Investing in Jewelry in 2024 (Is It Worth It, Better Alternatives)
If you’re looking for tips on how to start investing in jewelry, you’ve come to the right place.
Here’s good news - over the last 10 years, jewelry investment returns have possibly exceeded those of the US equities, New York real estate, and gold. According to an Art Market Research report, vintage jewelry prices have gone up 80% in the last decade.
What does this mean for you?
Jewelry investment could be worth it!
Let’s explore the 5 types of jewelry pieces worth investment, how to start investing in jewelry, the 5 jewelry stocks to add to your portfolio, and if it’s really worth investing in jewelry.
We’ll also check out an excellent alternative asset (fine wine) that offers lucrative returns.
Further reading
- Want to diversify your investment portfolio? Check out these 15 Best Alternative Investments.
- If you’re considering investing in a profitable asset like fine wine, check out this Fine Wine Investment Guide.
5 Extraordinary Types of Jewelry Worth Investing in
Here are five types of investment grade jewellery to add to your portfolio:
1. Diamonds
Diamonds are some of the best assets that can beat the effects of inflation and other economic crises.
For example, since 1959, the price of vivid and fancy-colored diamonds has steadily risen by about 10-12% yearly (despite economic downturns.)
However, you need to know which ones are worth the investment.
An investment-worthy and certified diamond is determined by the 4 C’s:
- Carat: The weight of the diamond
- Cut: The diamond’s shape (classic shapes hold better value than trendy cuts)
- Clarity: How clean the diamond is of blemishes and inclusions
- Colour: How colorful or colorless the stone is
Let’s now explore the different types of diamonds worth adding to your investment portfolio.
- Colored Fancy Diamonds: If you’re a diamond investor, you’ve got to get your hands on colored diamonds. These rare diamonds are graded from “Faint” to “Fancy Deep” using the GIA's color-grading scale. “Fancy Vivid” and “ Fancy Intense” diamonds usually command high prices and can be excellent investments.
- Colorless Diamonds: Diamonds in the standard color range are colorless to light yellow. They’re graded using the industry standard scale of D to Z. Colorless diamonds fall in the D-F range. These jewels decrease in value as the hue intensifies.
- Loose Diamonds: Loose diamonds are quite versatile. This means you can use them to create any unique jewelry piece - be it diamond stud earrings, a simple diamond ring, or an exquisite engagement ring. Wholesale-certified loose diamonds seldomly lose their value. You can get these diamonds from about $300 up to $800,000 per carat (the price depends on the diamond shape.)
- Type IIA Diamonds: Type IIa diamonds account for about 2% of the world’s diamonds. These rare jewels contain little to no nitrogen - making them the purest diamond types. They’re usually more than 10 carats in size, and this makes them 2-3% more expensive than other precious stones. On average, a Type IIa diamond costs about $150,000 per carat.
If you’d like a few recommendations, here are two stunning diamond pieces to invest in:
- Bvlgari White Gold, Fancy Vivid Yellowish Orange Diamond, and Diamond Ring ($135,000)
- 18k Small Gold diamond Meryl Huggies ($4,000)
2. Pearls
Top-quality pearls are usually worth over $100 up to even millions of dollars and are sought after by jewelry investors all over the globe.
But which pearls should you invest in?
Natural saltwater pearls can be an exceptional choice. These jewelry pieces can fetch anywhere from $500-$2,000 per piece.
Also, natural saltwater pearls usually perform well at auctions. For example, a large drop natural pearl pendant owned by the French Queen Marie Antoinette sold for a whopping $32 million at a Sotheby’s 2018 auction.
South Sea Pearls are some of the most sought-after pearls in the world with prices ranging from $1,000 to $130,000 or more.
Why do natural saltwater pearls have a high investment value?
These jewelry pieces are rare and just about impossible to find. Most natural saltwater pearls on the market are over a century old and feature in fairly rare antique jewelry.
Let’s put it this way - only 1 in every 10,000 oysters yields a natural pearl that can be used for jewelry.
Two Stunning Pieces to Invest in:
- Brilliant Collection White South Sea 10.0-11.0 mm Pearl and Diamond Dangle Earrings ($2,125)
- Van Cleef & Arpels - Gold, Mother of Pearl and Diamond Clématite Brooch ($23,125)
3. Gold
Gold is a precious metal used to make jewelry. Let’s explore why it’s a good investment along with the fine jewellery pieces you can invest in.
Pure gold is an investment-worthy precious metal that commands high prices.
In the early 2000s, gold price was merely about $320 per ounce. However, the value of physical gold climbed to over $2,000 in 2020.
But what makes physical gold an attractive investment opportunity?
Gold bullion is inflation-proof.
The World Gold Council highlights that for every 1% increase in inflation rates, the demand for pure gold increases by around 2.6%.
Also, this precious metal usually performs better than other commodities.
Want to know the best part about gold jewelry?
Your gold bracelet doesn’t always have to remain a bracelet. It can be melted down and transformed into another gold jewellery piece, a gold bar, or a gold coin.
If you want the best gold jewelry pieces, pick options with 14-carat gold or higher.
4. Platinum
According to Australian bank ANZ, Platinum is expected to grow from around $1,100 an ounce now to $1,300 by end-2022 and nearly $1,375 by September 2023.
If you’re keen to explore platinum investment, you should consider checking out platinum jewelry from the Art Deco era. Art Deco jewelry usually features bold geometric patterns (squares, straight lines, triangles, and arcs) that are combined to create complex and exquisite designs.
Two stunning gold jewellery and platinum pieces to invest in:
- Cartier - Juste Un Clou Bracelet, Small Model, 18K Yellow gold ($3,400)
- Cartier - Platinum and Diamond Art Deco Link Bracelet ($106,250)
5. Gemstones
The finest gemstones (such as emeralds, sapphires, and rubies) have a good track record of increasing in value over time. They also serve as a good hedge against stock market downturns.
For example, since 1995, fine gemstones have increased in value by 5-8% annually (despite economic uncertainties.)
Let’s take a look at the best investment grade gemstones.
Rubies
High-quality rubies are scarce and usually command high prices (up to $100,000 a carat.)
Within the ruby family, Unheated Burmese Rubies make an excellent investment. The finest ones have a vivid red color that collectors dub “pigeon’s blood.”
Emeralds
Emeralds are rarer than most diamonds and tend to cost more. This gemstone is best identified by its deep green shade, but can also be found in various other shades.
An emerald's color is classified based on three features - saturation (intensity), hue (color), and tone (purity). The most valuable emeralds are intense, dark in shade, and pure.
A high-quality emerald, like a Colombian emerald with no visible flaws, is known for appreciating in value over time. You can find Colombian emeralds for as low as $30 up to $10,000.
Sapphires
Sapphires are impressive gemstones that range in color from many shades of blue to yellow and orange. However, the finest ones are usually the blue sapphires from the Kashmir region in India.
Kashmir sapphires (especially ones with a prominent velvety shade) can make a great addition to your portfolio. These gemstones usually cost around $5,000+ per carat.
Also, these gemstones show a stable price appreciation. Interestingly, the prices of Kashmir Sapphires are 20 times what they were in the 80s.
Two stunning gemstones to invest in:
- 3.30 Ct. Emerald from Colombia ($12,062)
- Van Cleef & Arpels - Gold, Sapphire, and Diamond Toi et Moi Ring ($16,775)
But how do you start adding fine jewellery pieces to your portfolio?
How to Start Investing in Jewelry: 7 Useful Tips
Here are some useful tips to consider when starting your jewelry investment journey:
- Educate Yourself and Choose What You Love
- Forge Meaningful Connections in the Industry
- Be Patient While Determining Your Jewelry’s Investment Potential
- Buy From Reputed Sellers
- Look For Limited Edition Pieces and Well-Known Designers
- Carefully Consider Where to Sell Your Jewelry Pieces
- Secure and Insure Your Investment
1. Educate Yourself and Choose What You Love
Do thorough research on jewelry investment. You can take online courses, attend previews at auction houses, or visit museum exhibitions.
And if you’re buying jewelry for investment purposes, ensure that it’s something you love. This will also help you decide whether to keep or sell your jewelry piece at a later stage.
2. Forge Meaningful Connections in the Industry
Looking for the finest investment jewelry pieces can be tricky at times. That’s why it’s important to forge meaningful connections in the industry to make the right investment decisions.
3. Be Patient While Determining Your Jewelry’s Investment Potential
Collecting and selling investment jewelry requires patience. To avoid making impulse purchases, take your time and ensure you’re investing in a profitable jewelry piece.
For example, most fashion jewelry pieces usually don’t hold much value. That’s because fashion jewelry is often made with brass, aluminum, copper, and other metals that discolor and bend easily.
4. Buy From Reputed Sellers
Knowing where and whom to buy from is crucial. Here are the best places to get your fine jewelry pieces:
- Online diamond wholesalers: Online businesses have little to no overhead costs. This means you’re bound to save some cash when buying online. However, you should buy only from reputed online stores.
- Jewelry auctions: Auctions houses are the best places to find authentic jewellery pieces. The best auction houses to look out for include Sotheby’s and Christie’s.
- Pawnshops: These can also be an excellent place to find unique pieces at great prices. However, always do some research first and ensure to buy from reliable stores.
5. Look For Limited Edition Pieces and Well-Known Designers
Limited edition jewelry pieces can be a great investment choice.
But where can you find these rare pieces?
Check out famed designer houses like David Webb, Harry Winston, Bulgari, and Van Cleef & Arpels!
Want to increase your return on investment value even more?
Look for a signed or vintage piece with the jeweler's stamp. This jewelry piece offers about 25%-30% more returns than unsigned pieces.
Some limited edition pieces that command high prices include antique Fabergé jewelry and vintage rings. Art Deco pieces are also an excellent investment because they often outperform other vintage jewelry.
6. Carefully Consider Where to Sell Your Jewelry Pieces
If you’re looking to resell your jewelry, you want to ensure you’re selling it at the best market value. Consider selling through reputable wholesalers like Worthy or consignment stores.
7. Secure and Insure Your Investment
Investment jewelry made from any precious stone or metal is usually quite expensive. You should always safely store it in a bank safety deposit box or a secure safe.
To add an extra layer of security, consider insuring your fine jewelry investment.
Most insurance companies offer a policy against theft and damage. Do some research first to find out everything about the insurance plan.
Now, the next best way to invest in the jewelry market is to place your bets on stocks.
Let’s check out some jewelry stocks worth investing in.
5 Jewelry Stocks to Add to Your Portfolio
These are the 5 jewelry stocks that should make it to your investment portfolio:
- Pandora (OTC: PANDY)
- Signet Jewelers (NYSE: SIG)
- Tiffany-and-Co (NYSE: TIF)
- Movado Group (NYSE: MOV)
- Charles-and-Colvard (NASDAQ: CTHR)
1. Pandora (OTC: PANDY)
source:google.com
Pandora is a Denmark-based company that offers gorgeous, customizable jewelry pieces. This stock boasts an impressive dividend yield of 4.27% and a market cap of 4.72B USD.
2. Signet Jewelers (NYSE: SIG)
source:google.com
Signet Jewelers is the world's largest retailer of diamond jewelry. The stock has a P/E ratio of 8.28, a dividend yield of 1.38%, and a market cap of 2.77B USD.
3. Tiffany-and-Co (NYSE: TIF)
Tiffany and Co. produces the finest diamond and sterling silver jewelry. This stock has a dividend yield of 1.76%, a P/E ratio of 64.44, and a market cap of 16.48B USD.
4. Movado Group (NYSE: MOV)
source:google.com
The Movado Group is one of the world’s best luxury watchmakers. It has a market cap of 655.86M USD, a P/E ratio of 6.72, and a dividend yield of 4.61%.
5. Charles-and-Colvard (NASDAQ: CTHR)
Charles and Colvard provide exquisite moissanite and lab-grown diamond jewelry. This stock has a market cap of 30.69M USD and a P/E ratio of 11.67.
Is Jewelry a Good Investment?
The finest jewelry pieces can be worth investing in.
Why?
Designer pieces and vintage jewels are known for appreciating in value over time. Also, the global luxury jewelry market is growing rapidly.
The global luxury jewelry market was worth $21.39 billion in 2020 and is expected to increase significantly to $292 billion by 2025.
Investing in options like gold bullion often proves to be an excellent decision. In the past year, gold investors enjoyed a return of about 11%.
Also, the finest jewelry pieces perform well at auctions.
For example, a 19-carat Pink Legacy diamond was sold to Harry Winston (an American jeweler) for a whopping $43.86 million at a 2018 Christie’s auction.
But then, investing in jewelry comes with a couple of disadvantages.
For example, investing in jewelry usually requires lots of capital. Also, you have to do a lot of research before putting your money on fine jewelry pieces.
Besides, jewelry can be easy to misplace.Even though the portability of jewels is an advantage, the reality is that your jewelry may be stolen or lost.
Meanwhile, insuring your jewelry pieces can be quite expensive.
Looking for an alternative asset that performs consistently? Fine wine can be an excellent choice!
Fine Wine: An Exceptional Alternative Asset Worth Investing In
Fine wine is a profitable asset that can help you diversify your portfolio. That’s because it isn’t affected by fluctuating interest rates and the economy’s performance.
Interestingly, fine wine usually outperforms stocks, mutual funds, commodities, and other assets.
In the first half of 2022, fine wine returned more than 11%. Its two-year returns were 36.8%, while the five-year returns reached 50.3%.But how do you go about investing in fine wine bottles?
Check out the Vinovest website! It’s an incredible AI-powered platform that helps you buy, store, and sell the world’s finest wines.
Diversify Your Portfolio By Investing in Jewelry and Fine Wine
Investing in jewelry can offer excellent returns and a sizeable profit. However, this investment might not always be worth it.
If you’re serious about building a profitable portfolio, you need to check out fine wine! This asset usually outperforms jewelry pieces, stocks, mutual funds, and other assets.
Visit the Vinovest website today and start investing in the world’s finest wine bottles!
