Customer looking at diamond halo engagement ring in showroom

Is jewellery shedding worth? All the things you might want to know

While many items increase or decrease in value over time, different rules apply to jewelry. The long-term value of jewelry mainly depends on its type and age. High-quality, rare jewelry may have a higher value in the future, while artificial jewelry is almost guaranteed to lose value. Before doing this, however, there are many other factors that need to be considered.

In this article, we’ll cover whether jewelry depreciates over time. We’ll also give you some tips on which jewelry you should and shouldn’t invest in.

Does jewelry lose value over time?

Customer looks at diamond halo engagement ring in showroom

Yes, most jewelry will depreciate over time. Jewelry has been a luxury item since ancient times. In addition, jewelry is often viewed as a type of currency because the line between jewelry and money is sometimes blurred. In addition to being used as currency on occasion, jewelry is a common type of heirloom as well.

But how and why does jewelry lose value over time?

In most cases, jewelry is valued in terms of quality, rarity, and age. For example, high quality jewelry loses value over time, but more slowly than artificial or cheap jewelry. In contrast, cheap imitations and fake gemstones are initially not very valuable. Their price can drop dramatically once you leave the store.

Important NOTE: Antique jewelry, rare jewelry, and historical or unique jewelry not only have the same value, they become appreciate quickly over time. Read our guide to investing in jewelry.

In contrast to cars and electrical appliances, which lose value with use, jewelry does not have to lose value when you wear them. Antique or vintage jewelry will not go down in price even if it has already been worn. This is because nobody objects to sharing jewelry and also because their historical / rare value is more important than anything else.

This is how you can tell whether your jewelry is valuable

Use a magnifying glass over a peridot halo ring

Verifying the value of your jewelry is especially important in the event of divorce, family division, or inheritance. Your jewelry could be worth thousands of dollars, but it could also sell for as little as $ 50. There are several ways to check whether your jewelry is valuable or not.

If you’ve been wearing a particular piece of jewelry for years but it’s not chipped, scratched, or discolored, this is a sign that it is a high-quality piece of jewelry. That’s because real jewelry rarely tarnishes over time.

There are easy ways to verify that your jewelry is real, but the best way to verify that your jewelry is valuable is to have it professionally appraised.

Experts can estimate the monetary value of your jewelry if you can’t remember how much you originally paid for it. However, you may find that you have been scammed and paid too much for the real value of the jewelry. An official jewelry appraisal provides you with the necessary information to determine the value. For example, the article is described in detail, including its quality and composition.

With this document you can sell your jewelry at a much higher price than without it.

Is Jewelry a Good Investment?

Afshin and Adira with a necklace in the showroom

As already mentioned, The quality and rarity of the jewelry determine whether or not it is a good investment.

As its value continues to grow over time, it becomes an excellent asset. Many jewelry investors will prefer to invest in jewelry simply because knowing what you are doing is less risky. Jewelry is a good investment because its value is more reliable even when the stock market fluctuates.

It is important to note that during market recessions and inflation, the value of your jewelry can also go down so the price is not set in stone. However, this doesn’t happen too often, and when it does, it is never a significant shift in value. What you should know is that if you want to sell a rare piece of jewelry that you bought a long time ago, its price will likely be twice or three times lower than the original wholesale price. Market disruptions aside, demand is another factor that can affect the value of jewelry.

Note that these rules only apply to fine jewelry of the highest quality. You should stay away from substandard and commercial jewelry if you want to invest.

What types of jewelry should and shouldn’t you invest in?

Sapphire flower ring with magnifying glassCashmere sapphires are one of the hottest investments on the market right now

Before you decide to invest in jewelry, it is important to do your research or speak to an expert.

Fine jewelry is usually made from high quality metals such as platinum or gold. They also feature valuable gemstones such as gem quality diamonds, sapphires, emeralds, rubies, and more. The design doesn’t have to affect its value at all; Fine jewelry can be ornate or minimalist.

If you are wondering what type of jewelry to invest in, rarer vintage jewelry is known to be one of the hottest goods. For example, you can’t go wrong with quality jewelry from the Victorian, Edwardian, and Art Deco eras. Especially if the center contains a rare gem quality gemstone.

Diamonds are the most expensive gemstones in most cases (the cost of a 1-carat diamond ranges from $ 1,300 to $ 16,500), but only the very high quality gemstones will increase in value as they age. In fact, the moment you buy an inferior diamond, a large part of its value (20% to 30%) disappears. Lab grown diamonds (which we strongly advise against ever buying) will lose their resale value by 80% once you purchase them.

In some cases, a laptop or phone loses approximately 60% of its value the moment you turn it on.

Jewelry that depreciates in value over time is often referred to as costume jewelry or costume jewelry. This type of jewelry is usually cheaper and made from cheaper materials like brass, copper, and bronze. It can even be made of plastic or wood. However, costume jewelry can sometimes look more expensive than high-end brands that sell for thousands of dollars. Because of this, you need to be careful to verify the authenticity of the item before buying.

Tips on buying jewelry that won’t depreciate in value over time

When looking to invest in jewelry that is unlikely to depreciate in the future, consider the following factors:

Insurance reports

Conclusion of a contract for jewelry insurance

If you are buying a high quality piece of jewelry like a diamond engagement ring, you will need an insurance report. In this way, your insurance company can pay for any problems that may arise at the correct value. In addition, your insurance valuation uses the replacement value of your ring. In other words, you will receive the maximum amount of money that is required for the replacement.

Buy from reputable jewelry brands

Afshin and Adira with vintage earring in Estate Diamond jewelry box

You should always buy from a trustworthy and reputable jeweler. Where to buy your jewelry can have a significant impact on the depreciation rate. If you buy the item at a pawn shop or auction, there is a greater chance that it will depreciate in value over time. This is because your insurance company will accept the retail price of a reputable jewelry retailer rather than the alternative, lower price.

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Check the trademark

Gold hallmark on an Italian necklace

The reason you need to check that your jewelry has a hallmark is because it certifies the purity of gold, silver, platinum or palladium. It’s incredibly easy to make man-made precious metals, and just as difficult to tell apart. It is for this reason that the trademark guideline was created. In addition to the metal content of the piece of jewelry, it can even reveal the country of origin of the piece of jewelry.

Determine the quality

Customer using a magnifying glass on a diamond engagement ring in the showroom

There are many things you can do to find out about your investment. Assessing the quality of the item is one of them.

With diamonds, for example, everything revolves around “the four Cs” (cut, clarity, carat and color). It is best to look for diamonds that belong to GIA’s DE color category (that is the colorless group) and that have VVS1 and VVS2 clarity. If you find FL and IF clarity diamonds “internally flawless”, you are in great luck, as such diamonds are extremely rare.

Choose vintage over contemporary

Vintage jewelry in the real estate diamond jewelry showroomSome of the Estate Diamond Jewelry Vintage Collection

While it may be tempting to buy a piece from your favorite designer’s latest collection, vintage jewelry is far more valuable. In general, the older it is, the more valuable it is. Jewelry is considered antique when it is at least 100 years old. More specifically, jewelry from the Edwardian, Victorian, and Art Deco era will have much higher value than newer items. If the piece is unique, it becomes even more valuable.

If you have vintage jewelry, you can sell it at auction, where you will likely make more money from it.

The real value of jewelry

Fine jewelry usually does not lose its value. In fact, it may even increase in value in the future. Artificial costume jewelry of poor quality depreciates in value much more quickly. The most valuable type of jewelry is rare and ancient jewelry that has not been damaged in any way. If you want to invest in jewelry, gold, diamonds, silver, and other precious stones are the best options.

Talk to a jewelry expert

Buy a diamond engagement ring from Estate Diamond Jewelry

Do you have any questions about jewelry planting and jewelry depreciation? Don’t hesitate to contact one of our jewelry experts. You will answer immediately.

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