Annabel Zarandi, our Valuations Manager, blogs about investing in jewellery.
Having worked within the jewellery industry for years, I often have people ask me for advice when it comes to investing their money in jewellery. If you are thinking of investing some money into a piece of jewellery, here are just a few pointers I would suggest:
DO buy at auction: If it is an antique piece with a little history behind it, then an auction is the place to get it. There are plenty of auction houses with excellent jewellery auctions: Fellows, Bonhams and Christie's to name but a few. The specialists here are some of the best in the business and will have a vast amount of knowledge of the piece you are interested in. The auction estimates are always reflective of the true open market value and therefore you will always be getting your money's worth.
DON’T get carried away in a bidding war! Remember there is always a buyer’s premium to pay at an auction, try not to get “paddle happy”.
DO your diamond research. If it is diamonds you want, be sure you know exactly what you want. It is always worth having a basic knowledge of the four C’s. So really think about the cut of the diamond you want. The most desired cut is the round brilliant cut, as its 58 facets showcase the optimum brilliance and fire of a diamond. However, other cuts are recently proving to be just as popular and fetching excellent prices at auction. These include the asscher cut and radiant cut.
DON’T be tempted to buy a diamond that is too large for you and you wouldn’t feel comfortable wearing.
DO be savvy as to the colour and clarity of the diamond. The higher the grading letter, the whiter the diamond with D being the whitest diamond there is. A lot of antique diamonds are slightly tinted, which is fine considering their age. If a diamond is slightly yellow in hue and is being described as a “fancy colour”, or any other sort of description of that ilk without a certificate to authenticate this, I would steer clear of it. It is most likely a strongly tinted diamond rather than an actual fancy colour diamond. With the clarity of your diamond, you ideally want it to be as clear and inclusion free as possible. The Clarity grade scale begins from internally flawless to pique 3. A good commercial clarity to aim for would be a VS1-SI1.
DO ask if there have been any treatments to any gemstones and diamonds. Some gems may have their colour improved with use of chemical irradiation, and clarity enhanced by using fillers. I would not be inclined to purchase these items as the treatments may have weakened the stone. If the gem comes certificated, then it will always state it.
DON’T dismiss the carat the item is set in. Bear this in mind as this is reflective of the quality of any diamonds or gems set in it. For example, a 9ct gold ring will not be set with D colour, internally flawless diamonds.
DON’T be swayed investing your money in current fashion trends. You want your jewellery to wear and age well. Try to envisage yourself wearing the piece in 10 years time.
AND FINALLY! Love your jewellery! Try not to get too caught up thinking of your jewellery as an investment. Of course if you purchase wisely it will always hold its value should you put it through auction. But essentially jewellery is there to be worn and enjoyed, so enjoy it!
