Whilst most people purchase vintage jewellery for personal use, it is often overlooked as a viable investment opportunity. Here we discuss vintage jewellery investment.
As with any industry, the value of vintage jewellery can waver, however, it has truly stood the test of time and continues to make people money year after year.
If you are considering investing in vintage jewellery, there are a few things you need to consider beforehand to make sure that you know what to expect and to ensure that your investment is profitable!
Are You Prepared For A Long Term Investment?
The first, and arguably most important, thing to consider when it comes to investing in vintage jewellery is that it is a long-term investment. When you invest in a stunning piece of vintage jewellery, it will accumulate value over time, although this could take decades potentially.
This is a very good investment if you were wanting to generate generational wealth, as future generations will profit the most from this. It is unlikely you will be able to buy a piece of vintage jewellery, sell it within the month and make a profit on it. As long as you are aware that this is a long-term investment, it is certainly a viable one.
Know The Basics of Jewellery Valuation
Whilst it is advised to have a professional valuation for every piece of jewellery that you buy, it is important that you understand the basics of jewellery valuation so you can establish a ballpark figure that you should get for the piece. If you have a trusted contact who you know can evaluate the jewellery, this is less of a concern, but it is always useful to have good knowledge of this as a vintage jewellery investor.
Here are the main things you need to look for that can have an impact on the value of your jewellery. In diamonds and other gemstones, you should look for:
- Clarity – this looks at the purity of the diamond and the presence of any flaws. The fewer flaws the diamond has, the more valuable it becomes.
- Colour – each gemstone can come in an array of colours, for example, diamonds can be pink, yellow, purple, green and red. The colour of a gemstone can either enhance or decrease the value, as a red diamond is far more valuable than a yellow diamond because red is far rarer.
- Cut – the shape and facets of the gemstone can influence its value, as the more faceted, the greater the value. One of the most popular cuts is the round brilliant, as it has 47 facets.
- Carat – this refers to the mass of the gemstone, with each carat weighing 200 milligrams. This can also then be divided into 100 subpoints, so you could have a 1.75-carat diamond. Usually, the value of the gemstone increases with the carat, although this also depends on the quality. Two three-carat diamonds could be vastly different in value due to this.
In terms of the metal, you would focus on the:
- Purity – pure metals are ones that have not been alloyed with other metals and must be at least 99% pure at a minimum. Density is one way to measure how pure metal is.
- Weight – quite simply, as the weight of the metal increases, so does the value.
- Hallmarks – original gold hallmarking dates back as far as the 1200s and it is a method used to show the purity of a piece of gold. Small markings should be found somewhere on a real gold ring, such as a sponsor’s mark, traditional fineness, a millesimal fineness mark, assay office mark and date letter mark.
This should give you an overview of the value factors, so you have an idea when you come to buy it or eventually go to sell it!
Consider The Most Popular Eras
Finally, it is important to consider the most popular eras. The fact that a piece of jewellery is vintage does not necessarily mean that it is in demand. However, there are some absolutely timeless eras that produced stunning pieces of jewellery that offer the best chance of a high return on investment.
Original jewellery from the Georgian era is exceptionally rare, fantastic quality and it is generally very beautiful, so this is a good era when it comes to investment. Also, the iconic nature of Art Deco jewellery and again, the exquisite quality, makes this era another strong investment opportunity. You can follow some jewellery and fashion bloggers to see what is trending and which vintage jewellery is currently in high demand.
Understanding what to expect of high-value vintage jewellery is key to identifying the best opportunity for the right investor. In London you can consult experienced and knowledgeable Hatton Garden Jewellers that can offer advice and good jewellery investment options.