Rich shoppers put money into jewellery amid rising uncertainty, market volatility

When the gavel got here down in December, Christie’s had set a document that created a buzz within the public sale world.

A Tiffany & Co. necklace adorned with a glowing blue Paraiba tourmaline gem and diamonds offered for greater than $4.2 million, 10 instances its low estimate. An identical pair of earrings hit the block subsequent, and it too offered for 10 instances its estimate.

“I believe that was actually a marker for a way far personal shoppers are keen to go for these distinctive items,” stated Jacqueline DiSante, vice chairman and head of gross sales of Christie’s New York jewellery division.

Amid financial and geopolitical uncertainty, a sure class of shoppers are turning towards an unlikely asset class — jewellery. The pattern comes as buyers more and more flock to tangible belongings. For ultrarich shoppers, coloured gems reminiscent of rubies, sapphires and emeralds are particularly in style proper now.

“Each time you’ve got macroeconomic volatility … the attraction of exhausting asset investing goes up,” stated Thorne Perkin, president of funding administration agency Papamarkou Wellner Perkin. “Tangible belongings, they have an inclination to retain their worth and even improve when inflation rises.”

Mario Ortelli, a managing accomplice at strategic and M&A advisor Ortelli&Co., agreed with Perkin’s take, saying that there was clearly a “defensive aspect” to the pattern.

“In durations of inflation, geopolitical stress, or monetary market volatility, tangible belongings grow to be extra enticing,” he stated in an e mail. “Branded jewellery can perform as a transportable retailer of worth.”

“In contrast to vogue equipment which can be tied to seasonal cycles, iconic jewellery collections have a for much longer product life cycle,” he added. “In lots of instances, in addition they exhibit stronger resale worth dynamics than purses. That longevity and perceived capital preservation assist clarify jewellery’s relative resilience versus delicate luxurious.”

Luca Solca, world head of luxurious items at Bernstein, estimated that roughly one-third of the renewed curiosity in gold-heavy and gemstone-driven jewellery might be tied to “flight to security” conduct for buyers.

Robust resale worth

Surging gold costs have performed a task. Lengthy thought of a safe-haven asset, gold in January soared to its highest value ever, above $5,100 an oz. Though costs have pulled again since, it nonetheless trades at a lofty stage, above $4,500 an oz.

“I believe the view of knickknack — gold jewellery, diamond and gemstone jewellery — being considered as an funding is enhanced by, clearly, the virtually day by day improve within the gold value,” stated Andrew Brown, founder and CEO of luxurious resale platform MyGemma.

DiSante, of Christie’s, stated document excessive gold costs have incentivized some collectors to return out of the woodwork and promote sure items.

Jewellery’s sturdiness within the resale market is a part of its attraction, consultants say. Brown stated he often sees shoppers reselling branded jewellery years after their unique buy, typically at costs that maintain up much better than designer purses, which present put on from use a lot simpler.

Jewellery has managed to buck softness within the luxurious market and has been rising “fairly properly” over the previous two years, based on Caroline Reyl, senior funding supervisor of Pictet’s premium manufacturers technique.

Reyl stated she has seen shoppers shifting away from “delicate luxurious” gadgets reminiscent of purses and equipment. On the identical time, “exhausting luxurious” items reminiscent of watches and positive jewellery have grown in recognition. Reyl attributed the change to excessive value hikes for purses as a consequence of beforehand sturdy demand and provide chain disruption.

High quality considerations have additionally been a headwind, Brown stated.

A Bernstein research discovered public sale costs for Hermès’ iconic purses have fallen, and common resale premiums for Birkin and Kelly baggage slipped from 2.2 instances in 2022 to 1.4 instances final November.

“Leather-based doesn’t have a variety of inherent worth,” stated Ankur Daga, founder and CEO of positive jewellery e-commerce firm Angara. “As gold is appreciating, individuals are understanding increasingly that this can be a very precious asset.”

Sturdiness has helped reinforce jewellery’s popularity as a long-term retailer of worth, particularly items from well-known manufacturers reminiscent of Cartier, Van Cleef & Arpels, Tiffany & Co., and Bulgari. Brown estimated that these 4 manufacturers made up round 90% of MyGemma’s jewellery gross sales.

A ‘ardour funding’

There’s additionally an emotional aspect to jewellery. Perkin referred to as it a “ardour funding,” with shoppers doubtlessly drawn in by an “aspect of status.”

Ortelli agreed. He stated the model fairness, craftsmanship and shortage aspect reinforce the notion of sturdiness and worth retention.

“Branded jewellery has traditionally skilled mid- to high-single-digit annual value will increase over the long run, relying on model and the design,” Ortelli stated. “As resale typically happens at a reasonable low cost to present retail pricing, over a 5-10 yr horizon, homeowners can continuously exit above their unique buy value.”

‘Colour is en vogue’

Gold-heavy jewellery advantages from a value ground created by the intrinsic worth of the steel, Ortelli stated. “Nonetheless, distinctive gems — particularly uncommon, high-quality sapphires, rubies, or emeralds — can command important collector premiums,” he stated.

Trend developments at present favor coloured gems, which have emerged as one of many fastest-growing jewellery segments.

Lucrezia Buccellati, jewellery designer and co-creative director of Italian jewellery home Buccellati, stated that is notably true in Asian markets. Coloured stones enable for extra artistic designs and sometimes attraction to consumers who need extra distinctive and private items, she defined.

Customers additionally could also be in search of options to diamonds.

There’s a “real dearth of gem-quality materials that is popping out of the earth,” Angara’s Daga stated. He defined it’s harder to copy coloured gems in a lab. In contrast to diamonds, the stone’s inclusions — or the minerals trapped inside throughout formation — present character and improve the worth of a coloured gemstone.

“No two are precisely alike, and I believe that is what makes them so attention-grabbing to at this time’s market,” DiSante stated, evaluating every one to a bit of artwork. “In a world the place we’re seeing lab-grown diamonds being made, and it seems like this conveyor belt … you’ll be able to’t try this with a sapphire or ruby or emerald.”

Daga stated he expects coloured gems will respect quicker than gold.

“For those who take a look at Sotheby’s and Christie’s auctions, these gems are buying and selling at numbers no one would have thought potential 5 years in the past, and it is solely going to extend,” he stated. “Colour is en vogue.”

Coloured gems have traded at two to a few instances the excessive estimates at public sale homes, which is “very uncommon” provided that public sale homes normally calibrate high and low bids comparatively properly, Daga stated.

As proof of the pattern’s energy, Daga estimated that round 15% of engagement rings at this time function a coloured gemstone, up from 5% a decade in the past. They’ve maybe been additional popularized because of celebrities reminiscent of Kate Middleton, Eva Longoria, Halle Berry, Rita Ora and Halsey.

The pattern has additionally introduced in youthful shoppers. In 2025, millennials and Gen Z accounted for 44% of Christie’s luxurious consumers, DiSante stated.

If macro uncertainty persists, consultants reminiscent of Reyl stated they count on jewellery investing to proceed. Buccellati concurred, saying inside excessive luxurious, she expects jewellery to proceed rising and surpassing delicate luxurious items.

There are particular challenges, nonetheless, together with illiquidity, security considerations and storage prices. And in contrast to shares or actual property, jewellery doesn’t present its homeowners with an earnings.

“Jewellery shouldn’t be considered as a monetary asset equal to equities or ETFs — liquidity, transaction prices, and dispersion of returns are a lot increased,” Ortelli stated.

He added that the long-term outlook for branded luxurious jewellery is optimistic, however cyclical.

“The class performs greatest in supportive macroeconomic environments with rising wealth creation and political stability. … Within the occasion of a extreme macroeconomic downturn, demand would contract,” he wrote.

And that’s the place some collectors could discover consolation within the extra emotional elements of knickknack.

“I believe there’s one thing actually romantic a couple of coloured stone,” DiSante stated. “There’s one thing actually unimaginable about once you assume that it fashioned within the Earth a whole bunch of 1000’s of years in the past. And if it is a Kashmir sapphire — that mine was solely mined for 20 years within the early 1900s — there is a sure romanticism behind it you could’t replicate.”

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