Jewelry may be a poor investment when it comes to dollar
amount
– the average gem bought for full price at a mall jewelry store
will fetch a small fraction of the original price in resale – but
if you pick your pieces right, they’ll save you money in the long
run with valuable timeless appeal.
Jewelry may be a poor investment when it comes to dollar amount – the average gem bought for full price at a mall jewelry store will fetch a small fraction of the original price in resale – but if you pick your pieces right, they’ll save you money in the long run with valuable timeless appeal.
Rather than jumping at trendy pieces like colored gems in fashionable clusters, think about how styles may change in 10, 20, even 30 years. Is that fancy setting really going to be popular still? Will rose gold really be hot in 2030?
Probably not. Styles change; tastes change, said George Crowder, owner of South Valley Jewelers in Morgan Hill, but a stone has more permanence than its setting.
“I would think larger, single stones as opposed to a cluster of diamonds,” said Crowder. “When you get a cluster diamond ring, it has a life span, and a lot of the value of the ring is in the labor, in the cost of setting the stones. Once the ring has lived its life, you have a bunch of little stones that you can’t do anything with.”
And larger stones can be transferred into a variety of settings – pendants, earrings, brooches, tie tacks or the like, said Crowder.
Smaller stones can hold their value in antique pieces, though, said Bob Littlejohn, owner of Littlejohn’s Fine Jewelry in Gilroy.
“I’ve got quite a bit of the 1920s and 1930s art deco stuff, and that at least holds its value and sometimes goes up double,” said Littlejohn. “Even though they don’t have as fine a cut on the stones usually and they don’t usually have as high of quality, the labor, the workmanship and the antiquity is so valuable. These rings have already been worn for a lifetime, and they still look great.”
Clear diamonds are most sought-after, said Littlejohn, partially because the prices of colored diamonds have begun to drop. Today, artificially coloring processes for diamonds are sophisticated enough and economical enough that real colored diamonds are losing value, he said.
When it comes to purchasing pearls, Littlejohn recommended searching for quality over size or price.
“Salt-water pearls are more valuable because they hold their value,” said Littlejohn. “Freshwater pearls aren’t as hard as salt water. They don’t get the nichre (a hardened pearlescent coating on the pearl’s exterior) as deep, so they don’t wear as well in the long-run.”
However, for a shorter-term value, freshwater pearls have come a long way, according to Crowder.
“Chinese freshwater pearls used to be odd shaped and more of a button or flat style, but they’re getting better and rounder” said Crowder. “I’ve got some 10 millimeter Chinese freshwater pearls for $400 that, if they were cultured or Tahitian, would run about $10,000 per strand.”
When choosing pearls, look closely. The smoother and rounder a pearl is, the more valuable, said Littlejohn.
Luster is also important. A dull pearl didn’t stay in the oyster’s shell long enough, he said.
“If you want an idea of what’s got a good nichre, a good luster, lay the pearls across the inside of your arm,” said Littlejohn, pulling a strand across his own forearm. “See? A good set will pick up the flesh tone in the nichre.”
For overall value, stick to strands, said Crowder.
“You can always restring a strand,” said Crowder. “It’s pretty cheap. But if you have anything set into a mounting, there’s a lot of labor, and once the band wears out, you’re looking for a new setting, too.”
Bank on this
Benitoite, the California state gem, may be found locally, but don’t underestimate its value, said Bob Littlejohn, owner of Littlejohn’s Fine Jewelry in Gilroy.
“It’s mined here, but they’ve stripped it pretty well,” said Littlejohn. “The prices for it are just going to keep going up because it’s one of the rarest gemstones on earth.
“We get it because it’s local, but here’s my tip: if you have Benitoite, keep it. It’s going to keep appreciating.”
The five C’s
You may have heard that picking a diamond involves four C’s: cut, color, clarity and carat, or weight. But if you’re ever planning on reusing a stone, there’s also a fifth: calibration.
Cut
Diamonds give off most of their “fire” and “sparkle” based on their cut. Beginning with rough diamonds, cutters and master cutters shape the piece into a variety of forms – round, princess, marquis, emerald, heart – paying close attention to the ratios these cuts create. An ideal cut round diamond has 58 exactly placed facets arranged symmetrically in a circle. Exacting proportions can yield a gem that reflects all of the light that passes through it from the top, giving it a rainbow of flashes. Premium cuts come close to ideal, reflecting the majority of the light that passes through them from their tops, though they may not adhere exactly to the proportions of an ideal cut. These variations are most important when it comes to the depth of the diamond. An ideal cut will appear sparkly throughout, while a diamond that is too deep will loose light through the bottom, creating a dark spot at the center of the ring. A shallow diamond will also lose light from this area, but it will also appear watery and glassy or dark.
Color
Although most diamonds appear colorless, they actually have slight yellow or brown casts, both of which can devalue the diamond based on how visible the colors are. The color grading scale, which goes in order from the letter D through the letter Z, reflects this scale. Diamonds graded D through F appear colorless, while G through J are near colorless. Faint yellow tones begin to appear in diamonds rated K through M and show up as very light yellow in N through S diamonds. Anything past a T is considered a light yellow diamond.
Exceptions to this rule exist. Some colored diamonds – bright yellow, pink, black and gray – do occur naturally and can have very high values.
Clarity
Nearly every diamond includes naturally occurring variations in its internal structure known as inclusions, but their size, location and number can all affect a diamond’s clarity. A flawless diamond or internally flawless diamond is one in which no inclusion can be seen by an expert under 10x magnification. Diamonds certified as VVS1 or VVS2 include extremely difficult to see inclusions under 10x magnification, while diamonds marked VS1 or VS2 have minor flaws difficult to find under the same power. Below these grades there are SI1 and SI2, meaning the inclusions are noticeable and relatively easy to find under magnification while I1 and I2 inclusions are obvious under magnification and just visible to the human eye.
Carat
Carat, or the weight of a diamond, is used in determining the price of a diamond. A carat is equivalent to 200 milligrams and can be broken up into 100 “points.” A single carat is noted as 1.00 and a half carat as 0.50, but cut, color and clarity can effect the overall price of the diamond much more. Two diamonds may weigh the same, but their price will be based on other qualities.
Calibration
Ring settings and diamonds are often sold separately, with settings frequently arriving at a jeweler’s store in pre-set sizes. Diamonds, too, come in preset cuts and sizes, and are thus noted as calibrated diamonds. These are a bargain for buyers who may someday trade their setting for another, because calibrated diamonds can simply be removed from one setting and placed in another. Non-calibrated stones must have specialty settings, adding significantly to their costs.
Sources: J. Landau, Inc., “The Ideal Cut Diamond: Your Guide to the Four C’s” and George Crowder, owner of South Valley Jewelers in Morgan Hill.
