Why is investment jewelry better?
Fine jewelry is usually not a value-retaining purchase and most of the time bad for the environment. Investment jewelry is good for the consumer because it offers high quality metal, low markups and good resale value. Sustainable investment jewelry is also good for the planet.
THE TOP DIFFERENCES
Fine jewelry (Cartier, Tiffany, Bulgari, etc) is made of 18 karat gold (=75% gold). Investment jewelry is made of 24 karat gold (=99.9%).
Depreciating versus appreciating purchase
Today, people buy $1B worth of jewelry every day, or ~$300B annually. $100B of that is spent in Asia on high-carat jewelry. By contrast, most US jewelry is crafted from 14K (58% gold), 18K (75% gold) or, at best, 22K (92%) that loses most of its value the moment it is purchased. American jewelry is a depreciating asset.
Fine jewelry usually means paying for the brand versus getting real financial value. The majority (99%+) of fine jewelry can be resold at a small fraction of its original price. The only exception to this rule would be an auctioned antique Cartier piece. The reason fine jewelry is expensive is the brands outdated infrastructure: big teams, storefronts, marketing, etc. The focus of investment jewelry is providing the customer with the highest possible metal and product value.
Fine jewelry is marked up significantly (70% up). Investment jewelry is of extreme high quality but the markup is as low as possible so that the investment jewelry becomes a wearable savings account.
Some compare investment jewelry to gold bars. We like the gold bar and investment jewelry comparison as the consumer would see the value link. However, they both serve a different function. Bars cost ~1-5% over gold price and are meant to be stored away. Investment jewelry costs ~25-40% over gold price and is meat to be worn. Unlike gold bars, investment jewelry is a functional investment. The only other functional investment example is a house. Investment jewelry is probably more like real estate than a gold bar. A gold bar is equivalent to buying land, not using it, and waiting for the land to appreciate before selling. Investment jewelry is like buying land, and building a home that you can enjoy every day. The higher investment jewelry markup (compared to bard) is the cost of design and production.
Times are changing. Younger generations prefer fashion brands that offer value, are practical, stand for positive change. Younger generations also like to invest. Fine jewelry is wasteful, outdated and made of low value metals. Sustainable investment jewelry is a new jewelry category that is made for the intelligent, modern day consumer.