Investing In Jewelry: What You Need To Know

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As they say, jewelry is a gift that keeps on giving. Since time immemorial, men and women have always enjoyed adorning themselves with beautiful pieces of precious metals and gems. Now, jewelry has become more than just a decorative item or status symbol; throughout the decades, it has evolved into objects that play different roles in people’s lives. Among many other things, it can serve as a remembrance, a symbol of commitment, a fashion statement, or an expression of love. These are but some of the reasons for investing in jewelry.

On the other hand, some individuals treat jewelry as a moneymaker, such as in the case of business-minded people who see it as an investment vehicle. Investing in jewelry has become one of the most common forms of investments, and it’s easy to see why. It can be a lucrative money-making strategy just as long as you’re equipped with these two things: knowledge of the right jewelry to invest in and know-how of the workings of jewelry investing.

In this article, we’ll delve into the science of jewelry investment. We’ll walk you through some of the processes and information that you need to make your jewelry investment a successful one. We’ve also included some of the best value brands around.

Investing in jewelry can make you money

How Do I Start Investing in Jewelry?

The most critical aspect of investing in jewelry is, of course, the jewelry itself. Since the goal is to cash in on the value of your jewelry in the long run, you must first consider these important things.

Raw material

One of the most significant considerations in determining the value of jewelry is the material from which it’s made. In terms of diamonds, indeed, stones over one carat will most probably keep their value better than stones with a total weight of less than one. The four Cs – cut, clarity, color, carat–are all crucial factors. Regarding the cut of the stone, it’s better to stick with standard shapes like the brilliant round cut; avoid the newer, trendy cuts as much as you can. When choosing diamonds, remember that clarity and color can be regarded as more significant than carat or size. In other words, it’s wiser to pick a slightly smaller stone than a larger yet cloudy one. You should keep these things in mind if you’re planning to collect diamonds as an investment.

All precious metals are valuable, but gold is most likely to hold their value better than any other metal. When shopping for gold, you should choose pieces made with 14 karat gold or higher.

Workmanship

You don’t want jewelry with broken prongs, inconsistent sizing, and distorted shapes, as these flaws will affect their value. That’s why assessing the quality of construction and the precious metals used in the making of your jewelry is very important. Check your piece for blemishes or any other disfigurements. Look for hallmarks–these indicate the metal content of a piece, its country of origin, designer, or manufacturer. You can locate these markings on the clasp of a necklace, the post of an earring, or the inside of a ring or bracelet. Take note that all fine jewelry should have some type of hallmark. If your jewelry has a hallmark, then it’s usually a good evidence of it’s of high quality.

Brand

How do you know if your jewelry will retain its value several years from now? You will probably gain profit from your jewelry if you purchased it from a reputable brand. Classic pieces from manufacturers such as Tiffany, Rolex, Van Cleef & Arpels, Patek Philippe, David Yurman, and Cartier are almost always good picks. Credible jewelers are guaranteed to provide you with only the best quality jewelry there is, so remember to buy only from trusted brands.

What Jewelry Holds Its Value?

Once you’ve decided to invest in jewelry, what might be the most crucial point of consideration is its ability to keep its value over the years. Many people make the mistake of investing in trendy jewelry, thinking it will have high resale value because of its steep cost. Unfortunately, that isn’t true. Once the trend has passed, investors are left with sparkly embellishments that don’t fetch much attention on the resale market. In short, classic pieces are almost always the best choice.

As mentioned above, jewelry investors must acquire their jewelry only from reputable brands. This is one sure way of telling if your piece will still bring in the bucks several years down the road. Below, we’ve listed the four best value retaining jewelry designers worthy of your investment money.

Tiffany & Co.

This luxury goods specialist, founded in 1837, is famous for its exquisite jewelry. Particularly popular is its diamond creations, most especially engagement rings. An investment piece from this brand that will surely retain its value is the Tiffany Setting Ring. Although it was introduced in 1886, this beloved classic has maintained its status as one of the most famous rings to date. Instead of setting the stone onto a bezel, the designers opted to fashion it in such a way that the diamond’s exposure and shine will be maximized, hence, the introduction of the minimalist six-prong setting.

The Tiffany Setting Ring is one of the most famous rings in the world

Cartier

Louis-Francois Cartier founded Societe Cartier in 1847. This brand has a long history of catering to celebrities and royalty, cementing its status as one of the world’s most respected jewelers. England’s King Edward VII once referred to Cartier as “the jeweler of kings and the king of jewelers.” The high-quality materials and the distinctive craftsmanship of Cartier’s creations are loved all over the world, with several of them having decades-old history. The maker’s signature piece, the Love bracelet, has stood the test of time. Released in the 1970s, this bracelet collection screams of passion and romance while giving its wearer a touch of elegance. Cartier jewelry can even be more valuable in the future than its current selling price; you can never go wrong investing in it.

Cartier’s Love Bracelet is equivalent to luxury

David Yurman

Founded in 1980 by David and Sybil Yurman, this contemporary jewelry manufacturer’s artisanal jewelry designs with unique features are coveted by enthusiasts worldwide. Among David Yurman’s signature pieces is the Renaissance line, which started with the cable bracelet launched in 1982. This bracelet features a twisted central helix with gemstones of every shape, size, and color embellishing its end caps. This brand offers timeless pieces that make excellent additions to any jewelry investment, as both of its old pieces and new items fetch top prices consistently.

David Yurman’s Cable Bracelet is a coveted collectible

Van Cleef & Arpels

Established in 1906, this Parisian brand is famous for its intricate designs and gem setting style called ‘Serti Mysterieux’ or ‘Mystery Setting.’ This technique conceals the prongs that hold the gemstones in place. Each stone is faceted onto gold rails less than one-fifth of a millimeter thick. Each piece requiring this technique takes 300 hours to finish, which is why only a few are released annually. But what is probably the most distinct creation of Van Cleef & Arpels is its Alhambra Necklace. The Alhambra motif, created in 1968, is typically inlaid with mother-of-pearl. Although it was introduced decades ago, this collection looks surprisingly modern and remains as this maker’s best selling set.

Van Cleef & Arpels’ Alhambra motif is their best selling set

Investing in Gold Jewelry Pros and Cons

The demand for gold comes primarily from jewelry, which accounts for around 50% of gold demand, according to The Motley Fool. The remaining 40% comes from direct physical investment in gold: coins, bars, medals, and bullion. Bullion is a gold bar or coin that is officially recognized as being at least 99.5% pure. It contains markers showing the amount of gold it contains and the gold’s purity.

Gold is often regarded as a safe-haven investment because it can preserve its value even in times of economic turmoil. Investors in physical gold include private individuals, central banks, governments, and exchange-traded funds that acquire gold on behalf of others. Below, we’ve listed the pros and cons of investing in gold jewelry.

The demand for gold through Q1’17 to Q4’19 | Source: Gold Hub

Pros

Wearable investment

While waiting to sell it, you get to enjoy the aesthetic benefits provided by gold jewelry. Unlike stacks of coins and bars that are left to sit in a vault somewhere, gold jewelry is a wearable investment that you can use.

Guaranteed return on investment

During a sale, gold jewelry is always weighed. Buyers then offer you an amount based on what the scale reflects, the going rate per ounce, and the actual amount of gold in your jewelry. No matter how light or heavy your jewelry is, you will get money back from it.

Easier transportation

Unlike gold bars and coins, the transportation of gold jewelry is much more manageable because it doesn’t weigh as much and can fit in the tiniest of containers.

Cons

Paying for premiums and workmanship

A part of what makes gold jewelry expensive is the effort invested in making it. When you purchase gold jewelry, you are also paying for the time that designers and goldsmiths spent on crafting it to perfection. Unfortunately, when buyers assess your gold, the value of craftsmanship is not considered in the sale. Even if you have an extraordinarily detailed or one-of-a-kind masterpiece, the buyer will make an offer solely based on the weight of the gold.

Purity issues

Most gold jewelry is not pure. As gold is highly malleable, it is often mixed with a bit of copper, silver, and other metals to strengthen it.

You must first consider these investing in jewelry pros and cons before purchasing a piece of gold jewelry. The best practice is to have it appraised by a professional, so you’ll always know how much you can earn from it.

Is Vintage Jewelry Worth Buying?

Many people have the assumption that when it comes to jewelry, antique, and vintage means the same thing. However, these two terms should not be used interchangeably, according to an article by Farringdons Jewelry. For jewelry to be called “antique,” it has to be at least a hundred years old. To be considered as “vintage,” it has to be at least 20 years old.

Here are the top three reasons why you should invest in vintage jewelry.

Excellent value

Antique, vintage, and pre-owned jewelry are VAT-exempt, so they are 20% cheaper than an equivalent piece of brand new jewelry. These items will also cost less because there are no manufacturing costs attached to them. You pay a “new” price for new jewelry, but with vintage pieces, they have already gone from ‘new’ to ‘old’ before you buy them, so they retain their purchase value.

Better quality

Modern jewelry, which is often cast, pales in comparison to vintage jewelry, which is almost always handmade or hand-finished. The latter is always imitated but rarely duplicated down to the smallest detail. Even in modern high-end pieces, it’s rare to find the level of quality and wvorkmanship that we commonly observe in old jewelry.

Good investment

Vintage jewelry costs less than modern jewelry, but its resale value is higher. That’s because each piece is unique and can’t be replicated using new production methods.

The resale price of vintage jewelry is almost always higher than its purchase price

Is Jewelry a Bad Investment?

Investing in jewelry only becomes a wrong decision when you jump into it without first equipping yourself with the knowledge to do it properly. Venturing into jewelry investment requires you to consult experts, research on the subject, and gain as much information about the trade as possible. Read about periods, metals, and research the reputable brands where you should get your jewelry from. Only buy jewelry that you genuinely like.

Remember that investing in jewelry can be enjoyed between the buying and selling phase, so make sure that you only purchase pieces that truly appeal to your personal style. After all, in the unfortunate event that you don’t sell them, you will be stuck with them forever, so you might as well choose jewelry that you’d want to wear. This is unless you’re planning to eventually sell your jewelry online or through other means.

If you aren’t planning on investing your sparkling gems and jewels, then you might want to learn why you should wear jewelry

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