Why Jewelry Is Becoming A Luxury Investment

TL;DR

Fine jewelry is gaining investment appeal because precious metals and rare gemstones offer tangible stores of wealth amid economic uncertainty.

Key Points

• 1.Soft luxury is losing ground to hard luxury. The average resale premium for Hermès Birkin and Kelly bags dropped from 2.2x retail in 2022 to just 1.4x by late last year, while demand for watches and fine jewelry has grown.
• 2.About one-third of renewed jewelry interest is a 'flight to safety.' Bernstein's global head of luxury goods estimates wealthy buyers are treating high-end pieces containing precious metals and rare gemstones as miniature stores of wealth in an uncertain economy.
• 3.Colored gemstones are surging as diamond alternatives. Rubies, sapphires, and emeralds are harder to lab-replicate than diamonds, driving their share of engagement rings from ~5% a decade ago to ~15% today, with celebrities like Kate Middleton and Halle Berry fueling the trend — though experts warn jewelry remains illiquid and carries storage and insurance costs.