gold pieces suitable for investment, look for at least 18 karats. And timing is essential when it comes time to sell your gold jewelry. Follow the market pricing closely to ensure you receive the best value.
Choose classic brands and models that retain value.
When assembling a collection, research should take priority. Investigate brands and models that have a track record of retaining value. Brands such as Cartier, Van Cleef & Arpels, Rolex, and Patek Philippe maintain or even improve in value over time. Additionally, you should consider the best types that maintain their value, such as Cartier Love bracelets, VCA Alhambra jewels, Rolex Submariners, and Patek Philippe Calatrava.
In terms of women’s timepieces, diamond-set pieces tend to be the most valuable, but the most expensive timepieces are made of uncommon materials and include uncommon designs. Piaget yellow-gold cuffs and sautoirs with hardstone dials fetch some of the highest prices for women’s wristwatches at our auctions.
Collect popular period jewels.
Certain eras of jewelry design continue to be more popular than others, with art deco items from the 1920s and 1930s being among the most coveted on the market. Recent demand has also been high for jewelry from the 1940s and 1960s.
They are easy to wear and resonate with modern collectors since they are vivacious, vibrant, and crafted from yellow gold. Indeed, art deco style guidelines continue to inspire a variety of stylish and modern fine jewelers who are crafting heirlooms with eternal elegance. There are specific icons that will always survive the test of time, such as the Cartier ‘Tank,’ which regularly fetches auction records.
Know where to sell your finds.
“Worthy” is a wonderful platform for selling beautiful jewels at fair market value since it provides transparency, security, and ease of use. However, not all jewelry is fit for selling on this site; certain pieces are better suited for Etsy and other sites where unique, but less-valuable goods are popular.
Local settings like antique stores and jewelry consignment shops may also be suitable for reselling your finds. You may quickly choose the finest site to sell your jewelry for the highest possible return with minimal research.
Why should you invest in jewelry?
Due to the little risk involved, investing in jewelry is an attractive alternative for many individuals. Because it retains its value over time, jewelry is often regarded as a secure investment, allowing investors to enjoy the benefits of liquidity and value appreciation with relative ease.
Whether you’re searching for something “timeless” like gold or silver jewelry or something more showy and current like fashion jewelry, investing in pieces that are likely to increase in value over time can be financially and emotionally rewarding.
Does jewelry lose value?
This question’s response is dependent on the sort of jewelry in question. Depending on a variety of conditions, the value of some jewelry can increase or decrease over time; nonetheless, it is crucial to note that the value of gold jewelry often increases with age.
Gold has endured the test of time as one of the most coveted precious metals due to its unique qualities and exquisite appearance. For instance, gold does not corrode or tarnish, so it retains a quality and beauty that can be passed down from generation to generation. Therefore, even though gold prices fluctuate daily based on the demand and supply dynamics of the global market, collecting antique gold pieces can be a wise investment decision as they tend to appreciate over time due to their scarcity of supply, timeless design, and exquisite craftsmanship.
Is 14K gold jewelry a good investment?
Gold is a common investment choice for many people. Due to its strength and timeless beauty, purchasing 14K or 18K gold jewelry might be a great investment. In addition, gold has inherent value as a financial instrument that protects investors against inflation and other economic risks.
Consult with W. Villarica About Jewelry Investment
Willyn Villarica is your trusted partner for jewelry appraisal services, catering to clients around the globe. Our expertise and commitment to excellence ensure accurate and reliable assessments of your precious gemstones. It’s important to note that while we offer our services worldwide, clients are responsible for covering all travel expenses. Don’t miss out on the opportunity to have your diamonds expertly graded by Willyn Villarica.
If you want an appraisal or have other questions about our services, email me at email@example.com. You can also reach out to us through our Facebook page (Willyn Villarica Jewelry) or Instagram (@willynvillarica_jewelry).