Intelligent Investments: Tips for buying Jewelry and Precious Stones
They say that “Diamonds are forever” or something like “Diamonds are a girl’s best friend.” Indeed, gemstones and jewelry will forever become synonymous with wealth, status, and power. These small but valuable items can skyrocket a person’s image from a literal “Rags to Riches” perspective. These treasures have been the reason why conquest and wars between ancient empires happen.
Nowadays, jewelry is a standard for beauty. However, for some, beauty is just part of the reason why people have such precious treasures. Family heirlooms for example, often consist of jewelry handed down from generation to generation. Finding one in an old house can mean an instant turnaround when it comes to the state of living.
For those who understand the value of jewels and precious stones, investments are the intent. The price of gold and precious gems will only go higher as time passes. A rare spider brooch made by a famous jewelry company, Fabergé, was priced $15,000 which later became a staggering $80,000. This pricing only goes to show that the actual value of jewelry and gemstones only become higher as time passes.
Here are some tips to look out for when planning to buy jewelry as an investment:
New isn’t Always a Good Choice
When it comes to jewelry and investment, a lot of people think that buying high-end, brand new, and designer pieces are the ones that fetch the most money in time. They later get disappointed, only to find out that this isn’t always the case. Take for example this situation: A woman buys an earring at a high street retailer for $100. When you sell it back the next day, you’d only get $30 for that earring.
A lot of people fall for this trick and end up buying jewelry that’ll take 30 years to bring in the original cost of buying the piece.
No Assurance for Vintage and Antiques
Good investments lie within an antique and vintage jewelry. Most of these pieces are from a source that has a lot of low asking prices. Most of these pieces are family heirlooms hidden just about anywhere. The spider brooch from Fabergé mentioned above was found in a family attic. However, antiques aren’t usually a guarantee that they’re going to sell big.
Most experts say that Art Deco jewelry made in the late 1920’s are the most valuable. Their values increase even more when Cartier or Arpels sign these pieces. Precious stones like diamonds also grow in value with time, especially if they are more than five karats in size. For example, old pieces of jewelry who sport such diamonds are often removed and replaced with smaller ones. This switch is the reason why it’s so difficult finding old diamond rings and other types of statement jewelry.
Going for the Good Ones
For a person without knowledge, any piece of jewelry is excellent as long as it’s authentic and has a name. Style plays a significant role in determining the value of a piece. For example, Victorian Jewelry is no doubt, authentic and has high value but has a notoriously small market. Most sellers will have a hard time selling Victorian pieces because of their association with grief, mourning, and sentimentality.
Georgian Jewelry which also has a small market is such a rare commodity because of its style and appeal to most buyers. Compared to pieces like the Victorian, Georgian jewelry are more likely to get purchased by collectors and buyers. Another part that appeals to most collectors is the Art Nouveau designs which utilize glass, enamel, and precious gemstones which go with most trends today.
Learning to Wait
As mentioned earlier, the price of these valuable possessions goes up with time. Learn to watch out for trends as to determine when to sell your pieces. An investment doesn’t have to consist of gold entirely. It can be made up of valuable silver pieces, pearls, and rare gems. A diamond crusted ring bought for $1000 today might end up in an auction and sell for $5000 in 3-5 years time.
Takeaway
Investing in jewelry certainly isn’t a bad thing. However, as with investments, there are always risks involved. There are also several factors that a buyer should know if he intends on purchasing pieces for investments. Factors such as knowing the styles of jewelry and the impact that time has on certain jewelry all determine the real value.