Investment strategies for pearl investment

Pearl is not thought-out suitable for investment. Some of the pearl jewelleries are expensive and some buyers invest in it for their love for pearl but there may not be much resale value as of diamonds or gold. Buyers of some of the best pearl pieces feel the jewellery looses shine and may suffer from wear and tear, which is not seen in diamond or gold pieces. This is not completely true. Some such jewellery is expensive and can dictate great prices. The brand value such as Akoya pearl are known for designs and rate. As an investment, the rate of pearls doubled in the last 10 years.

High value pearls

The pearl brands from Cartier, VanCleef and Bulgari and the Christian Dior have higher resale values. Brands provide guarantee that the rates will increase in future and offer long-term returns, where investment for 60 to 70 years may be required. Some of the pearl pieces set in the Titanic era and mixed with other stones such as topaz, rubies, garnets and sapphires can provide exceptional rates. The buyer has to pay VAT on new purchase, but for a second hand jewellery one does not need to pay VAT.

In 2014, Sotheby jewellery sales surpassed $600 million and the rival Christie got $757.7 million in the same year. These include rare gems and pearl jewellery, where the collector sold rare pieces. In the pearl market, the multi strand necklace from European seller was sold for $4.5 million, while, it was auctioned for $3.8 million.

The famous The Cowdray Pearl necklace was sold for $3.3 million in 2012, where it was a single strand grey pearl necklace.

In 1997, The Nina Dyer Black Pearl Necklace, was sold for $913,320 at Christie Geneva auction. It was a three strand black pearl necklace.

Cultural impact

Such jewelleries retain value due to culture where the item is offered on wedding from one generation to next. The expectation that the value will immediately go up in a few days or months is erroneous.  Investors seeking quick growth in pearl may be disappointed and in some cases, the buyers may not even get the invested value after a decade years.

How to select?

The pieces which are branded and are limited edition, from a designer, or, those bought by celebrities, the vintage pieces or antiques, are considered valuable and can be a good investment.  

Some of the valuable jewelleries are the Art Deco of 1920 to 1935, which are mostly platinum and diamond jewelleries. The ones having strong lineage and modern designs are always popular.

The VanCleef, Cartier and Arpels with exceptional designs and quality are loved by all buyers and these can get enormous values for years of investments.

The brands Tiffany and Boucheron from France, the rings, earnings and brooches are still very famous and in demand.

The value of gold and diamonds are determined by market value and the price of jewellery is strongly influenced by the movement of stone value or metal growth in market. Artist made jewellery are also in demand, where buyers search for John Donald, Andrew Grima, Stuart Devlin   and other designer made items.

To know more about rare gems/ pearl investment, check Asset Class Pedia at (https://assetclasspedia.com/).