Jewelry is an important part of human culture and history. They were created to be beautiful, but what about their value? As an investment, jewelry offers a number of advantages over other assets. They're portable, liquid and, unlike stocks or real estate, they don't require constant maintenance. But how does jewelry appreciate over time?
Metals & precious stones
The most important factor in jewelry appreciation is the metal content. Gold, silver and platinum are all precious metals that have been used for centuries as a store of value. The price of these metals is determined by supply and demand on the world market, which tends to increase over time. As a result, the price of gold has risen by more than 380% over the past 7 years. Precious stones are not to blame either. The growing scarcity of precious stones has led to an increase in their value in recent years.
Fashion & Crafts
In addition to the metal content, the quality of the craftsmanship and the rarity of the piece are also important factors in determining its value. A well-crafted, unique or limited-production piece of jewelry will be worth more than a mass-produced item. That's why you'll only find products available in small, limited editions.
> Learn more about Façonnier's limited edition concept
In addition to the quality and value brought by small production runs, the value of jewelry is influenced by fashion trends. Fashion trends can be influenced by many factors, such as celebrities - just look at the craze for sapphire daisy rings identical to the iconic engagement ring of the one and only Lady Diana. World events and social changes also influence fashion trends.
Sentimental value
Jewelry can also be a sentimental investment. A piece of jewelry that has been handed down from generation to generation, or that holds special meaning for its owner, will be worth more than its intrinsic value. It's this idea that makes our job so enjoyable.
Economy & financial markets
Finally, the value of jewelry is also influenced by inflation and economic changes. Over time, the prices of goods and services rise due to inflation, making jewelry more expensive like any other good. Jewelry can also be affected by economic changes, such as a financial crisis, which can reduce demand for jewelry and therefore its price.
While there's no guarantee that jewelry will appreciate in value, it's a safe bet that it will outperform other assets over the long term. So, if you're looking for a way to invest your money, consider adding a little sparkle to your portfolio.