Fine jewelry is gaining much popularity among people and is also becoming a fantastic investment opportunity. Before investing in fine jewelry, it's essential to understand its value. This entails being able the ability to determine and measure its worth. Fine jewelry is entirely different from standard fashion jewelry in terms of the material used. Typically, fashion jewelry is made of low-value metal alloys such as brass and copper.
On the other hand, fine jewelry is made of high-quality and expensive metals such as gold, platinum, and sterling silver, while featuring other pure and special gemstones, including diamonds, emeralds, sapphires, and rubies. Typically, they're elegant and high-value forms of jewelry.
There are some reasons why people invest in fine jewelry, as follows:
- Durability
Fine jewelry is durable since it's made of expensive metals and pure gems. Most jewelry lovers consider fine jewelry due to its durability, making it a long-lasting investment. Most fashion jewelry made of low-value metal alloys can easily get damaged, rusted, or tarnished. This isn't the case in fine jewelry. They're hard to break and long-lasting. Even if you want to resale the jewelry, you'll still get better value.
- Versatility
You can get all sorts of fine jewelry ranging from earrings, bracelets, necklaces, rings to anklets. All these come in varied styles, sizes, and designs, depending on the wearer's choice.
- Easily customizable
People who like maintaining their fashion standards up to date consider getting fine jewelry since it can easily be customized. Generally, it can be molded into every design depending on your taste and preference. This means that it can serve you for many years, provided that it's customized depending on current fashion trends.
Does fine jewelry depreciate?
This has been a subject of debate among jewelry enthusiasts. Depreciation works differently in jewelry compared to other items. Typically, fine jewelry doesn't depreciate or lose value over time. Sometimes, its value can even appreciate in the future. There's usually no guarantee that fine jewelry will lose its value over time. Jewelry value is measured by age, quality, and rarity. In rare cases, fine jewelry may lose value much slower than low-quality jewelry. Again, fake gemstones and cheaper imitations are less valuable and tend to depreciate more. Jewelry experts recommend buyers find help when buying fine jewelry to avoid getting duplicate items that won't last or serve them longer.
How to determine the value of fine jewelry?
It's essential to verify the value of fine jewelry, especially during buying, inheritance, divorce, or family division. Determining the actual value makes it easier to get the accurate market value. This can be done in several ways. If you've got fine jewelry that has lasted for a while and doesn't show signs of discoloration, chipping, or scratches, be sure that it still holds its value. The best technique to determine the value of fine jewelry is through a professional appraisal. Here, an expert will use various mechanisms to determine the monetary value of the piece if the wearer can't recall the original price. In this case, it's easier to know if you overpaid or underpaid for the piece. The expert will give you a valuation report containing the complete value information such as composition and quality.
Types of fine jewelry that don't lose value:
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Gold jewelry
If you want unique and stylish jewelry, consider getting gold jewelry. Gold jewelry designs are common in the market and are largely associated with high-class and wealthy people. Gold jewelry doesn't depreciate over time, meaning it's a good investment option. Regardless of the duration you stay with the jewelry, you'll still get value when you resale it in the future. However, you need to buy gold jewelry with high purity percentage if you want it to hold its value.
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Palladium jewelry
Palladium is among the leading precious metals that belongs to the group of platinum metals. It's a rare metal that you won't find out everywhere. The first palladium jewelry was introduced during the second world war. The metal was used as an alternative solution to platinum which was used for various applications during the war.
Although you can still get palladium jewelry in the market, they're still rare than their counterparts' gold, platinum, and sterling silver jewelry. If you manage to get palladium jewelry, be sure you're making an excellent investment since it holds its value and sometimes appreciates. This is because its manufacturing process adheres to industry standards and best practices. It adheres to 95% purity, with the remaining percentage featuring ruthenium and other hypoallergenic metals, which makes it durable. Palladium jewelry is ideal for wearers with sensitivity problems. The metal is also lightweight and has shiny white brilliance. Though palladium belongs to the group of platinum metals, it's typically 12% stronger than the actual platinum, which makes it last longer.
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Diamond jewelry
Diamond jewelry retains its value for a long time. It also rarely appreciates in value. Simply because it holds its market value, it can be a perfect choice for jewelry enthusiasts who can't afford expensive gold or silver jewelry. When buying diamond jewelry, you should be keen enough to avoid buying imitations widely found in the market. Some sellers will advertise that they're selling high-quality diamond jewelry only to find that they're simply imitations of the original jewelry. If you don't know how to differentiate between authentic and fake diamond jewelry, ask for help from experts or people who've interacted with them before. You should also beware of lab-grown diamonds since they'll lose value over time.
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Silver jewelry
This is another great fine jewelry option that holds its value over time. Besides being valuable, silver jewelry is also beautiful and versatile, meaning it's ideal for nearly all occasions. The value of silver jewelry depends on the silver percentage in it. High-quality silver jewelry should have at least 92.5% pure silver.
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Platinum jewelry
Platinum jewelry holds its value for a long time. Platinum metal is quite versatile, although it's a bit rare compared to gold. The metal is dense and can easily be manipulated without destroying it since it maintains its durability. Platinum jewelry is also resistant to scratches and wear and tear. However, it's essential to note that platinum jewelry value depends on the metal's percentage purity. Platinum jewelry doesn't depreciate since the material used has high strength, tarnish free, hypoallergenic, and resistant to heat. If you've got sensitive skin or experience allergies, consider getting platinum jewelry.
Tips to purchase fine jewelry that holds its value
Nobody wants to invest in fine jewelry that loses its value considering its high costs and market value. Below are top tips to help you purchase fine jewelry that holds its value over time:
Look at the hallmark
The main role of a hallmark in fine jewelry is to certify the percentage purity of the material used in making the jewelry, including palladium, gold, platinum, and sterling silver. Hallmark policies were created to make it easier to differentiate between artificial and original precious metals. By looking at the hallmark, it becomes easier to determine the jewelry's country of origin and percentage of metal content.
Purchase from reputable brands
When it comes to buying fine jewelry, you should avoid visiting any brand you come across online to avoid the risk of getting imitations. If you're buying jewelry for the first time, you can ask for references from your family members, friends, or colleagues. This way, you'll get the necessary information about the fine jewelry collections in various stores plus their prices before you make your final purchase decision. Buying from an auction is the worst mistake you'll make when finding fine jewelry. In this case, there's a high risk of getting jewelry that'll depreciate over time. Furthermore, insurance providers are less likely to accept such dealers.
Select vintage over contemporary
The choice of whether to select vintage or contemporary jewelry largely depends on the wearer's taste and preference. However, if you want to get fine jewelry that's valuable, experts recommend vintage jewelry. Typically, the older the vintage jewelry, the higher the value. According to experts, to classify jewelry as antique, it must have a hundred years or more. Most people with vintage jewelry are also in a better position to resale it in auctions at a much better value.
Check the quality
You must check the quality of the fine jewelry to ascertain that you're spending your hard-earned cash on the right piece of jewelry. For instance, if you're interested in getting diamond jewelry, you must consider four Cs, i.e., color, cut, carat, and clarity. High-quality diamonds should have WS1 & WS2 clarity and should be classified into GIA's D-E color.
In conclusion, these are top tips for purchasing fine jewelry that holds its value over time. Fine jewelry also requires insurance appraisal. The main benefit of this is to get reimbursement for issues that occur affecting the value of the jewelry. If you're a jewelry enthusiast and want to avoid losing money by purchasing low-quality, artificial jewelry, consider getting expert help. Although this might come at a cost, it's practically feasible compared to buying fine jewelry only to find it's not the original version.