Is Expensive Jewelry Really Worth What You Pay For It?

by Tom White
Are you thinking about splashing out on some fine jewelry this year? The price tag may be off-putting – but could this purchase actually represent a great investment? Ultimately, ‘worth’ always boils down to what people are willing to pay for something. But in the world of high-end jewelry, there are some key things to consider to help decide whether that Tiffany necklace or hand-crafted gold ring is really worth what you’ll pay for it.
The Investment Factor
Expensive jewelry, usually incorporating precious metals or stones and made by high-end or luxury designer brands, can make for a good investment. Jewelry has always been traditionally passed down through generations, both for its sentimental and financial value, representing the fact that fine jewelry is often purchased with a view to the future
Gold, silver, platinum, diamonds, etc, all tend to retain -if not significantly increase -their value over time, meaning that
expensive jewelry can represent a tangible investment. This is why it’s important to make sure you have adequate jewelry insurance coverage, just in case the worst happens.
The Durability Factor
Unlike costume pieces, most expensive jewelry is designed and crafted to last, a key reason that it’s worth the higher price for many buyers. Having several items of such jewelry in your collection is a great way to ensure you’ll always have a few beautiful pieces that’ll last for years -if not decades -without tarnishing, for example, or having a clasp break.
Fine jewelry is usually designed with timelessness and classic style in mind rather than fashion trends, so again, unlike costume pieces, it’s likely to provide a lifetime of beautiful wearing.
The Status Factor
It’s always been the way: fine jewelry is a status symbol, and, as such, this is a part of its value. While this value is harder to quantify, it’s nevertheless real and adds tothe ‘worth’ of an item of jewelry. In terms of investment, the creations of highly recognized luxury brands, like Chanel or Cartier, could become highly sought-after vintage pieces worth more than their original value.
When is Expensive Jewelry Not Worth It?
So now we’ve had a look at a few of the reasons that expensive jewelry can be worth the money; let’s consider the flip side of the coin: when jewelry may not be such a good investment.
When it’s Fake
Most obviously, knock-off designer or high-end jewelry is not worth the price tag. Spotting a fake can be difficult, but in general, if the price seems too good to be true, it probably is. If you’re wondering whether an item you already own is, in fact, the real deal, pop along to a professional jeweler, who’ll be able to tell you for sure.
When the Brand’s Resale Value is Low
While fine jewelry from some brands may retain -or increase -its value, this isn’t always the case. Do a little research if you’re buying expensive designer jewelry with investment in mind to find out what the typical resale price of similar items from the brand is. This will give you an idea of how likely or otherwise it is that the piece is ‘worth’ the money.
When it’s Mass Produced
Jewelry that’s been mass-produced is unlikely to represent a good investment. The sheer volume on the market has a crucial effect on value, and if you’re purchasing with a view to investment, hand-crafted or limited edition runs of an item are probably your best bet.
How to Start Your Collection
If you’ve decided that you’d like to buy a few key pieces of fine jewelry to create a stunning capsule collection, it’s important to choose the right items to get maximum wearing bang for your buck. A simple gold or silver bangle, perhaps set with a few sparkling diamonds or other precious stones, is a great place to start and will look fabulous with anything.
A pair of diamond stud earrings and a real freshwater pearl necklace (with either white or pink pearls) are also pieces that will stand the test of time and elevate any look. Over time, continue to build your collection with, for example, a pair of fine chandelier earrings, a sparkling silver and sapphire tennis bracelet, and an exquisite drop pendant necklace.
Expensive Jewelry: an Investment in Timeless Style
Most professional jewelers agree that high-quality, fine jewelry can make for both a great financial and style investment. Just a small number of expensive pieces, either handcrafted or from high-end retailers and brands, can give you a capsule collection that will uplevel any outfit. Be mindful of fakes or high fashion items that may give you just a season or two of wearing. Instead, opt for fine jewelry that will keep its fashion -and financial -capital for a lifetime.
Presented by APG

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