Buying Jewelry In Difficult Times

During times of war and crisis, our focus tends to be on the issues of the day. There are few topics that truly capture our minds if they don’t directly offer a solution to current problems. But is there room for buying jewelry amidst today’s challenges?

Surprisingly, yes. Jewelry has always been a symbol of prestige, wealth, authority, and power. Today, it may be more of an accessory for most people, but its importance has not diminished. Whether it’s for a significant occasion such as a wedding, birth, communion, or anniversary, we always seek something unique and irreplaceable.

What about as an investment?

You can buy jewelry as an investment, but only if you’re thinking long-term. When you purchase an artistic piece, its value will likely multiply over the years. This increase can be seen in two ways. First, over time, the artist may gain more commercial success, leading to higher prices for their works. Second, and no less important, the value of the materials used to create the piece, such as gold or gemstones, will also rise. For instance, in 1998 the price of gold was around 292 USD per ounce, while in 2018 it closed at 1281.65 USD per ounce (Source: https://www.cotizacionrealoro.com/historicos-graficas-evolucion-precio-oro).

Therefore, buying jewelry is more connected to prestige, heritage, or collecting, rather than resale.

Curiosity: In Russia and former Soviet countries, there is a tradition of gifting gold jewelry to young girls. These pieces become their personal treasure, which can act as a tangible savings in times of crisis.

The sanctions imposed on the bank accounts of Russian nationals living across the European Union have severely impacted their lives. In many cases, the way to survive this crisis lies in the jewelry each woman has accumulated throughout her life.

And in the short term?

Personally, I wouldn’t recommend buying jewelry for short-term resale. Most jewelry loses at least 50% of its retail price the moment it leaves the store. What you often buy in most jewelry stores is a type of “jewelry confection,” which, in the event of a resale, will only recover part of the value of the materials used.

Buying expensive jewelry in difficult times?

I would say yes. After all, the value of money is constantly falling, while decorative objects and art tend to appreciate over time. Moreover, in times when banks are pushing to digitize money and phase out physical cash, these objects can be a good solution for maintaining solvency. In this way, beyond adorning your wardrobe on special occasions, what you’re acquiring is long-term peace of mind. It’s about stability with no alternative in any other asset.