Which Investment? Shares, gold, pensions? The idea of an investment is not a complex one. We buy something and hopefully its value increases. But not necessarily.. when we buy shares or pensions even the small print tells us that the value of our investment can go up, as well as down. What if you could buy something now that would increase in value and you could wear it whilst you owned it?
Luxury pre-owned jewellery, can fit the brief and a growing number of savvy women are realising that they can have their cake and eat it by buying stylish pieces they know they can hold and sell on later on for profit. The price of new jewellery always rises. Labour, marketing and other overheads all contribute, as well as the fact that luxury items by definition cannot become cheaper. It does not make sense however, to invest in new items. It typically takes 30 years to recoup the value of a new item because so much of the RRP goes on the company’s overheads.
This is where pre-owned luxury jewellery comes into its own. The value of carefully chosen preowned designer high jewellery (platinum, gold) is often more than that of the metals and gemstones. But without the hefty overheads of the brand to pay for you are left with the items' real value. As the price of new designer jewellery rises so should that of the pre-owned. It can even weather the storms of the gold/platinum markets as it's value is propped up by the brand.
So, if luxury designer jewellery is such a good buy why don’t we hear more about it? The truth is that it’s an opaque market where 'value' isn’t clear. You need reliable dealers with a good instinct for what will make a good future investment. Brands such as Tiffany & Co., Cartier and Bulgari will always hold their value, but within those brands there are certain pieces, which carry more investment potential than others. You also need to know how to sell. If you hold for 5-10 yrs the original seller may buy your item back for more than you paid - can you imagine that happening anywhere else? If not high end auction houses are an option. If you buy new jewellery you might wait 30 years to recoup the original asking price. But with pre-owned branded jewellery you could be looking to making a substantial profit on the price paid after as little as 5 years. If you’re really lucky you could buy something that becomes the next super coveted piece. In the meantime you get to have a lot of fun wearing it.
If you would like to talk to us about jewellery for investment please call us on +44 207 692 5103 or email firstname.lastname@example.org and we’ll be happy to give you our considered advice.