In my family, some pieces of jewelry are passed down from one generation to the next. You might be familiar with a similar heirloom tradition and the sentimental value attached to it.
However, is buying an expensive pendant, hoops, or birthstone ring a good investment because that jewelry appreciates in value?
What Jewelry Appreciates its Value?
Pure gold, silver, diamond, and some rare stones or metal combined with the right mixture of the below factors may appreciate in value taking these following factors into account too:
- Precious metal price market value
- Gemstone market value price
- Brand that sells the jewelry
- Designer that creates the piece
- Scarcity of the ring, necklace, earrings
- Era of the jewelry made
- Brick and mortar vs online jeweler
- Documents of authenticity (e.g. GIA diamond certificate)
Jewelry as an investment is, as you can see, a complex business, where many variables play a role in making jewelry valuable enough to appreciate.
If you don’t understand the luxury jewelry market, it may possess a danger you can minimize or fully avoid by following these tips below for buying, gifting, or selling jewelry profitably.
It´s so easy to purchase a diamond engagement ring only to find out that it´s value decreases because you didn´t know the nitty gritty you are about to learn.
How Much Does Jewelry Increase in Value – Gold
The market for precious metals and gemstones is like any other industry, subject to supply, demand, and degree of speculation.
Average Gold Price(24K) Last 10 Years (Table)
As you can see on the chart above, the gold price, as an example, fluctuates and has appreciated in value over the years with some gold commodity price dips along the way.
The official gold market price on the precious metals exchange is one of the most important determiners for jewelry appreciation or depreciation as pure gold (22-24Karat) is worldwide, not just in the US, popular with fashion accessory buyers and investors.
Diamond and other Gemstone Appreciation
Diamond is one of, if not the most popular gemstone since the 4th century B.C. It is therefore not a surprise that this sparkling gem is highly in demand.
Couples ready to tighten the knot by proposing and slipping that diamond wedding ring over each other is an international tradition for decades, if not generations.
However, other precious gemstones like ruby or sapphire engagement ring sets in gold or sterling silver are popular as well.
Therefore it is good to know how these gemstones influence the appreciation of jewelry as a gift and future investment alike.
Gemstone Prices & Appreciation Table
To fully grasp the market value of gemstones here is a short extract to give you a basic overview of what and how jewelry may appreciate in case they contain a stone.
|Basic Gemstones||Regular Gemstones||Premium Gemstones|
|Andesine (1carat,$33.00)||Citrine (1carat,$30.00)||Diamond (1carat,$2.5K+)|
|Source: Litawear.com, market prices fluctuate|
Diamond is as the table shows, the most sought-after gemstone because of its beauty, strength, and intrinsic value compared to the other stones, especially non-premium like zircon (regular stone) or axinite (basic).
The amazing186 carat Koh-i-Noor white diamond of Persian royals now at the British Museum (thanks to colonial Britain) was discovered in the 11th century is believed to be the most expensive stone ever at over 1 Billion US dollars evaluation (Source).
TIP: Whenever you purchase a jewelry necklace, ring, or bracelet with gemstones make sure it’s a premium stone like sapphire, ruby, or opal if not a diamond in order to have a higher intrinsic and tradable jewelry piece that may appreciate.
Jewelry Brands That Gain in Valuation
Apart from metals and stone jewelry, another aspect is the value of a brand or designer company they come from which sets the price.
TOP 10 Jewelry Brands
- David Yurman
- Tiffany & Co.
- Harry Winston
- Van Cleef & Arpels
Not surprisingly Tiffany, Cartier, or Van Cleef & Arpels are among the most respected jewelry brands globally.
These luxury brands offer exclusive necklaces, bracelets, and spectacular wedding rings with a corresponding price tag.
Jewelry buyers around the earth can trust the quality of craftsmanship or design, as well as the precious metals, used to come up with that unique engagement ring piece of art.
From a jewelry investment perspective, it, therefore, makes sense to purchase your next gold-diamond ring necklace set from one of these internationally recognized fashion brands.
It’s a smart move from an informed consumer as a way to offset the risk of low value due to an excellent, but otherwise probably unknown designer brand.
Some jewelry collectors go even a step further and choose not just a high street jeweler, but a specific designer who created the unique accessory for the fine jewelry house of international recognition.
In the case of Tiffany’s, for example, pieces of jewelry created by none other than Louis Comfort Tiffany go for much higher prices than your average designer.
There is revealingly a brand jewelry market. Therefore, if you plan to trade your precious amulets, stunning studs, or remarkable bands like art collectors exchange their Picasso, then you should definitely consider a famous jewelry fashion brand apart from the other investment considerations mentioned.
Additional Jewelry Price Affecting Factors
Jewelry Scarcity and Value
It’s obvious, a necklace from Cleopatra costs much more than an average Pandora or Swarovski one you can get anywhere between New York, Paris, Tokyo, or Capetown.
A rare stone like the 102 .39-carat Flawless Oval Diamond with a minimum auction value of $30 Million will always appreciate in jewelry value rather than a stone we all can purchase at the next best mall jeweler (Source).
In this regard, if you are looking to buy jewelry as an investment that increases in value or at least doesn’t depreciate quickly or at all, seek those rare stones like a tanzanite of high clarity and beauty.
Tanzanite is a good example because it is a rare gemstone that is slowly exhausting in the minefields of Tanzania (Africa), which translates to probably higher future value appreciation.
In other words, the more difficult it is to mine a stone and polish it to a fine jewelry product, the likely it is that this gemstone is going to increase its evaluation in the market.
This is especially evident within the luxury fashion industry.
Fine Jewelry Era & Price Estimates
In art, there are periods like Surrealism (1916-1950) presented by e.g. Antonio Gaudi of Catalonia in Spain that are considered of higher value than others. This is true in the world of fine jewelry as well.
Masterpieces of jewelry to be purchased of any golden era is for example Art Deco jewelry during the 1920s – 1930s period.
Their aesthetic value, craftsmanship, precision, and clarity of the precious material, respectively gemstone, are by many jewelry insiders considered the best value for money purchases.
The Art Deco jewelry era was typically known for its geometric, straight lines and bold approach to jewelry making. Gemstones in favor were diamond and other premium stones like ruby, sapphire, or emerald to give it that distinctive Art Deco color sparkle appearance.
Form and function were redefined by the designers like Raymond Templier, Suzanne Belperron or Paul Brandt, and much more.
These eye-catching authentic unique jewelry designs of the Art Deco era are timeless and still set record purchase prices at famous auction houses like Sotheby’s or Christies’s as Cartier or a Van Cleef & Arpels diamond sautoir goes anywhere between $200,000 – $700,000) today.
An Art Deco engagement ring is hence not just a beautiful gem to wear, but potentially a great value-added investment too, though liquidity is not the same as buying and selling stocks with the popular Vanguard investment company.
Brick-and-Mortar versus Online Jewelers: Who gives you a better deal?
In my jewelry price comparison research between an offline jeweler and online jewelry, I’ve discovered differences of up to 30% – 50%, and sometimes even more. In favor of the internet jewelry stores due to a better cost-profit ratio.
Let me explain.
The overhead cost of the brick-and-mortar business from the physical store he rents, to employees to pay, taxes or utilities for the premises up to stocking of the jewelry products all eat up on the profits.
The store owner has no other economical choice than to pass down those costs on to the consumer – you.
The jewelry online retailer on the other hand often has a little emergency or no stock at all and orders at wholesale prices once orders are coming in. Their overall costs are usually lower which translates into better jewelry retail prices for you and me.
However, this is not to say, that you won’t occasionally find a great deal at your nearby jeweler. Most of the time though the better deal is with an internet-based jewelry store as long as you know what type of ring, chain, or earrings you are getting.
This jewelry appreciation guide should be a good start for making an informed buying decision either way.
Best Jewelry Investment Secrets (Conclusion)
How much jewelry increases in value is, as we’ve discovered, subject to different variables, typically not always under your control.
In fact, some valuable gold metal diamond stone sets might rise in the evaluation due to the above-mentioned while ordinary engagement rings might decline in market price, but climb your personal sentimental value as an heirloom.
That’s fine too.
Knowing the difference between luxury fine jewelry and everyday gemstones or metals is a valuable lesson and skill’s set for your guaranteed future jewelry purchases of any budget, style, and period.
Should I Wear or Collect Jewelry?
You can, fortunately, do both simultaneously. Unlike stocks or fine art, which you can’t carry with you all the places, arm rings, bracelets, or drop earrings can be worn or buy them as a jewelry collection investment.
Moreover, you can gift, wear them on special occasions or take them with you to that romantic date in Venice, an exciting city trip to Shanghai, or a luxurious Safari in Kenya.
Does jewelry appreciate in value?
The overall answer is that your beloved huggie earrings, diamond rings, and pearl bracelets all can appreciate in value if they fulfill the aforementioned jewelry buying guide for investors’ standards.