Diamonds as an Investment

Antique Jewelry Investment

 

In our previous two newsletters we discussed the appropriate ways in which to invest in Fancy Colored Diamonds (FCDs). Today we would like to talk about the third way: investing in antique jewelry which is set with fancy color diamonds.

Before we begin we must point out that although we specialize in colored diamonds, we are not antique jewelry experts.

 

Experts predict that while the jewelry market is expected to experience several years of stagnant sales, “estate jewelry” has achieved at least modest gains. That’s because the popularity of estate and vintage pieces is growing, even as the overall jewelry market falters. Since inventory is fixed and often in short supply, antique jewelry is sought after by consumers looking for one-of-a-kind pieces. Collectors of antique jewelry come from far and wide, always seeking that one unique item. There are many various auctions and road shows all over the world and serious collectors know where to find under-priced items and resell them for much more.

 

The desire for estate jewelry is not limited to the United States; it has become a global addiction. International markets such as Russia, Far East and Middle East are looking to collect jewelry and are realizing and appreciating jewelry as an art form. With estate jewelry, the customer tends to approach the product as a collector rather than a consumer, viewing the piece not only as a beautiful object, but as something that could appreciate in value over time.

Experts today say that jewelry from the 1950s and ’60s is less in vogue. The most sought-after pieces currently are those from the 1920s and ’30s and the Art Deco period. Lately there have been less of these pieces on the market, and as a result, the value has shot up to almost double or triple estimates.

 

Important Tips:

  • When shopping for estate jewelry, you should look for a period piece that speaks to you and suits your personality. If you plan on wearing the item every day and not just for special occasions, make sure it is versatile and can go with business and weekend wear. And while it is important to buy a piece you’ll wear and future generations will want to keep, the item should also have a strong resale value. Stay away from trendy items and stick to the classics that will still be in style 20 years from now.

  • If you plan to get your next piece at an auction, be careful not to be seduced by seemingly discounted prices. Some people tend to get carried away when it comes to bidding.

  • Finally, be aware of fakes. Art Deco pieces don’t always have their original stone. Sometimes the stones have been changed and replaced with cheaper semi-precious stones. Ask the jeweler or auction house if they think the stone is an original.

  • There is a lot of “homework” to do prior to getting into this market, but if and when you gain these tools, you can make a nice profit as well as enjoy what you buy.

You can find a good starting point article form Forbes in regards to investing in Estate Jewelry.

You can find as well a complete Diamonds Investing Guide at Novel Collection Diamond Investment page.