Fine Jewelry - Investment, or Accessory?

Is Jewelry a Good Investment?

For the average American, jewelry is not an investment. Yeah, we said it. There are many factors that influence resale value, including the age, quality, craftsmanship, and uniqueness of the piece. If you’re not careful, you may end up “investing” in jewelry that turns out to be virtually worthless when you decide to resell. Keep reading for vital information everyone should know before “investing” in jewelry.

What is an investment?

An investment is any transaction of exchanging money for an asset that is held with the goal of obtaining a profit or return. With this definition in mind, we can confidently say that outside of Rockford Collection jewelry, most common accessories are not an investment.

Does Jewelry Keep Its Value?

The fact is, just like a new car, your piece of jewelry loses value as soon as you leave the store with it. There are few exceptions to this rule. For example, pieces that belong to established design houses like Tiffany, Cartier, Boucheron, Rockford Collection, and David Yurman, are more likely to hold their value. 

Without a widely known jewelry house backing your design, odds are the piece you purchase will not appreciate over time. Why? The hard truth is that jewelry prices are composed of many different factors, including quality, craftsmanship, contents, AND costs of production. That means that if/when you try to sell your unbranded jewelry, you’ll only get 30-50% of what you paid for it. Traditionally, unbranded jewelry is bought on the second-hand market for scrap value. It is also dependent on the level of customization that went into making something specifically for you.

Which Jewelry Appreciates in Value?

Sadly for jewelry enthusiasts, there is no one-size-fits-all formula for calculating the return on a piece of jewelry. With variations in stone and metal quality, amongst many others, there are too many factors to be able to identify what makes a heirloom piece of jewelry. Luckily for you, we’ve rounded up the best tips from industry experts on how to choose the best investment piece for you.

Checklist for Investment-Quality Jewelry:

While there is no foolproof way to know which jewelry pieces will appreciate or depreciate, this checklist will help you start your jewelry collecting journey on the right path.

• The jewelry is made of only precious stones and metals
• The piece is branded with the designer’s signature
• The jewelry still has the original documentation 
• The piece has a unique in design
  

If your article of jewelry fits these descriptions, congratulations! You very likely have heirloom-quality jewelry. If your jewelry doesn’t fit the above criteria, don’t worry. Like we said before, there are many factors that influence the resale value of your collection.

Where to Sell Your Jewelry?

For the best result in reselling any piece of jewelry, we always recommend selling privately. Pawn shops are widely known as one of the worst places to sell jewelry, due to their low valuation rate and need to make profit off their purchase. Private jewelry dealers also have reputations for undercutting their offers. For the best odds in recovering your investment, and possibly even making a profit, you should always turn to the private market. By selling directly to another consumer, you avoid any middle-man fees and get the highest return on your used jewelry. Today there are a plethora of second hand marketplaces also where people choose to list their items directly. Naturally be weary of the authenticity of a product when buying here and ask to see all receipts and details before committing or using a service that verifies the product beforehand.

Rockford Collection is actively working on a customer buy-back program for all rings and accessories. For more information on our buy-back program, please contact a customer service professional at (212) 601-2757. You can also book a private consultation online or in either of our Miami or New York locations here.

Conclusion:

To answer the question of whether or not fine jewelry is an investment, you must first have a clear understanding of what you consider an investment. If you’re looking for a high profit return, jewelry probably isn’t the right route for you. Unless it is exceptional grade stones and high in demand. There are many factors that impact the value of an item of jewelry, and reselling can get tricky. 

If you’re looking for an item that you not only enjoy wearing, but will also hold its value and even appreciate over time in cases, look no further than Rockford Collection for your heirloom-quality jewelry. To view our most iconic pieces that will last a lifetime, click here.