Jewelry markets have witnessed notable transformations in recent months, with many wealthy individuals turning to investing in jewelry instead of traditional assets like handbags. This trend emerged after gold prices reached record highs, leading to a surge in interest in gemstones, particularly those that are colored and rare.
The move towards jewelry, especially gemstones like sapphires, emeralds, and rarer stones, comes at a time of economic and political instability. Last December, a Christie's auction generated significant excitement in the auction market when a Tiffany necklace containing a Paraiba tourmaline sold for over $4.2 million, ten times the initial valuation.
Analysts indicate that amid economic disruptions, investments are leaning towards tangible assets. According to Torin Berken, president of the investment management firm Papamarkou Wellner Perkin, "tangible assets maintain their value or even appreciate during inflationary periods." This record price for gold has led some investors to accumulate valuable jewelry.
With gold prices exceeding $5,100 per ounce last January, traders and investors are experiencing a rising demand. Caroline Riel, an investment manager at Pictet, highlighted that this jewelry has successfully navigated the luxury market's recession over the past two years, achieving remarkable growth.
On another front, this trend signifies a widespread shift in mindset regarding jewelry. The market for soft accessories, such as handbags, has deteriorated amid rising prices and the modern retail landscape. In contrast, high-quality jewelry is less affected by seasonal trends and offers stronger resale value when compared to handbags.
Experts like Andrew Brown, founder of the MyGemma resale platform for jewelry, expect individuals to start collecting jewelry as a long-term investment. Currently, it is noted that more than 15% of engagement rings feature colored gemstones, up from just 5% over the past decade. The popularity of colored stones has surged, thanks to celebrities like Kate Middleton and Eva Longoria.
This phenomenon isn't new, but it has received strong support from today's economic conditions, where investing in colored gemstones is considered a defensive choice for investors. The value of rare gems like sapphires and emeralds has increased significantly, making them lucrative investments compared to traditional assets.
Lisa Kaley Hawn, a writer for CNBC, asserts that the shift towards jewelry is gaining new dimensions among younger generations. In 2025, youths from the millennial and Gen Z demographics represented 44% of Christie's buyers for luxury goods, demonstrating a widening interest in luxury items.
The risks and challenging conditions in the market, such as liquidity issues, security considerations, and storage costs, are evident. However, jewelry is regarded as an asset capable of preserving its value over time. The luxury and cultural traditions of fine jewelry provide strong foundations for profit, enhancing appeal within upper market segments, especially in the Middle East and Gulf regions.
Investing in colored jewelry can be seen as safe and valuable, reflecting the increasing desire among users to invest based on personal taste. The future outlook for the sector appears bright, especially as individual convictions regarding jewelry grow stronger alongside a heightened awareness of its significance as an investment asset.