Is jewelry a safe investment? 

#7551 Wiese bracelet. 

Recently, my husband became enamored with the stock market. He and his cronies spend hours discussing the topic. From what I can make out, the bottom line is "will this or that share go up or will it go down?"  Similar, unanswered questions are asked of the real-estate market and the rates of interest. Nobody can predict their future.
Every now and then, the same question is asked about gold, diamonds and other precious commodities. 
I often hear the genius financiers predict a rise or a collapse in these commodities. It's linked to the popularity of politicians, it's linked to the Rand, to the Russians, to whatever happens to be the latest fad. 

Well, it's true, these things do go up and down. Few people have made a killing on these phenomena either way. However, what is utterly stable and on a perpetual trajectory upwards, is good quality antique and vintage jewelry. See my previous blog post about the value of antique jewelry. 

#7130 turquoise parure.  

How are you going to invest safely in this area? There are going to be a lot of posts in this blog that discuss this question in different forms and bring in different aspects of buying jewelry without risk. Later, there is going to be a whole series of articles on buying safely via the internet. 

The first question to ask yourself is why you are interested in investing in antique jewelry? Is it about the investment or is it because your love the jewelry? The answer to safe investing will be different, depending on your answer. If it is all about the investment, then you are probably barking up the wrong tree. If antique jewelry does not talk to you, then buy gold bars and be done with it. 
However, if you love old jewelry, then read on. It's one area where you will be killing two... well, we don't want to kill anything, but you will be making a double accomplishment ie owning something that brings you tremendous pleasure and hopefully, will be rising in value over the years. 

#4203 sapphire necklace.

While people who are passionate about antique jewelry, look at the aesthetics, there is some validity in looking at the intrinsic components of the jewelry. How much valuable metal (gold, platinum) is there? What gemstones, their size and quality?
Who made the item?  An important name adds tremendous value to jewelry. Similar items - signed or unsigned will command very different prices.
Who owned the jewelry? We usually don't know the answer to this question, but sometimes, there is a known provenance and that can increase the value of an item tremendously. Just think of Jacky Kennedy's imitation pearl necklace: worth very little intrinsically, but because it was hers and so iconic of her, it sold for hundreds of thousands of dollars. 
Age is another factor that enters the equation. Surprisingly, the greater the age does not always equate with the greater the value. Sometimes an Ancient Roman or Greek jewel might be worth less than an item from the Renaissance era. Why? Supply and demand: there is more available from the former and less from the latter. 

First and foremost you must find a trustworthy source. 
Many people resent paying a dealer (called a retailer by some authorities) a small percentage. They think that they can go to the same sources as I do and buy for much less. While the flesh on the back of my neck creeps at the thought of this, all I'll say is 'good luck' with that. That is how to buy with risk. You don't know what you are doing, you don't know who you are dealing with, you are stepping into a mine-field. It takes years of study and work to start avoiding the pitfalls of any transaction and even after decades, none of us is impervious to making mistakes. How much more the novice? 

Today, a very knowledgeable businessman asked me 'how much are diamonds today?'. If you are asking a question like that, you definitely have no business buying diamonds as an investment. Don't even think it. You can't imagine how much ignorance a question like that exposes. You are treading on dangerous ground.

4814 en tremblant brooch.

So, what do you do? Find a person you know you can trust. I have said this before and I am saying it again: the little sellers on the internet are often your safest bet. We describe items accurately, we stand behind our merchandise, we usually accept returns (within reason) and we point out every negative or flaw in the item. Do the auction houses do that? Do the big dealers do that? Do the big retailers do that? No, no, and no again. On top of all of that, the price is going to be more reasonable in most cases when you buy from small, internet sellers. 

Secondly, in tandem, try to educate yourself. There are tons of articles on the internet and in lovely coffee-table books that are a pleasure to look at and read. Go to museums and see the actual items. Depending on where you live, it might not be easy and knowledge doesn't come overnight. That brings us back to the first piece of advice: in the meantime, find a seller that you can trust so that the gaps in your knowledge do not result in unnecessary gaps in your pocket. 

#6920 butterfly brooch.  

After doing your homework, find an item that really talks to you. Regardless of what I, or anyone else says, if you love it, that's all that counts. There is no explaining or justifying different taste. If you are sure that this item will bring you pleasure 5 years from now, go for it. It doesn't matter what everyone, including the 'specialists' say. What matters is what you love and will enjoy. The money is irrelevant and will soon be forgotten. 

Most people who buy antique jewelry do so because of their passion for these beautiful, personal, wearable works of art and history that connect us to those who came before and those who will come later. 
If you buy the best, you will have all of the above as well as a savvy investment.

#6508 diamond cat brooch.