Considering estate jewelry as an investment is an excellent way to broaden your portfolio beyond typical assets. Estate jewelry’s value comes from its uniqueness, craftsmanship, and history, offering a worth based on the piece’s condition, background, and beauty.
Investing in estate jewelry can be a smart choice for those seeking financial returns from collectible items or the intrinsic value of the precious metals and stones they contain. Explore the benefits of adding estate jewelry to your investment strategy and how AU Precious Metals can guide you in building wealth.
What is Estate Jewelry?
Estate jewelry is a term used to describe pieces that have been previously owned, distinguishing them from new or contemporary items. The label “estate” originally implied that the jewelry came from the estate of a deceased person but now broadly refers to any pre-owned jewelry, regardless of its origin.
This category can include various styles, from vintage pieces dating back a few decades to antique items over a hundred years old. Typically, you can find the following types of estate jewelry that may hold value for their rarity, lineage, materials, or other characteristics:
- Antique brooches made of gold or silver and set with diamonds or other precious gemstones
- Art Deco-era engagement rings and wedding bands set with a diamond, ruby, emerald, or sapphire
- Retro and post-war gold or silver bracelets, often featuring intricate designs and multiple gemstones
- Classic jewelry timepieces, such as designer watches made using precious metals and gemstones
Is Estate Jewelry a Good Investment? The Top Reasons to Buy Estate Pieces
Investing in estate jewelry, though not a conventional asset offers unique advantages to your portfolio and overall wealth. Here are key reasons why adding these unique pieces to your asset collection can be beneficial:
Value Appreciation Potential
Investing in estate jewelry offers the potential for value appreciation, which means its worth increases with time. Unlike new jewelry, which can depreciate once purchased, estate pieces often increase in value. This is especially true for jewelry from coveted periods or famous manufacturers.
For instance, jewelry from the Art Deco era, known for its bold, geometric designs, has seen a consistent rise in demand and price as collectors seek out its distinctive style. The value of pieces made in the 1920s and 30s rose by 72% in recent years.
Similarly, pieces by famous jewelry houses like Cartier or Tiffany & Co., once part of an estate, can increase in value due to their craftsmanship, brand legacy, and historical context.
The value of estate jewelry often appreciates due to its limited availability and increasing demand from collectors. Carefully selected pieces can enhance an investment portfolio, providing visual pleasure and monetary gains.
Raw Material Value
The intrinsic value of its materials bolsters the allure of estate jewelry’s investment. Precious metals, such as gold, silver, and platinum, and gemstones like diamonds, rubies, sapphires, and emeralds, tend to maintain their value. Therefore, an estate piece might still be valuable for the sheer worth of its materials, even if its design or historical significance doesn’t add value.
Take, for instance, estate jewelry made from 18-karat gold, which holds a significant quantity of pure gold, valued independently from the design or historical context of the item. As of February 27, 2024, the market price of gold stood at about $2,029 per troy ounce. Therefore, the piece’s value could reach the thousands, depending on the gold content.
High Liquidity
The more liquid an investment asset is, the faster you can convert it into cash, with the least loss of value during the transaction. Estate jewelry made of precious metals and gemstones is generally considered highly liquid due to three factors:
- Market demand. Estate jewelry’s liquidity is influenced by current market demand for the specific type of jewelry, precious metals, or gemstones it contains. High demand can make selling quickly and at a favorable price easier.
- Recognizability and desirability: Certain brands, historical periods, or unique designs can increase the desirability of estate jewelry, potentially making it more liquid if there’s a strong market of collectors and enthusiasts.
- Quality and condition: The overall quality and condition of the estate jewelry also affect its liquidity. High-quality pieces in good condition will likely retain value and be easier to sell.
Potential to Become a Family Heirloom
Unlike stocks or bonds, jewelry often holds emotional or symbolic significance. It’s commonly passed down through generations, embodying a family’s heritage and bonds. This sentimental value can enhance a piece’s attractiveness to collectors, potentially boosting its investment value.
Estate jewelry from particular historical periods showcases craftsmanship no longer practiced today, making these pieces irreplaceable and more desirable. This uniqueness adds to their charm and can increase their resale value.
For example, Art Deco and Art Nouveau jewelry often feature guilloché enameling, a meticulous metalworking method that creates detailed patterns on metal surfaces. Among the most renowned examples of this technique are the Fabergé eggs, celebrated for their exquisite craftsmanship and intricate designs.
Protection Against Inflation
The rarity and intrinsic value of a piece of jewelry’s precious materials can do more than just raise the value of your investments; they can also protect your wealth and provide financial stability in periods of economic trouble.
During periods of economic inflation, the purchasing power of the U.S. Dollar decreases. In contrast, the value of gold, silver, precious gemstones, and other investment assets remains stable or increases.
Rare and desirable assets, such as estate jewelry from specific makers or eras, typically increase in value during these periods. This makes these investments a solid strategy for safeguarding your wealth against inflation.
Where to Sell or Invest in Estate Jewelry
AU Precious Metals can help you with your estate jewelry investment needs. Our friendly staff in Rochester and Novi, Michigan, can help you with the following:
- Expert valuation services. Our team has experience dealing in precious metals, gemstones, and jewelry. We can use state-of-the-art X-ray fluorescence (XRF) spectrometry equipment to help you determine the value of your estate jewelry.
This process can help you understand your jewelry’s worth so you can decide whether to invest, sell, or keep it in your collection. - Investment advice. We can offer guidance and insights to help you make the best investment decisions for your financial objectives. Tell us about your goals, portfolio needs, and risk tolerance, and we’ll help you find the ideal jewelry or precious metal assets to invest in.
- Turn your jewelry into cash. Need to raise cash quickly? AU Precious Metals will pay cash for your pre-owned jewelry. We pay top dollar for pieces made using precious metals and gemstones, including gold, silver, platinum, and diamond.
If you can’t stop by in person, we offer a mail in program at our Rochester location. This lets you mail your estate pieces to us for a fair settlement offer, which you can receive in cash, check, money order, or precious metal bullion.
Diversify Your Portfolio with AU Precious Metals
Growing your wealth means investing in assets that can add different levels and types of financial gains to your portfolio. At AU Precious Metals, we can help you on this journey by assessing the value of your estate jewelry and offering insights into how different precious metal materials can boost your financial growth.
Our knowledgeable staff follows the latest market trends and can provide you with investment advice and accurate appraisal services. Contact us to learn if estate jewelry is a good investment for you and get started today.
