How to invest in jewellery – a collector’s guide to investment

By Andrea – Lucia Iavorenciuc

With more and more people investing in their future, especially in stocks and crypto, there is yet another opportunity for investment that people have grabbed: jewellery. Precious metals such as gold or silver (commonly used in jewellery) have always been a good investment opportunity, but investors are now going for the jewels themselves.

As opposed to crypto or stocks, these investments will not stay in the bank. In fact, many people prefer to invest in jewellery simply because they can wear the pieces throughout their life. They buy items that they love, and even as they are wearing them, those pieces will continue increasing in value.

With that in mind, investing in jewellery asks for a rigorous analysis. Unlike gold or silver which are fairly clear-cut, jewellery is a bit different. You must make sure that what you buy has enough potential, and that you also buy first class. And similar to stocks and crypto, you will have to do thorough research first.

RARITY BREEDS WORTHWHILE INVESTMENTS

The rarer a piece of jewellery is, the more expensive it is likely going to be. Just look at pink diamonds, and the prices they fetch at auctions most of the time. Pink diamonds are rare in comparison to regular diamonds, and that rarity makes them more and more expensive as time passes.

Aside from being rare, Russell Fogarty from the Kazanjian & Fogarty estate jewellery company also brought a definition for a worthwhile piece of jewellery. For jewels to fetch a good price in the future, they need to be of high quality, beautiful, in great condition, vintage – and most importantly, signed by the manufacturer. Without the authenticity certificate, the value of the jewellery can drop, due to the investor’s fear of buying a replica.

From that list, vintage is likely one of the most important. If a piece is a vintage, then it means that the supply for it is likely over, yet its demand still has not stopped. For this reason, more and more people have been investing in jewellery made from the 1920s onward. Anything earlier than that would be considered “antique.”

As the companies changed and the ownership shifted, more and more pieces of jewellery began increasing in value. For instance, the so-famous Tiffany was once owned by Avon, a cosmetics company. During that time, the focus was not necessarily on jewellery design. However, they did create a few pieces, and their rarity caused them to become a worthwhile investment.

If you are looking to invest in contemporary jewellery, it’s important to keep an eye for rarity. Many jewellery designers will produce many potentially valuable pieces in high quantities, but as they won’t be one of a kind or part of a limited series, they won’t fetch such high prices in the future.

STONES TO INVEST IN

We see people invest in gold for jewellery, but most of the potential is brought by gemstones. Diamonds, not surprisingly, reign supreme – especially rare batches of diamonds that led to the creation of unique jewellery. After that, the “Big Three” will follow – emeralds, rubies, and sapphires.

It is quite rare to find the perfect gemstone, which is why more and more jewelers have discovered various ways to treat the stone and improve its color. As a result of this process, more of the stone can be used, and more pieces can be found on the market. The rarity element is taken away through the treatment process.

This is why the gemstones that have not been treated are the most expensive ones – mainly because they are one of a kind and very little treatment was needed to bring them into their current state.

Rubies and amethyst stones are also coveted by many investors, and their value keeps increasing over time. For instance, in 2003, a single Belperron amethyst cuff was auctioned for $28,680. Last year, in 2021, that same cuff had a value of $87,500. Kashmir sapphire has also more than doubled its value since 2012, and it is more than likely that its value will only grow with time.

When investing in gemstone jewellery, it’s important to go for items that have a certificate of authenticity. Every dealer should be able to provide a recent certificate and assess its origin. More and more sellers are looking at letters from more than one lab. The more appendix letters it has, the more it will attest to their rarity.

THE MATTER OF DESIGN

We have numerous historic jewellery houses that were coveted by both jewellery enthusiasts and investors. Belperron, Verdura, David Webb – all of these fetch a very high price these days. However, the names that catch the most attention are usually Cartier, Bulgari, and Van Cleef & Arpels.

These jewellery designers are not necessarily popular due to the stones they use (although their collection is very generous), but mainly because of their design. And this is what many investors are looking for nowadays: a beautiful piece with excellent craftsmanship and a distinctive design. It expresses that exact kind of rarity that we were talking about recently, the collection pieces being one-of-a-kind.

Each brand had its own peak era and its pieces that somehow transcended time. For instance, Bulgari’s Monete collection from its La Dolce Vita period in 1960 is still in very high demand. The ancient coins set in yellow gold were rare then – and are just as rare now. Because of that, pieces from that collection bought in the early 2000s have more than likely doubled in price.

These pieces of jewellery have not always been popular – and just like stocks and cryptos, they had their ups and downs. A few years back, the Monete collection saw a slump, and no one thought they were “cool” anymore. However, recently, they began seeing a revival – and those who held on to their investment are reaping the benefits now.

The Cartier Tutti Frutti collection, featuring leaves and berries from ruby, emerald, and sapphire has also seen great value. In 2011, a bracelet from that collection was sold for $842,500 – and in 2020, that same bracelet sold for $1.3 million. The rarity of the piece made it valuable, which is why the investors are searching for this kind of jewellery.

SEEKING POTENTIAL

When investors are looking to put their money into jewellery, vintage items are not the only way to go. Nowadays, many designers are creating pieces that are fetching a high price, attracting the eye of the collectors. Brands such as JAR, Taffin, or Hemmerle are most popular among collectors, mainly due to their rarity and high craftsmanship.

For example, a JAR bracelet bought 6 years ago would be at least six times more expensive now than when it was purchased. This is because Joel Arthur Rosenthal’s work is quite limited, creating only about 70 imaginative pieces of jewellery per year. Their quality and attention to detail make them coveted – and are the factors that will likely increase their value in the future.

FINAL THOUGHTS

When it comes to investing in jewellery, you don’t necessarily need to focus on a specific time. Instead, focus on craftsmanship, rarity, and beauty. One-of-a-kind pieces will certainly bring nice profits in the future. ■