Ever since the global financial crisis, investors have been looking for new ways to safeguard their wealth. They have poured money into traditionally 'safe' commodities such as gold, which reached a (non-inflation-adjusted) high of US$1,500 per ounce this month. Concomitantly, there has been a growing interest in fine jewellery and stones, viewed by many experts as a smart long-term investment.
'The beauty with jewellery is that it can fulfil both functions as a wearable piece and as an investment. To increase in value it has to be of good quality, preferably signed, of an original design and wearable,' says Vickie Sek, director of jewellery and jadeite for Christie's Hong Kong.
Business executive Rosana Li has collected and sold jewellery for more than 20 years. The former property agent began buying rare stones such as blue, red and yellow diamonds 10 years ago, and has sold many for a handsome profit, which she has then reinvested successfully in property.
'In the beginning I purchased fun pieces for decoration,' she says. 'Then I wanted to know more and spoke to jewellers about it as an investment. I had a certain budget for pieces I wanted to wear for decoration - around HK$200,000 - but it was considerably more when it came to big investment pieces as I wanted a bigger return.'
As with any new investment vehicle, experts suggest that buyers start out with a sizeable but realistic budget. Terry Chu, deputy head of the jewellery department at Sotheby's Hong Kong, recommends doing plenty of research first.
'Visit jewellery shops and auction previews to get an idea of what stones or pieces you are looking for, price level, market demand and your target,' she says.
