How to Invest In Jewellery for Long Term Returns

Jewellery is not just about fashion or luxury in the short-term, it can also be purchased as an investment for the long-term.

Go Vintage

Older pieces of jewellery are also known as vintage pieces and they are extremely popular and can be worth great value if they are genuine. In fact, prices have increased by 80% over the last ten years with Art Deco style pieces from the era of the First World War experiencing some of the best returns.

The Belle Epoque is a design that is still in fashion and it comes from around the 1870’s. This jewellery came from a time when jewellers really took advantage of the likes of platinum and set diamonds. This kind of jewellery has increased by 90%.

There is a history to this kind of jewellery and that is all part of the charm, but some of the pieces can fetch a lot of money. For those looking to invest in jewellery you should also consider the fact that the designers name may not be on the jewellery. Instead, the designer is often given away by a small mark that cannot be seen by the naked eye. Therefore, you should look for pieces by the likes of Belperron, Boucheron, Bulgari, Tifan and Harry Winston as they are all desirable pieces.

However, British-based jewellers from the 1960’s and 1970’s are also growing in popularity. These jewellers are the likes of John Donald and Stuart Devlin to name a few. They were known to create pieces that were experimental but works of art that were appreciated by many.

Stones that Sparkle

The value of the stone in many pieces is what draws in investors. The diamond is the most sought after stone although prices did drop last year but one-carat diamonds have increased in value by as much as 50%. The weight of a diamond is measured by a carat with one carat weighing the equivalent of 200 milligrams.

The market for trading diamonds is unregulated and so, an element of knowledge is required to invest in them. Commonly, investors spend a minimum of £5,000 when investing in diamonds but they keep them for a minimum of five years while ensuring that they have a certificate of authentication. As every diamond is unique they can be hard to value but they are valued by studying the clarity, colour, cut and carat.

The overall value of pieces is impacted by colour statement stones. It is worth thinking about Sapphires, Emeralds and Rubies, however there are other gems that could also increase the value of jewellery such as blue-purple stone, alexandrite, muscovite and jadeite. Gemstones form an important part the pricing process but the artistry and skill involved in creating them is also important.

Safe, Secure and Insured

A home insurance policy will often cover jewellery, although any pieces worth upwards of £2,000 will have to be individual listed but if you are unsure of what a piece is worth, you should have it valued.

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Peter Scully

Marketing Director at SF Media

Keen author and blogger. Peter writes on a number of topics he has a personal interest in, including brand promotion, marketing, social media, online marketing and small business advertising.