Jewellery is more than just a luxury accessory. It is a fashion statement which can be held as an investment piece.
Enjoy the sparkle of a gemstones investment
While jewellery fans and collectors should admire key pieces of jewellery for their individual beauty, a key part of their attraction comes from the value of stones set within them and in particular coloured gemstones. At present they are the biggest growth in the jewellery trade with over a 500% increase in the last 10 years and prices are still rising year on year.
The gemstones of note to invest in are namely rubies, sapphires and emeralds but there are other gems that you may not even of heard of that can add value to your jewellery ie: tanzanite found at the foothills of Mount Kilimanjaro can sell for £1000 a carat. Other gemstones of note include alexandrite, jadeite and muscovite, with each stone selling for more than £10,000 a carat.
Gemstones are important when pricing jewellery but it is often the skill and artistry used to place them in the jewellery that are paramount. You can also have amazing jewellery that uses relatively modest priced semi-precious gemstones such as amethyst, aquamarine and topaz.
FACT: The most valuable gemstone in the world is the 24.78 carat ‘Graff Pink’ diamond that sold for £29 million in 2010. This works out a more than £1 million per carat!
Examples of gemstone investments
Sapphire: Not just Kashmir sapphires on the rise. In 2004, a 30-carat Sri Lankan sapphire sold at Bonham’s London for £11,950. A decade later, a similar Sri Lankan stone, also weighing 30 carats, sold for a staggering £326,500. An increase of 2,800%
Ruby: Recently a very impressive ruby 10.08 carats of Burma origin and pigeon blood colour, sold for £8 Million! The prices are still increasing every year at a high level making it the number one gemstone to invest in.
Factors which impact on a gemstones investment
There are five key factors to take into consideration when considering making an investment in gemstones:
Colour; hue, tone and saturation properties.
Colour statement stones set within jewellery can have a major impact on the overall value of pieces
Clarity
Origin
Carat and treatment of gemstones.
Regarding treatment there are various ones applied to improve the quality of a gemstone from:
Colour irradiation, heat, diffusion and dyeing.
Transparency – heat and fracture filling
Strengthen and stability – impregnation with organic filler ie: Oil
Keeping your jewellery and valuables safe and insured
Jewellery will be covered by your home insurance but high value items should be individually listed. It is important to have your pieces regularly valued at least every 5 years with some items requiring annual valuations.
It may be a hassle to do this and be without your jewellery but in the unfortunate instance of a claim some insurers will reimburse full cost within a 24 hour period with an up to date valuation in place.
Call Emma Patrick – Private Clients Manager to discuss ways to protect and insure your precious portfolio in more detail on 01625 547754 or email: emmap@riskworksbusiness.com