Which Jewellery Pieces Make a Worthwhile Investment?

If you’re looking to invest in jewellery, and you’d rather pick out items that will retain their value, or even appreciate over time, then you’ll need to research your options carefully. For those unfamiliar with the market, it can be easy to be dazzled by the showier options. So, before diving in, why not take a moment to consider the things that really influence the price of jewellery, and how those factors might affect your return in the long term?

Understanding the Value of Precious Metals and Gemstones

The value of the precious metals from which a given item is made can act as a baseline for its overall value. However much a given ring, necklace or bracelet might depreciate, it will always be worth something when melted down. This might matter should you decide to pawn or sell the item

Thus, the intrinsic value of the metal contributes to the price you’ll pay. Look not just at the metal itself, but its purity, which is often measured in carats. You might find the purity stamped on the item. This figure is typically found inside a small octagon, and it is expressed in parts per thousand. So, if a gold ring has 999 printed on it, you can assume it is nearly entirely made from gold.

The Significance of Brand and Craftsmanship

The quality of any given item might be difficult for a layperson to judge. This is where branding can be so important. When an item is created by a reputable company, like Van Cleef & Arpels, everyone can be reasonably assured that it is of high quality. Thus, prestigious brands tend to translate into higher prices.

The Role of Rarity and Historical Significance

The role of basic market forces is easy to see in the world of jewellery. When an item is in high demand, but low supply, its value will be pushed upward – because competition for it will be fiercer. This can be seen when an item has been worn by a particular person, or when it comes from a particularly desirable era. Art Deco items from the 1910s have come into fashion in recent years, and so you can expect to pay a great deal for them.

Buyers who are able to anticipate trends in fashion could stand to earn a great deal by investing early in items that might later surge in popularity – and therefore value.

Market Trends and Economic Factors Influencing Jewellery Investments

Jewellery is a luxury good, and thus it has a particular relationship with macroeconomic trends. Following the financial crisis in 2008, luxury goods went through a boom period. More recently, the market has undergone something of a downturn.

The better your understanding of these trends, and the forces that drive them, the better your chances of securing a profit in this kind of market.