Why jewellery remains a shining investment during troubled times – in the year Drake paid US$1 million for Tupac Shakur’s crown ring

Aug 3 , 2024

Jewellery was the second-highest performer on the latest Knight Frank Luxury Investment Index, with period pieces, coloured gemstones and single-owner collections the strongest subsectors. Photo: EPA-EFE

Jewellery came second only to art in The Knight Frank Luxury Investment Index, which unusually dipped slightly into negative territory in 2023

Period pieces, coloured gemstones and single-owner collections are the strongest subsectors, with Tupac Shakur’s crown ring achieving 3 times its estimate at a Sotheby’s auction

The jewellery market provided a rare bright spot in 2023 even as most luxury investments showed signs of weakening.

According to the latest Knight Frank Luxury Investment Index (KFLII), jewellery stood out as the second-highest-performing asset class for the year, recording annual growth of 8 per cent and only trailing art.

Jewellery’s value is, to an extent, an inherent one based on the precious metals and stones incorporated into pieces.

This “tutti-frutti” set from Cartier – including ear clips and a necklace with a 50.44-carat emerald, a 10.15-carat ruby and two emerald drops weighing 71.22 carats – sold at Sotheby’s Hong Kong for HK$21 million (US$2.69 million) in April 2023. Photo: Handout

“This makes it a great investment during periods of economic uncertainty,” said Andrew Shirley, partner, and head of rural and luxury research at Knight Frank.

The KFLII, which tracks price movements across 10 key asset classes, dipped slightly into negative territory for only the second time ever as the luxury market cooled from record highs.

But demand for jewellery remained robust for iconic period pieces, uniquely coloured gemstones and single-owner collections.

The jewellery market is built on rare pieces featuring dazzling, coloured gemstones and precious metals, such as this Ronald Abram 17.07-carat emerald-cut Kashmir sapphire ring. Photo: Handout

“Not all categories of the jewellery market are under pressure,” said Jonathan Abram, brand director at jewellery house Ronald Abram.

“The collectable rare jewels we specialise in have consistently held their value.”

Collectors are gravitating towards natural-coloured untreated gemstones, such as Burmese rubies, Kashmir sapphires and Colombian emeralds, according to Abram. There is also growing interest in estate jewellery, particularly signed pieces from well-known international jewellers.