How to Invest in High Jewellery

The allure of the investing in high jewellery is tempting but getting started may not be easy as it seems. Like all investments, education is key—Tiffany & Co. offers four major tips

Investing in high jewellery collections have always been deemed as an alternative investment but the pandemic's disruption has somehow provided impetus for the jewellery market.

To put into perspective, a 6.7-carat Kashmir sapphire was auctioned for US$206,500 in 2012. Last year, a similar sized stone was bought for US$550,000. This has more than doubled in less than a decade, representing an annual increase of more than 10 per cent.

In a way, it is not surprising as the idea of high jewellery collection becomes even more appealing because as an asset, high jewellery has a lot of advantages. Unlike most investments such as stocks, cryptocurrencies or even NFTs, high jewellery is an asset which you can actually wear and enjoy. High jewellery collections could also be a fashion statement as they add sparkle and dazzle in your wardrobe while serving as a status symbol.

As an investment, high jewellery collections usually hold their value and have practical connotations given that they are easily transported and readily cashed in. It is worth taking note that high jewellery pieces are among the most portable form of wealth in the world.

Indulge in your passion

Above Earrings in platinum and 18k yellow gold with unenhanced esteemed Colombian emeralds and diamonds

It is easy to get carried away when we look at a high jewellery collection. The need to train your eyes and have a grasp of the different brands, designs and era are important but the first step is to think about your passion. This is crucial because collectors and investors will have different preferences and needs.

Some investors are looking to collect rare gemstones while others prioritise the design and craftmanship. Looking at the trend of late, there is an increase interest in Jean Schlumberger’s Bird on a Rock brooch especially among new collectors. Being one of the 21st century’s most iconic jewellery designs, this reflects a better understanding on high jewellery among investors as the Bird on a Rock brooch is an exceptional piece that highlights craftsmanship and design as well as its exceptional gemstones. Collectors can enjoy the beauty of this piece without being worried about the value of their investment given its history and incredible craftsmanship.

Scarcity and rarity are crucial

Above Platinum brooch with rectangular-shaped baguette and round diamonds from the 1940s

There are a lot of factors to consider when determining if the high jewellery piece is investment-worthy but the two most important things to look into are the scarcity and rarity of the gemstones. For example, rare fancy-coloured diamonds and coloured gemstones of esteemed origin could easily hold onto its value. Aside from that, if a stone is natural and not enhanced in any way, this would increase the value of the gemstones or the finished high jewellery itself.

A good example is Tiffany’s Fancy Intense Orange diamond ring that is high on the radar among investors. This is mainly due to the rarity of the orange diamond itself, which is extremely difficult to find and fetches a very high price.

When acquiring high jewellery, it is important to choose something from a limited series. Vintage is also another important aspect to add on your checklist as the supply of these pieces are finite despite the growing demand. Jewellery pieces that are aged around 20 to 100 years old are usually considered as vintage.

Tiffany & Co’s chief gemologist Victoria Reynolds shares this important tip: “As with anything that is truly rare, scarce and beautiful, I always recommend that the client must be in love with [the jewellery piece]. That’s what makes it magical, and what has made Tiffany & Co. High Jewellery so coveted for over 185 years.”

The different stones to own

Above Tiffany ring in platinum with an esteemed Kashmir cushion-cut sapphire of over 5 carats and mixed cut diamonds

When it comes to high jewellery collections, there is a need to understand the different gemstones and their value.

Diamonds are seen as supreme investment, followed by emeralds, rubies and sapphires. Once you understand the different gemstones, you need to know if coloured stones are more valuable. While un-enhanced gemstones are extremely rare and command a higher price, enhanced gemstones are just as valuable and accepted in the industry. The cut must also be considered too, as it plays a strong role in the final outcome of the value of the gemstone.

Other information that investors need to learn include the origin of these gemstones. For example, emeralds from Colombia are seen as better value while sapphires from Kashmir are renowned for their velvet colour. This has given Kashmir sapphires a premium as compared to the ones mined from a different geographical region.

At Tiffany & Co., the company takes pride in its responsible sourcing of gemstones. What this means is that a diamond’s region or country of origin, along with where it was cut and polished, graded and quality assured, will be shared with Tiffany customers for each newly sourced, individually registered diamond. This is important as Environment, Social and Governance (ESG) becomes more prominent going forward.

High jewellery offers diversification

Above The Tiffany Diamond

Over the last two years, we have seen the high jewellery market boom as high net-worth clients turn towards high jewellery to diversify from the uncertainties caused by the pandemic disruption. While it is still too early to tell if the global economy will fall into a recession amid the rising interest rate environment, high jewellery pieces have proven to be a good diversification for investors.

This will be important as more investors in high jewellery will boost liquidity. The upside potential is high given that the value of these pieces appreciate over time and are great investment options.

However, if you are just getting started your high jewellery collection, it is important to invest in high jewellery pieces from reputable luxury houses. This will help you to gain exposure and experience as well as build your network among investors, gemologists and experts in the field. Relationships are vital to help investors distinguish price from value, and Tiffany’s trained gemologists and experienced client advisors will play an important role to help build up your knowledge and portfolio.

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Credits

Images

Courtesy of Tiffany & Co,

Topics

Tiffany & Co. High Jewellery Collections Investments Finance

Tatler Asia

How to Invest in High Jewellery

Indulge in your passion

Scarcity and rarity are crucial

The different stones to own

High jewellery offers diversification