June 30, 2023
Jewelry as an Investment

Jewelry as an investment: 10 factors to consider before investing in jewelry

Is jewelry a worthwhile investment?

In view of the current situation in the world, jewelry as an investment of value is once again coming more into focus. Gold and silver bars and coins have always been considered a popular investment for times of crisis and in many cultures as the No. 1 store of value. High-quality jewelry, especially with fine and rare gemstones, has a high resale value and usually does not lose value.  

Jewelry a fairly liquid investment that you can sell at any time. If you invest in high-quality genuine jewelry, you can even achieve high returns. However, when buying jewelry, always pay attention to the quality and the seriousness and expertise of the seller.  

A piece of jewelry is mobile and you can easily pass it on to your children or grandchildren. Not like gold and silver coins or bars that linger uselessly in a safe until sold. No, when you choose jewelry as an investment, you also get to wear the precious pieces yourself or give them as gifts and enjoy them. The answer to the question whether jewelry is a worthwhile investment: Yes, absolutely!

In addition, jewelry always has a sentimental value and can obtain collector status, for example, if it is a special collector's or designer piece and particularly rare gemstones have been processed.

The Knight Frank Luxury Investment Index performance by asset class
The Knight Frank Luxury Investment Index performance by asset class
(Source: Knight Frank)

Factors to consider before investing in jewelry

1. Buy only in specialized stores

Check the seriousness, references and expertise of the seller (jeweler, goldsmith, designer). A detailed consultation should come first, regardless of a decision to buy. Ask questions about the background of the jewelry and how its value is calculated.

2. Jewelry purchase is emotion

Only buy a piece of jewelry that you like and would like to wear or give as a gift. The individual beauty of a piece of jewelry is important, just like a work of art. It is not about a pure investment of value. You invest your money in something beautiful for you, that should be stable in value. In the end, there are no limits to your imagination when buying a piece of jewelry with gemstones, especially when it is custom made.  

3. Only high-quality jewelry is stable in value

When you choose a piece of great quality jewelry (genuine jewelry), you are investing your money wisely. A classic ring, a simple chain or elegant earrings with a timeless look will still find a buyer in a few years. However, you should choose real jewelry with a high content of precious metal. Gold and platinum are very stable in value, even diamonds or luxurious colored gemstones hardly lose value.

4. Go for gold, platinum or precious stones

Simply put, the more expensive the precious metal, the higher the value of a piece of jewelry. Gold in all shades (yellow gold, white gold or red gold) and platinum are best. Rings, necklaces or earrings made of gold and platinum can very well have diamonds and colored gemstones (sapphire, ruby, emerald). This again significantly increases their value.  

Jewelry or semi-precious stones have a comparatively much lower value. If you want to invest in a valuable asset, always choose high quality stones of the best quality. Ideally, opt for classic colors and the higher the carat number is its value and also its performance.  

Investment in jewelry gives pleasure
Investment in jewelry gives pleasure
(source: Philophrosyne)

5. Gemstones in the jewelry make significant value

The colored gemstones include the sapphire, ruby, emerald. These are a rare natural product. Choose a fine quality of the gemstone. This will never lose its value if you bought a good to very quality at a reasonable price. Findings of fine colored gemstones have been declining significantly for years, and global demand continues to grow unabated.  

Also, particularly rare gemstones, such as the Padparadscha sapphire, alexandrite, Paraiba tourmaline, cobalt spinel or natural-colored diamonds, among others, can make a jewelry investment much more attractive, even if the budget must be high when buying. Rare remains rare and we just even rarer in the future. The rarity of the gemstones together with the quality determines the value.  

6. Jewelry from famous brand, individually created jewelry or antique jewelry?

You should buy a piece of jewelry because you like it. Whether it is a ring, necklace or earrings, it depends on the quality of the jewelry (precious metal and gemstones). With bsonderen pieces of jewelry of well-known, traditional marks (e.g. Cartier, Van Cleef Arpels, Bulgari), one pays first for the mark name, but these can have also a collector's value after many decades, which are in demand in auctions, however only if it is unique pieces and special Pretiosen.  

The best value for money often comes from a trusted goldsmith and designer who recommends a beautiful gemstone and handcrafts an individual piece of jewelry on site according to his preferences.  

Industrially produced jewelry is arbitrary and is not suitable for investment. Another interesting investment field is antique jewelry, which was created decades ago, here is on the brand or the designer value-giving together with the materials used.    

7. Price fluctuations in the precious metal must be considered

The selling price of a piece of jewelry depends heavily on the precious metal price. You can easily understand the relationship between the buying and selling price and the rate using gold as an example. Only a few years ago you could buy gold jewelry cheaper than today. The reason for this was the low gold price.  

In the past five years, the price of gold has constantly increased slightly. As an investor, you must know that any precious metal is subject to price fluctuations. The price depends on the supply and demand. If precious stones make up the significant value on the jewelry, the fluctuations are much less, as fine gemstones have only increased in value for centuries, due to their rarity and worldwide demand.

8. Ask for certificates to the piece of jewelry as a security

When buying any piece of high-quality jewelry, you should get all the criteria about it in writing from your seller. An invoice detailing the criteria of the jewelry is extremely useful as security and good for resale. On it the fineness of the precious metal and the gram specification, the color and purity of the diamonds as well as the carat weight of the gemstone and its treatment and origin should be indicated.  

For particularly valuable jewelry, ask for a certificate from an independent gemological laboratory with the criteria for the jewelry or the diamonds and gemstones. Trust is good, reliability through an independent certificate is even better. If this is not possible or too expensive, ask for a "house certificate" from the seller that he lists in his name and letterhead to you the criteria to the jewelry in detail.  

9. Get a second opinion and compare

For investment jewelry, it is always good to get a second opinion and compare. With individually created jewelry and with gemstones, this is not always easy. However, it gives you confidence when making a purchase decision or placing an order. Also, when choosing for the right specialty store and the jeweler, goldsmith or designer behind it. It is always good to have a choice and to compare like with like if possible.  

With precious metals with appropriate fineness and weight it is quite easy, also with diamonds you can get a price range by research. Online is sometimes difficult, because there is often advertised with price discounts, and you just cannot always be sure that appropriate jewelry is also available. It is therefore recommended to get an idea on the spot and to go to two jewelers or goldsmiths, to play with open cards and to get a non-binding consultation, just like you would do with a doctor before an operation.  

In the end it is a decision of emotion to the beauty of the piece of jewelry, rationality to the quantitative criteria of the precious metal and the gemstones as well as the good feeling on the seriousness and the confidence to the salesman and the goldsmith, who manufactures you a piece of jewelry after its craftsmanship.  

10. Ask questions, questions, questions...

Finally, it is simply important to ask all the questions you want. Where was the piece of jewelry made? Who created it? What quality of diamonds were used (color and clarity)? What is the quality of the gemstones? Ask to see loose gemstones as a comparison to get your own assessment for quality and value. Have the gemstones been treated and if so, how? From which country do the gemstones come? What are the local mining conditions in the country of origin? Is there a certificate with the jewelry or gemstones?  

It is also always worth asking for a discount, for a finished piece of jewelry often 5-10% discount should be possible, depending on its value. For custom made jewelry it would not be appropriate to ask for a discount, rather for services as far as resizing or cleaning is concerned.  

It is simply important that you feel well advised. When buying jewelry, people often ask too much too little, this is exactly the key to making the right purchase decision and making a worthwhile investment in high quality jewelry.

In the following, we will talk about other jewelry suitable for world investment.

Jewelry is more than just a fashion accessory – it can also be a smart investment. If you're considering adding some sparkle to your investment portfolio, these four types of jewelry are worth considering.

Gold as an Investment

Everyone knows it and almost everyone owns a piece of jewelry made of gold. A real classic that suits every occasion and outfit and is a good investment, provided it is real gold. Gold remains gold and maintains its value over time, although there are temporary fluctuations, but on a long investment horizon of more than 10 years, gold has always been worth more in the past.

Development of the gold price over the last 20 years
Development of the gold price over the last 20 years
(source: Gainesvillecoins.com)

Every real piece of jewelry should have a so-called embossing. This embossing is also called hallmark or gold stamp. The stamped number gives information about the value of the precious metal used. The number indicates the gold content in percent, i.e., 585 gold has a gold content of 58.5 percent (this corresponds to 14 carats) and 750 gold has a gold content of 75% (this corresponds to 18 carats). The purest and highest quality gold available on the market has a gold content of 99.9% (this corresponds to 24 carats). This gold is called fine gold and is what is used for gold coins and gold bars. Mostly, fine gold is used as investment gold, but it is also used in particularly fine jewelry.

Gold can be "mixed" with other precious metals, such as copper, silver, platinum and palladium. This is then referred to as an alloy. This in no way represents a reduction in value. On the contrary. The mixing of different precious metals is necessary to obtain different shades and qualities. Depending on the proportion of gold, not only the color changes, but also the hardness, malleability, and resilience. For pieces of jewelry that are to be worn permanently, such as wedding rings, and thus experience increased abrasion, 750 gold or gold-platinum alloys are suitable.

The higher the gold content, the higher the quality of the jewelry. So if you are thinking about gold jewelry as an investment, you should buy at least 14-karat gold jewelry or, if possible, even 18- or 24-karat jewelry. Here, the color alloy does not matter. Both a noble chain from rose gold, a timeless bangle from yellow gold as well as a decorative ring from white gold are good investments.

Gold is still a guarantee for stable purchasing power and has proven to be an inflation-proof and risk-free investment.

Real jewelry in gold
Real jewelry in gold
(Source: The CEO Magazine)

Silver as an investment

Who does not know it, the noble silverware, which is taken out and polished on special occasions. Even today, candlesticks made of genuine silver belong to a festively set table. Silverware has always been considered a reliable investment and in many families, it is still passed down from generation to generation.

Just as with gold jewelry, a silver stamp, also called an embossing or hallmark, provides information about the silver content in each piece of jewelry. Since pure silver is too soft, it is often alloyed, that is, mixed with other precious metals. The most common silver alloys have 800, 835, 925 and 935 thousandths of silver.

Probably the best-known silver is the so-called sterling silver, also called "standard silver". Sterling silver is 92.5% silver and 7.5% copper. Silver flatware as well as men's, women's and children's jewelry is most often made of 925.

999 silver has a silver content of 99.9%. So-called fine silver is less suitable for making jewelry because it is too soft. However, fine silver is best suited as a store of value, which is why it is used to make silver coins and silver bullion.

Compared to gold, silver is less suitable as a store of value. Silver has the advantage of being cheaper than gold. So if you don't have that much capital to start with to jump right into more expensive precious metals, silver is a good start. With silver jewelry, as with any piece of jewelry, you will of course pay more than the pure silver price because it is more costly to manufacture.

Platinum as an investment

Those who associate the terms "investment" and "precious metals" with each other usually only think of gold and silver. However, in addition to these two traditional precious metals, platinum is also becoming increasingly popular, because it is not only used to produce jewelry, but also has an important place in industry.

Both gold and silver, as well as platinum, are rare precious metals that already experience a steady increase in value due to their rarity alone. A large part of platinum is used in industry, for example to produce catalytic converters for diesel vehicles. The value therefore also stands and falls with the demand of the industry. Platinum is certainly less suitable as a sole investment, but to diversify your precious metals portfolio, it is definitely worth a second look.

Platinum jewelry is recommended as a crisis-proof investment because it is the most precious and durable of all metals. It is best suited to remain in excellent condition for generations. Platinum is very stable in value.

Only fine platinum and platinum 950 as well as gold in the alloy 750 are processed in the German jewelry manufactory. An investment of value is only an investment of value if it stands the test of time and lasts a long time. Accordingly, not only material and aesthetics play a central role, but also the craftsmanship behind it.

High quality jewelry in platinum
High quality jewelry in platinum
(Source: The New York Times)

Luxury watches as an investment

In addition to jewelry, there is of course another very worthwhile investment: watches.

There is hardly anyone who has not heard of Breitling, Rolex, Tag Heuer, Cartier and Montblanc, or already owns one or more examples of these noble time counters.

Vintage luxury watches from well-known manufacturers are coveted collector's items and are not only consistent in value, but they also even promise to increase in value more than some other jewelry. However, it takes a while for this to happen. Watches, unlike jewelry, are therefore recommended as a long-term investment.

It often takes years or even decades until a watch has such a high collector's value that it even exceeds its original purchase price many times over. Vintage watches that cost a few hundred or thousand euros to purchase can fetch tens or hundreds of thousands of euros at jewelry auctions. Many jewelers also offer vintage watches.

If you are considering purchasing a watch as an investment, there are some important points to consider:

• Pay attention to the origin. Watches Swiss manufacturers are among the most popular, as they are among the best in the world. It is not for nothing that they say: reliable as Swiss clockwork.

• The rarer, the better. Limited editions with special features have a higher chance of increasing in value. So, look out for watches that have been produced in limited editions by well-known manufacturers.

• High-quality materials, such as titanium, platinum, and gold, not only help the watch stand the test of time, but also increase its value.

• Mechanical movements have a higher chance of increasing in value. The higher quality in the make, the greater the likelihood that the watch will still be in demand many years from now.

• A watch that will one day become a high-quality collector's item needs the appropriate care. Once you have decided on a watch, you can of course wear it on your own wrist. However, the more worn it is, the less value it will have. A watch that you buy purely as an investment should at best not be worn, or only with a great deal of caution.

Watches as investment: Average prices of the top 10 luxury watch brands
Watches as investment: Average prices of the top 10 luxury watch brands
(source: chrono24)

Investing in jewelry has many advantages, below is a brief overview of them.

Pros of investing in jewelry

1. Value stability - through high-quality precious metals, diamonds and gemstones.  

2. potential - in addition to the value stability, precious stones guarantee an increase in value  

3. tangible value - those who wish to convert existing cash into a tangible asset

4. pleasure - the possibility to enjoy the piece while holding it as an investment

5. practical - the investment does not require much of your own doing, a simple, silent investment

6. liquidity - the possibility of quick sale for at least the value of the materials

7. mobility - a piece of jewelry is small and mobile and does not require maintenance  

High-end Jewelry with Gemstones
High-end Jewelry with Gemstones
(Source: Chaumet)

Cons of investing in jewelry

1. cost - the cost of a high quality piece of jewelry is higher than for other valuable investments

2. storage costs - for insurance and possibly storage in a bank safe deposit box  

3. fluctuations in value - risk in prices for precious metals due to precious stones no volatility  

4. resale - difficulty in finding a buyer or determining the value of the piece

5. sale - additional costs for certification or sale on commission or auction houses  

6. sale value - this can fluctuate, especially with custom jewelry pieces  

7. patience - the selling process often drags on for weeks, comparing suitable offers  

High-end Diamond Jewelry
High-end Diamond Jewelry
(source: GIA)

Recommendations for those considering jewelry as an investment

1. invest, only a small part of your total portfolio in jewelry

2. research carefully and consider all options before making a purchase

3. be aware of the potential risks and challenges associated with investing in jewelry

4. check the seriousness of the seller and ask questions about the piece of jewelry

5. ask for a certificate or have all the criteria documented about the piece of jewelry

6. insure your jewelry and keep it in a safe place  

7. the investment in jewelry must be a pleasure, buy only something that you really like  

8. precious stones are often the significant value, they offer a high potential of value growth

9. jewelry should be bought for eternity, even if one day you have to part with it

10. jewelry is not a quick commodity, an increase in value is achieved over a long holding period

11. investments in jewelry should always be considered, combination of emotion and rationality

Sapphires as valuable gemstones for investment
Sapphires as valuable gemstones for investment
(Source: Ceylons)

Gemstones as an investment

Gemstones in jewelry promise a significant increase in value.  

Extremely rare and correspondingly expensive are gemstones such as diamonds and colored gemstones such as sapphires, rubies and emeralds. If these are combined with gold or platinum in a piece of jewelry, they have a very high value, which they do not lose over the years. Many pieces of jewelry are also enhanced with the integration of gemstones significantly above the material value of the precious metals. Less stable in value, on the other hand, are semi-precious stones, which are only sometimes in trend and cannot be sold well at any time.

Rings, necklaces or earrings made of gold and platinum can very well be provided with diamonds and colored gemstones. This again increases their value significantly. Precious stones such as sapphires, emeralds or rubies also look noble on such a piece of jewelry. Ultimately, there are no limits to your imagination when buying a piece of jewelry with gemstones. If you want to invest in a valuable asset, always choose high-quality stones of the best quality.

Ideally, opt for classic colors. These will still be in demand in a few years. A bright semi-precious stone in the trendy tone of the season certainly looks chic. But as an investment, it could prove to be a bad buy because demand could drop in the future.

The situation is somewhat different for large gemstones with a very high carat count. The current value of such stones already easily goes into the six- to seven-figure range. If you afford such a piece of jewelry, the color and shape may of course be elaborately designed. The value will rather increase in the future, as the demand among enthusiasts and connoisseurs will remain at a high level and the worldwide demand will steadily increase, which the last 10 years have shown very impressively. All fine colored gemstones in a certain carat size have developed in their value in a double-digit percentage per year and an end is not in sight.

Ceylon sapphires in all colors - rare and valuable
Ceylon sapphires in all colors - rare and valuable
(Source: Ceylons)

How can we help?

As colored gemstone experts we are specialized in sapphires. Through our mine holdings in Sri Lanka, we mine the finest qualities of colored gemstones. As a producer and wholesaler, we supply worldwide jewelers, goldsmiths and designers with our Ceylon Sapphires. A sale to private customers is not possible. However, we can advise you in our Munich showroom and you can buy our gemstones through your trusted jeweler and goldsmith.  

Gemstones are complex, as the slightest differences in color and quality can make a significant difference in value. However, it is not as difficult as many think. If you are transparent and open about the differences and show them, everyone will recognize the differences in quality and value quite quickly.  

The world of gemstones and jewelry is very small, among the serious and knowledgeable experts know each other. We can give you a recommendation to whom you can turn to, for a high quality and high carat jewelry. Jewelry is a trusted commodity, and we can independently recommend goldsmiths and designers with whom we have been working for several years.  

When it comes to selecting gemstones for investment, we can always help with our expertise and network. Since we have besides our sapphires from our own production also the corresponding insider contacts, which are not public and just as we have direct mine access in the respective countries of origin without intermediaries.

For especially rare and rare gemstones you need a contact person who will introduce you to the matter. Helping you similar to the art market to acquire a special rarity or a particularly fine gemstone through a worldwide network, at fine quality and competitive price. In addition, it is also advisable to have this contact if you want to resell a loose gemstone, at correspondingly attractive returns through a worldwide network and market access from experts.  

Set up a FREE Consultation or contact us directly.

Disclaimer: Investment in jewelry and precious stones, requires that the buyer likes it after careful consideration and expert advice. We cannot guarantee this. This article should be rather enlightened and not represent a purchase or investment decision.


Is jewelry a good investment?

Yes, the properly selected jewelry can be a sensible investment. Rare colored gemstones in particular complement a piece of jewelry and offer potential for significant appreciation over a longer period of time.  

Does it make sense to invest in gold jewelry?

Gold, together with platinum, is the most suitable precious metal for an investment in jewelry. Together with fine gemstones of high quality, a long-term investment is worthwhile.  

Which jewelry increases in value?

Individually crafted jewelry with gemstones of the highest quality. Jewelry from special brands, if they are exclusive unique pieces. Antique jewelry that is timeless and created by renowned designers.  

What will gold be worth in 10 years?Definitely more than it is today, due to global demand. An accurate prediction of value is hypothetical. Gold is not only considered a crisis currency and safe haven, in many countries it is traditionally like a common means of payment. As humanity grows in size and purchasing power grows significantly, the value of gold will also increase significantly in value.  

How much gold can you have at home?

One must feel safe, for this reason it is necessary to insure one's gold and, if necessary, to keep it in a bank safe deposit box or a safe at home. Depending on the security measures, the value can be higher or lower.  

What is the best investment?

A mix of many things. Stocks, real estate, gold and depending on preference, art, jewelry or gemstones or other physical tangible assets. The last 10 years have shown that gemstones have low volatility and double digit returns if they are particularly fine and rare.  

Which gemstones are suitable as an investment?

The 3 color gemstones: sapphire, ruby, emerald. Also special rarities like the Padparadscha sapphire, alexandrite, Paraiba tourmaline, cobalt spinel or natural colored diamonds.

Are diamonds a good investment?

Diamonds are the classic gemstone. Pure white diamonds have averaged a small return in recent years in an after-tax consideration of a holding period of 5 or 10 years and a size of 1 and 2 carats. Natural colored diamonds have a much higher return potential but are also much more expensive in value when purchased if you specialize in rarities.


CEYLONS | MUNICH stands for the finest Ceylon sapphires. A brand committed to responsible mining of Sri Lankan gemstones obtained in an ethical manner.

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