It takes careful thought to choose a piece of jewellery for a loved one. A gift that will be treasured is something extra special. Does jewellery appreciate? Or will it become a trinket of sentimental value only?
In the right circumstances, some jewellery does appreciate over time. But jewellers advise that you choose a piece that will be adored for its style, and that will suit the personality of the wearer, rather than for its potential future value.
What influences the value of jewellery?
Perfect style
Some styles are timeless, and classic settings are treasured through all fashion trends.
Intrinsic value
This is the worth of the materials that have been used. Gold, platinum and gems should all be very well cared for. Demi-fine jewellery may not appreciate intrinsically for this reason.
An appraiser will study the cut, clarity and carat of gems and diamonds.
Precious metals, diamonds, and other gems fluctuate in price according to the market and supply.
Workmanship
A well-crafted piece of jewellery takes great skill and many hours and days to make.
Parisian jewellers Van Cleef & Arpels are famous for creating the ‘mystery setting’. The gems are held in place with no visible prongs. This takes at least 300 hours to complete.
In what circumstances does jewellery appreciate?
A combination of elements come together to raise the value of luxury jewellery.
Time
The number of years between the purchase and sale of good jewellery can add monetary worth. This is due to inflation, with other factors playing a part. Jewellery appreciates over decades, hence the tradition for gifting heirloom jewellery.
Rarity
When there are only a few identical items available to buy, the value increases. This applies to rare gems, such as coloured diamonds. Blue diamonds are reportedly coveted at the moment.
A flawless gemstone is rare. Scarcity is also a very important factor when trading antique jewellery.
Jewellery appreciates fame
Jewellery worn by celebrities, or associated with a significant event attracts higher prices.
The 1987 auction of Wallis Simpson’s jewellery collection raised a record amount. This shows that the event of Edward VIII’s abdication increased the significance and value of the pieces for sale.
Does jewellery appreciate enough as an investment?
The resale price of jewellery is difficult to predict. For this reason, jewellery is not a popular form of investment. If a piece of jewellery retains or increases its value, then that is a bonus, but it cannot be guaranteed.
The worth of fine jewellery is tangible. Its value is in itself. While wealth is intangible numbers on a screen, luxury jewellery remains a physical representation of financial status.
Jewellery brands that hold value
Tiffany, Graff, Cartier, Van Cleef and Arpels, Mikimoto – any name that has a long history of supplying luxury jewels to the rich and famous will hold its value.
Jewellery enthusiasts are drawn to distinctive modern classics, with intrinsic value, like Bulgari B.zero1, or Serpenti. Increases in the value of precious metals today may raise the intrinsic value of a gold ring purchased a few years ago. However, this doesn’t mean that a gold ring can be sold second hand for more than the original purchase price. It can take not only many years, but the right moment or circumstances for jewellery to appreciate.
Many designers sell directly to the public online, changing the way that we buy and sell jewellery. The price does not include the mark up of a jewellery store. This may affect how a piece of jewellery appreciates in the future.
Does costume jewellery appreciate?
In recent years, vintage and costume jewellery has become collectable. Knowing which designers and brands to collect, unless it’s something obvious like Chanel, is rather niche expertise.
Sellers buy vintage jewellery cheaply and then market it on the internet. Selling vintage jewellery online might be profitable if you know your bracelets from your bangles.
Jewellery appraisal
If you have items of jewellery that might be very valuable, then it’s possible to get an appraisal. This could be for insurance purposes, inheritance reasons, or with a view to selling.