Happy Valentines Day!
…ever wonder how much those Valentine jewels will be worth years down the line?
In February, a little blue box from Tiffany’s can be a symbol of love, commitment, or (in some cases) desperation. We exchange gems and jewelry as a symbol of our affection because they are beautiful, rare, and valuable. While being madly in love is a perfectly acceptable reason to give a gift of diamonds or gold, what happens to the value of those beloved pieces over time?
Anyone looking for an engagement ring quickly learns that not all rings (or other jewelry, for that matter) are created equal.
With many consumers on a budget, finding items that will retain their value can be a very challenging process. Marketplaces like Amazon, Alibaba, and Costco are able to sell vast quantities of mass produced low-level product with seamless efficiency. While it is possible to find jewelry in a very affordable price range, such pieces often end up on the bargain shelves when it comes to resale. Consumers will also notice that their local jewelers are closing up shop or adjusting their services in reaction to this heavy competition.
If you want to invest in jewelry, consider quality of materials and workmanship.
Each stone or material is different and has its own markers for judging quality. In the diamond world, think the 4 Cs: cut, clarity, color and carat. A smaller, but well-colored clear diamond will retain its value better than a larger, more cloudy piece. The material surrounding the gems, whether it be a bracelet or a watch, is also important. For gold, higher karat items (like 18K) will be more expensive, but they are more likely to retain their value than lesser gold content (10K).
While new stone shapes may be trendy, classic cuts are more likely to their preserve their worth. Round brilliant is more respected than a marquise. The same thought goes with brands. Iconic names like Tiffany & Co., Cartier, Rolex and Patek Philippe have strong reputations that will likely continue into the future.
When buying jewelry, buy for the enjoyment of wearing!
Watches, gems, and jewelry can be a fashionable accessory, a commemoration, a commitment, or an investment, or, if you’re lucky, a nice combination of all of the above. Be sure to get a GIA certificate, an appraisal, insurance coverage, and keep your receipts and documents in your safe.
Remember, the best jewelry investments are those that reflect the feelings in your heart.
Happy Valentine’s Day!
Lynn Magnusson, ASA, AAA
Co-Authors: Lynn Magnusson, ASA, AAA and Becky Lipnick, Communications Coordinator