Is the idea of ‘jewelry that pays’ real? Can you buy expensive jewelry with hopes of the pieces appreciating, therefore, becoming great investment options for you? And even more importantly, is it possible for you to sell jewelry for more than you bought them for?
Well, the truth is that this is not always the case, but there are jewelry brands and collections that are considered very valuable and worth the money, either as investments or instruments to hold most of your money’s value. And Cartier is one such brand, with purchases of Cartier jewelry often considered a form of investment.
In this article, we’ll take a deeper dive into this to determine if Cartier jewelry is a good investment or not. Investing has to do with putting in money on or for something now, hoping that it will yield a profit or returns after some time.
So, is this what would happen to you if you buy Cartier jewelry now, and are there specific pieces or collections by Cartier that are great investments?
Is Cartier jewelry a good investment?
Cartier was founded in 1847 by Louis-François Cartier. Though it started as a simple jewelry shop, it has always identified itself as a luxury goods firm that deals in some of the most coveted varieties of jewelry and watches.
While it was run as a family business until 1964 when it was purchased by a Swiss firm, Champagnie, Financière Richemont SA. Despite the changes in ownership, the brand has always been dedicated to creating some of the most exquisite pieces of jewelry and also watches.
All these are worn by royalty worldwide, which means that they are costly. But given the luxury status of all their products and the fact that the pieces and the brand are valued highly, it makes sense that buying Cartier is often deemed as an investment.
So, does this mean that Cartier jewelry makes a good investment?
Like Rolex and Patek Phillipe, Cartier ranks high as one of the top-tier brands you would want to invest in. Now, the luxury products by these brand names are not ranked in the same way as the traditional investment tools like bonds or stocks, but Cartier’s jewelry and watches are an ideal investment tool/ instrument.
However, by virtue of being a luxury brand that has stayed in power for a long time and with the authority it commands, it makes sense that investing in Cartier jewelry is worthwhile.
Another way of thinking of Cartier jewelry as an investment would be how they offer many years of enjoyment and how, with proper care, their value will increase exponentially, just like home.
Solid gold is, in itself, a valuable metal whose value appreciates over time.
Though the value of gold jewelry changes every day and the daily value of the metal is determined by its spot price, gold is worth more today than it was worth ten years ago.
So, if you bought a piece of Cartier jewelry 10 years ago, it will be worth significantly more today, which is why gold Cartier jewelry would be a good investment.
Just bear in mind that despite the expected increase in value in the individual jewelry pieces, the initial high price tag of the jewelry also includes the brand-associated costs such as marketing costs, branding, etc.
This is also the reason why even though the resale value of Cartier is high, it is not higher than or even close to the initial buying price of the jewelry.
Why is Cartier jewelry a good investment?
1. The jewelry holds value for long periods
For the rare or limited edition Cartier jewelry and watches often sold at auctions, it has been noted that not one of the auctioned pieces ever sells for less than its original purchase price.
And so, investing in Cartier’s pieces means that you will not lose any money from the investment. And in many cases, the value of the jewelry increases exponentially by the time, particularly for the pieces that debuted in the 70s.
The Cartier Love bracelet, for example, debuted at $250, and it’s now worth at least $6600. So, if you or someone in your life bought the bracelet, then the returns are too good, and you may want to invest more.
2. The value of gold doesn’t fluctuate too much
It would be wise to invest in Cartier jewelry because the jewelry is made of gold, a valuable gemstone whose value doesn’t fluctuate widely but increases very steadily over the years.
A look at the value of gold as of 1975, for example, reveals that gold was valued at $79 per ounce, and it is now valued at about $1153, a whopping increase of 176%, after the increase in the worth of gold is adjusted for inflation.
So, there is no doubt that investing in gold jewelry by Cartier is one of the very best investments that you will make. And with most of Cartier’s pieces made of solid 18K gold that is in itself one of the most valuable types of gold in the market and what is used by Cartier, investing in this type of jewelry would be worth your while.
The details above also point to the fact that gold is a very secure investment compared to other investment instruments like stocks. This investment is secure, and though there are very subtle fluctuations in price, the value of the gold pieces will always go up.
It would be best if you considered buying more Cartier jewelry, and you also observe and learn the market to make sure that you are buying and selling the jewelry at the right time and price. We’ll share tips on investing in Cartier jewelry later in this article.
3. Cartier pieces grow rarer by the day
This is the other notable fact about Cartier – their pieces of jewelry, especially the older pieces or the classics, grow rarer by the day.
This is because Cartier’s pieces are often made in limited numbers, especially for the collections.
There is also the fact that Cartier has been known to buy back their jewelry, meaning that they never flood the market. So, these pieces get to retain their value.
For Cartier’s pieces, there is never glutting of the market with their pieces.
4. Historical Significance
The other factor contributing to Cartier’s brand’s success is the fact that the brand boasts an impressive history, something that makes it worthwhile to be associated with the brand.
Cartier was declared the jeweler for Kings and the King of Jewelers by England’s King Edward VII early in the 1900s. Cartier’s lived up to these high standards set over the years, further contributing to the brand’s high status.
It’s also worth noting that in 1837, the French Maison’s jewelry legacy is woven throughout history, from its inception to date. Cartier started as a small Parisian storefront that grew and slowly established itself as this huge worldwide luxury brand.
This, and the legendary vintage pieces they have come with over the years, have contributed to the success of the brand and the high value of the pieces offered by the brand, not to mention how their pieces retain and gain value for years.
Pros and cons of investing in Cartier jewelry
- The jewelry holds value
- An excellent tool for long term investment
- The jewelry is elegant and sophisticated
- Excellent level of craftsmanship and finishing
- The designs and authentic pieces by Cartier never flood the market
- There is a good variety of jewelry for you to invest in
- The jewelry is costly, and the prices are not attainable or affordable to everyone.
- Many counterfeits on the market
Tips for investing in Cartier jewelry
- Buy/ sell at the right time
Since Cartier’s pieces are made of solid 18k gold, which means that they are affected by the world market prices of gold, you may want to time your purchase. The best time to buy the gold Cartier jewelry is when the gold prices are lower.
Although this may not be obvious when you don’t check gold prices frequently, you will learn what to look for after some weeks or an even shorter period. Then, hold the pieces for some time – this is where the real test lies, and sell it after the prices go up. In some cases, you have to wait for at least 10 years for the prices to go up.
If you are investing in Cartier jewelry as part of your long-term investment strategy, you may want to get the jewelry appraised as soon as you’ve purchased it to be aware of the value of your portfolio.
- Shop from a trusted retailer
We recommend getting your Cartier jewelry from Cartier, and if you cannot do that, shop from a verified Cartier dealer. These dealers use the same product codes for their jewelry pieces, so verifying the pieces is easy. That said, your best bet is to buy the jewelry from Cartier.
Not sure if you should buy Cartier’s jewelry? We think you should, especially if you are looking for a long-term investment option.
Tiger is a fashion&jewelry lover. He is also a fashion jewelry manufacturer that help thousands of small business to grow and also do business with some big fashion jewelry brands. He is a truly metal expert and he will share some information you are looking for.