Is it worth investing in luxury? How much does an investment in jewelry make? Is it a good idea to buy vintage jewelry? The answer is an analysis conducted by one of the main Swiss banks, Credit Suisse. The credit institution’s research department has examined the luxury sector, such as that of jewelry, along with art, wines and collectible cars. The total value of these collectibles has been estimated at around $ 1 trillion. Result: the purchase of jewelry is in second place, immediately after the investment in art, and represents about 5 billion dollars in sales volumes.
According to the Credit Suisse Wealth Report 2020, 44% of the very wealthy buy paintings and jewels, who devote 2-5% of their assets to collectibles. But 31% do even more and spend over 5%. Only 13% of the wealthy are not in the habit of buying collectible luxury goods. The most passionate about this kind of investment are the Americans, followed by the Asian millionaires. In the luxury landscape, jewelry and watches are stable. But this does not mean that the performance over time has been excellent.
How much does it make to invest in jewelry
Credit Suisse has also calculated the return on investment in jewelry (of course this is an average) over the last ten years. Result: the vintage jewels, produced from 1945 to 1975 had an annual yield of 4.8%. The art deco ones and pearls have increased in value by 5% per year, and wristwatches have done a little better, with an increase in value of 5.5%. On the other hand, the pocket watch market, outdated, with only 1.5% annual return is sluggish.
Another positive aspect of investing in jewelry, again according to the Credit Suisse Wealth Report, concerns volatility. This term indicates the price fluctuations (always on average) for a given asset. The higher the volatility, the greater the fluctuation in the value of a jewel, for better or for worse. The jewels, among all the luxury goods examined, are those that have the lowest volatility. In short, they are the ones that keep their value most constant. For example, while for impressionist art the volatility is 19.1%, for jewels from 1945 to 1975 it is only 2.4%. Or, if contemporary art has a volatility of 35.3%, art deco jewels and pearls always have a fluctuation contained at 2.4%. Provided, of course, that you choose what you buy well, as we have explained here.
