Ever wonder if a piece of jewelry that has been passed down your family for generations is secretly a valuable nest egg in disguise? As jewelry experts, we often get asked if jewelry appreciates and tips for spotting valuable jewelry that will one day appreciate. Keep reading to discover if you have a remarkable piece of jewelry collecting dust in your attic that you can turn into serious cash as well as what characteristics to look for when shopping for investment quality jewelry.
Does jewelry hold its value?
Unfortunately, the answer to this question is not cut and dry. Depending on the jewelry, you may be looking at stellar cache of funds or only get only back a mere fraction of what you originally paid.
We all know that luxury jewelry and diamonds are a status symbol, but the truth is that we have this global understanding of its high value because of clever marketing campaigns.
In the late 1800s, diamonds were incredibly rare and expensive. However, once diamond mines were discovered in South Africa, diamond distribution became tightly controlled by the De Beers group. De Beer’s only allowed a certain number of new diamonds to enter the market each year to create the appearance of scarcity and maintain high diamond prices.
While your diamond jewelry may have been sold you to as a rare find, in reality, there are plenty of other pieces of jewelry mass-produced to be just like it. Only truly scare jewelry with outstanding craftsmanship and adornments are going to net you a profit.
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Jewelry resale value: resale mark-ups
Anyone who has resold jewelry can tell you about the major shocked they experienced when they first heard offers. Most of the jewelry sold to you by local jewelers and major brands have massive markups.
Jewelers mark up their jewelry to cover their rent, employee wages, bills, and desire to profit. Generally, these markups can range from 100% to 300%. Unfortunately, you can expect to receive anywhere from 15% to 50% back of what you originally for your jewelry, depending on its brand, quality, and market demand.
When you are selling jewelry, you will either be paid:
- For the jewelry’s intrinsic value such as its metal and gemstone weight.
- For the jewelry’s value as a branded piece, such as a high-quality Tiffany ring (which is typically worth more than the piece’s intrinsic value because of the brand name).
Even diva Mariah Carey is not exempt from steep jewelry store markups. In 2018, the singer sold her gorgeous 35 carat emerald cut diamond engagement ring from ex-fiancé James Packer for a mere $2 million when it was estimated to have originally cost $10 million.
Does jewelry appreciate long term?
The easiest way to have your jewelry increase in value is through long term appreciation. Even if you don’t like the idea of having to decades for your jewelry to net you a profit, this method does work in most cases.
For example, in 1970, Cartier’s iconic Love bracelets sold for just $250. With today’s inflation, that same Love bracelet would cost $1,647. Compare that price to today’s standard-sized Love bracelets where the least expensive bracelets are sold for $6,300.
Philanthropist Alison Minton once bought a limited-edition Alhambra necklace from Van Cleef & Arpels and sold it ten years later for $12,000, double of what she originally paid. This savviness runs in the family as Minton’s grandmother bought an 18K gold bracelet with rubies and sapphires by Tiffany & Co. for $400 in 1964. When valued in 2002, a jeweler estimated the bracelet to be worth $9,000.
Types of jewelry that does appreciate in value
Apart from seriously long-term appreciation, there are certain types of jewelry that are likley to increase in value. Look for jewelry with these characteristics:
High quality materials and craftsmanship
Jewelry that is made with exceptionally high-quality materials will appreciate. For instance, jewelry made with investment-grade diamonds have exceptionally high 4C diamond grades (the diamond’s cut, color, clarity, and carat weight), which are always in demand.
A Van Cleef & Arpels Mystery Set will net its lucky owner a profit because of how labor-intensive they are to make (usually requiring 300 hours) and limited availability. For instance, a Mystery Set ruby bracelet was sold for $140,000 in 2003 and was later sold for $348,500 in 2016.
Scarcity or rarity
A major contributor to the value of jewelry is its scarcity. For instance, Rahul Kadakia, the international head of jewelry at Christie’s, explained that “Every time something from the 1920s, 1950s, and 1970s from Van Cleef, Cartier, Boucheron comes up for auction, they always do significantly better than they did the first time around.” This is because of the small percentage of high-quality vintage jewelry on the market.
Also, jewelry sold with large, high-quality colored diamonds are valuable because how scarce they are in comparison to white diamonds. According to the Natural Color Diamond Association, “prices for natural blue diamonds has been gradually and consistently rising between 12 and 17 percent every year over the past decade.”
Fame
Jewelry that was once owned by someone famous will almost always increase in value.
In 1965 Pope Paul VI donated his diamond papal ring as well as his diamond and emerald encrusted cross to the UN to help the poor. While these pieces originally raised $64,000 for the UN, as of 2017, the Pope’s generous donation is valued at $1.9 million.
Is it okay to buy jewelry as an emotional investment?
Of course. Since not all of us have the money to spend on outstandingly expensive jewelry that will almost certainly net us a profit, consider any future jewelry that you buy as an emotional investment instead. Whether your jewelry cost $500 or $5,000, if you love it then your jewelry can feel priceless to you and you may never want to part with it.
When shopping for your next piece of jewelry, it is always best to shop online because there are fewer overhead costs involved with running an online store compared to its physical counterpart. This means that the online jewelry store’s savings get passed on to you.
At LuxuryBazaar.com, we sell a stunning array of jewelry from all brands, styles, and price points. With our curated selections, constant stream of new pieces, and all-star customer service team, you can easily find the perfect piece of jewelry that you will cherish for years to come.
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