Does jewelry appreciate?
Robert D.
Stupid question time.
Does Jewelry appreciate? If one has a very special watch, an estate
watch, should one expect it to retain its value? It purchased some ten
years ago for say $5,000 would I expect to be able to sell it for more
or less than it was originally bought for?
Robert
Bob Gaskey
"Robert D." <rob...@dewdropinn.com> wrote:
>Stupid question time.
Not a stupid question at all. In fact it's one that more people should ask
before buying the wrong things for the wrong reasons.
>Does Jewelry appreciate?
It can. For the most part it does not. The secondary market for jewelry,
gemstones, watches, etc. is highly speculative as a general rule. The vast
amount of jewelry will not appreciate over time. Usually very specific
conditions must occur in order for a piece of jewelry to appreciate.
Because a piece is rare is no assurance that it will be more valuable in time.
It helps, but if it is of no interest to anyone, rarity will have little
bearing on future value.
Provenance can have a profound effect on value even if it is not rare. Elvis
Presley's favorite ring for instance may increase in value though it may in and
of itself be of little worth. Look at Jackie Kennedy's possessions recently sold
for example. Even the provenance factor is subject to change over time. The day
will come when people will say "Elvis who?" . From today's standpoint the value
then will be very unpredictable.
> If one has a very special watch, an estate
>watch, should one expect it to retain its value?
One "should" but one can't. Part of the problem in understanding this is that
people assume that an old piece must be valuable. Rarely is that the case. In
recent years the Daytona by Rolex has sold for more than asking retail price in
the U.S. and as much as two and three times retail in Europe. This is on a brand
new watch. Age may not be a factor in collectability at all. It is rarely clear
why certain articles are desireable over others. Public whims and fancies
dictate supply and demand and tastes can change overnight. How much would you
pay for a cabbage patch doll today? Probably less than in it's heyday.
> It purchased some ten
>years ago for say $5,000 would I expect to be able to sell it for more
>or less than it was originally bought for?
Part of the answer is dependent on what you paid for it at the time. Was the
$5000 retail at the time? Or was it wholesale? Or was it far less than
wholesale?
As a rule in order to appreciate in value any item needs to be consistenly
desireable, in immaculate condition, have provenence and with a measure of
skill, knowledge, and good luck, be bought for a song and a dance. No easy
task. There are many seasoned professionals out there looking for the same
things who are your competition.
Don't fall victim to the unsrupulous dealer or jeweler who tries to sell
anything with the implication that it will assuredly appreciate in value. The
best anyone can do is be aware of past trends for any given item. Performance in
the past is no guarantee of future performance. Ask anyone in this newsgroup
about the gold, silver, and diamond fiasco of the late 1970's and early 1980's.
Finally you must always consider who you will sell your collectable item to when
you so choose. Odds are you will have a very limited market to sell it to. Most
readily available buyers will be knowledgeable, shrewd dealers, who will have
the discipline to walk away from a deal that leaves no room for them to make any
money on it by reselling it. Private collectors are usually hard to find and are
as shrewd as most dealers.
Before you buy anything get on the phone or do some legwork and find out what a
buyer will pay for the item you are interested in. Get an average by talking to
more than one dealer. You should pay less than they are willing to pay if you
have any hope of making any money in the future. Make sure when calling that you
ask what they would pay cash for the item today. Ask specifically if they would
buy the item today for cash. Many will toss out some figure off the top of their
heads with no intention of buying. These "quotes" are worthless and could easily
lead you astray. You want to try to ascertain value by talking with someone who
has an immediate and active interest in buying.
Collecting can be enjoyable and profitable. Most go into it with little or no
information and lose money. Experience and knowledge are the keys to success.
Best of luck and best regards,
Bob Gaskey G.G.
1 Lucky Texan
Bob, superb advice.
Also remember inflation ,From the turn of the century to today
prices should be multiplied somewhere from x10 to x20. Of course,no
amount of money could have bought a calculater or airplane in 1900,but
for things like food,clothing, shelter and other fairly 'constant' items
'prices' have increased but 'value' has not. example: loaf of bread--say
about 5 cents 1940 about $1 now. BUT perhaps it takes working about the
same fraction of an hour to BUY a loaf. Example: gold--say $20 to $32 in
1940 now about $370. If you personally buy a Rolex today,keep it for 30
years and ,lets say you actually get it's 'inflation adjusted' value back
(break even) by selling it,you STILL may have lost money due to the 'lost
opportunity' of investing the money for those 30 years!!!
Jewelry is not really for investing (except for the special
situations already well explained) it's about personal adornment (which
probably cannot be well explained).
Carl
1 Lucky Texan
Sherry Bailey
One thing more -- artist value. A choice few jewelers will appreciate in value
(sort of a provenance issue, but more basic!) As a major example, Carl Faberge
jewelry is not something to unload at a yard sale! There are artists less
famous than him who's work also appeals to collectors, more from the art
standpoint than the "precious materials" standpoint. It doesn't apply to much
out there, but it is a factor to bear in mind.
Sherry
Brenda K. Reichel
depends on the market and what you had bought...
you should get a current appraisal in your market area..
look for someone qualified..
ISA, AGA,AGS..NAJA,NGJA...
Brenda Reichel GG,ISA,AGA<ASG<NAJA<NGJA
Carats & Karats
1254 South King Street
Honolulu, HI 96814
Andrew Werby
[I agree. For some reason, art jewelry is generally priced
lower than drawings and paintings these days. I'm not sure what the
reason is, but it would seem to provide an excellent opportunity to a
contrarian investor with a good eye who can afford to speculate a bit.
Remember, it is often the items that are undervalued at the time of
their production that appreciate the most in the long run.]
See the art of Andrew Werby: sculpture, jewelry, and graphics.
Browse the "techniques" section for information on various art processes.
Link to places on the web with information useful to artists.
Be the first on your block to know what "juxtamorphic" art is!
Andrew Werby - United Artworks