Affluent Investors Turn to Jewelry for Stability During Market Volatility and Economic Uncertainty

Imagine if your favorite baseball card collection could also help keep your money safe when times get tough. That’s what’s happening with luxury jewelry today—people are treating fancy necklaces and rings as both treasures and investments.

Why Investors Care About Jewelry

Jewelry isn’t just for showing off at parties. Lately, more investors are buying jewelry, especially when the economy feels shaky or prices are rising fast. Think of it like buying gold coins—jewelry can hold its value, or even grow, when other investments are risky.

For example, a Tiffany & Co. necklace with a rare blue gem recently sold at auction for over $4 million, way above what experts expected. That’s a sign that people are willing to pay big for special pieces, even when money feels tight elsewhere.

Bull Case: Why Jewelry Looks Good Right Now

• Hard Asset Appeal: Jewelry, like gold or gemstones, is a “hard asset.” These tend to stay valuable when inflation is high or markets are bumpy. Gold recently reached above $2,400 an ounce, a record high. (World Gold Council)
• Strong Resale Value: Unlike designer handbags, which can wear out, jewelry from brands like Cartier or Tiffany often resells for close to or even more than its original price.
• “Passion Investment”: People love the beauty, history, and personal meaning of jewelry. That emotional value can help it keep its price, even when other luxury goods dip.
• Colorful Trend: Rare colored gemstones (like sapphires or rubies) are especially hot. More engagement rings now feature these stones—15% today, up from just 5% a decade ago.
• Younger Buyers Joining: Millennials and Gen Z made up 44% of luxury jewelry buyers at Christie’s auctions in 2025.

Bear Case: Risks and Downsides

• Not as Liquid: It’s harder and slower to sell a necklace than stocks or real estate. You might have to wait for the right buyer or auction.
• Storage and Safety: Expensive jewelry needs to be kept safe, which can mean extra costs for insurance or secure storage.
• No Income: Unlike rental property or dividend stocks, jewelry doesn’t pay you money just for owning it.
• Market Swings: If the economy gets really bad, even luxury jewelry prices can fall, especially for less-famous brands or lower-quality pieces.
• High Transaction Costs: Selling at auction or through dealers usually means paying hefty commissions or fees.

Jewelry vs. Other Luxury Goods

Jewelry has been more resilient than “soft luxury” items like handbags or shoes. For example, resale prices for famous Hermès bags dropped from 2.2 times retail price in 2022 to just 1.4 times by late 2023 (Bernstein Research). Meanwhile, quality jewelry continues to attract buyers and keep its value.

Experts say branded jewelry—think Cartier, Van Cleef & Arpels, Tiffany & Co., and Bulgari—makes up the majority of strong resale sales. Their pieces are seen as more durable and timeless.

Historical Context: Jewelry’s Staying Power

Gold and gemstones have been considered “safe haven” assets for centuries. During uncertain times, people have turned to these hard assets to protect their wealth—just like during the oil crisis of the 1970s or the financial crash of 2008.

According to a study from Knight Frank, rare jewelry and colored gemstones have seen average annual price increases of 5–8% over the past decade (Knight Frank Wealth Report).

Investor Takeaway

• Diversify with Caution: Consider adding a small amount of quality jewelry or gold to your portfolio, but don’t rely on it for quick cash or steady income.
• Focus on Top Brands and Rare Gems: Pieces from top jewelry houses and rare colored stones tend to hold value best.
• Plan for Storage and Selling Costs: Be ready to pay for secure storage and understand auction or dealer fees before you buy or sell.
• Think Long-Term: Jewelry can be a good store of value over many years, especially if you choose timeless, high-quality pieces.
• Enjoy the Passion: If you love the beauty and story behind your jewelry, that emotional value is worth something too—even if prices dip.

For the full original report, see CNBC