Jewelry as an investment: Is the favorite piece of jewelry also an investment?

Jewelry is much more than just an accessory; pieces of jewelry highlight personalities and represent special moments in life.

But is it worth considering jewelry not only for its emotional value but also as an investment? In the following article, we will explore which pieces of jewelry have potential as investments and what aspects one should consider when wanting to invest in jewelry.

Often, when purchasing jewelry, the intention is to bring joy to someone else or oneself, so the emotional value is usually in the foreground. This could also be a shell found on the beach, for example. This is not suitable for material investment, just like the widely available costume jewelry. For an investment, rare pieces of jewelry are more appropriate, such as those made from particularly high-quality gold and set with particularly large and pure diamonds. Like our pieces made from recycled 18-carat gold.

But a special collection from a prestigious luxury jewelry brand or custom pieces from a famous designer can also achieve collector status and thus increase in value, just like antique jewelry from the past.

Gold is considered a safe investment, especially in times of crisis. The financial crisis of 2008 and the Corona pandemic of 2020 have confirmed this old adage. While stock prices plummeted, the gold price not only remained stable but even reached new record highs! It makes no difference for its monetary value whether it was recycled or newly mined. However, it should be noted that the gold price has experienced very strong fluctuations in the past.

Therefore, an investment in gold primarily helps to preserve value in difficult times, but it should always remain just a part of a complete investment mix, as it is a speculative and risky investment in the long run.

Similar to gold, silver represents a relatively safe investment in turbulent times but is otherwise subject to high price fluctuations. The value trend is particularly influenced by the electronics industry, such as e-mobility, solar, or mobile phone manufacturing.

Due to the significantly lower material value compared to gold, investing in lightweight silver jewelry is hardly worthwhile, to be honest. Instead, silver bars or silver funds and ETFs would be more appropriate.

In principle, similar considerations apply when investing in platinum as with gold or silver. However, it is noteworthy that the largest share of platinum is mined in South Africa, and thus the platinum supply is heavily dependent on the conditions in South Africa. Additionally, it is a significant industrial metal and is primarily used in the catalysts of combustion engine cars. Since around 2011, the platinum price has been steadily falling, and before making an investment, it is important to carefully consider whether and when it might rise again.

Admittedly, investing in diamonds is a demanding matter that requires a lot of expertise. The value of a diamond is determined not only by its weight, which is relatively easy to ascertain, but also by its Cut as well as color and purity. These factors are not always easy to determine, and even experts often disagree on the value of a diamond. While a diamond will always retain a certain material value that makes a total loss of the investment very unlikely, it does not generate returns or interest like other investments. In recent years, the value of diamonds has even decreased, so it is likely that, if at all, an investment in large loose stones over 1ct could be more profitable. Here, one is already looking at an investment in the lower five-digit range. Additionally, the high storage costs should definitely be taken into account.

In summary, it can be stated that due to the decline in value in recent years, an investment in larger diamonds is likely to be the most profitable, and expert advice on valuation is advisable.

When purchasing jewelry from a major brand, you are initially also paying for their brand name. For an investment, especially traditional luxury brands or iconic designers are recommended, as it can be assumed that their name will still shine for decades to come. Because a high-quality piece of jewelry is not a commodity; with a long holding period, you achieve value appreciation here. The best options for this are pieces from special collections or even exclusive custom-made items.

When a suitable piece of jewelry is found, it is a simple form of investment that requires little work, unlike, for example, real estate. Additionally, one is excellently protected against a total loss of the investment, and the piece of jewelry can always be resold for at least its current material value. And of course, it is a beautiful investment that one can also wear and enjoy.

A jewelry investment will really pay off only if you have the opportunity to invest in a particularly high-quality and rare piece of jewelry to invest. Additionally, the relatively high storage costs for insurance and safekeeping in a safe are a disadvantage, while the piece of jewelry does not yield any return or dividend. Finally, a lot of patience is required for resale. It can take months to find the right buyer who also recognizes the desired selling value in the piece of jewelry.

Make sure that you can sell your piece of jewelry as a piece of jewelry and not just get the melt value of the precious metal and the material value of the gemstones from a dealer.

To help with this, be sure to pay attention to a jewelry certificate when purchasing or keep the receipt. These should document the fineness and weight of the precious metal as well as the color, clarity, and carat of the diamond. Now, the right buyer still needs to be found.

A jewelry investment is most worthwhile if you have the necessary budget and time for it. It should not only be a purely financial decision for an investment but also an emotional one for a wonderful piece of jewelry that accompanies you for a part of your life and is then allowed to move on.