Splurge. Antiques are forever

Few things have stood the test of time the way traditional jewellery has. As the representation of the craftsmanship of a bygone era, or simply as a beautiful piece of art, jewellery from decades ago has a timeless appeal.

For those looking to diversify their investments, it’s an interesting option that comes with many advantages, including ease of purchase and tangible appreciation.

While regular gold jewellery is valued based on its grammage, antique jewellery carries a value that goes far beyond its mere gold content.

The term ‘antique jewellery’ has different connotations across countries and cultures, says David Warren, the senior international jewellery director at Christie’s, adding that when it comes to European jewellery, only pieces that are 100 years old or even more ancient, fall into the category of ‘antique’.

In India, on the other, anything that dates between 50 to 70 years ago can be labelled as ‘antique’, making the spectrum wider.

Princeson Jose, MD and Chairman of Prince Jewellery, which has been in the business for 81 years now, believes that the popularity of his annual exhibition of antique pieces — called Ancient Secrets — for the last 15 years is proof that antique jewellery can stand the test of time.

As the scarcity of these antique pieces increases, says Jose, their demand rises and so do their prices. “Usually we expect about an 85 per cent return on antiques we sell, but the demand is so high that we are willing to pay more than our margin to customers who wish to sell the pieces back to us,” he says.

But returns from antique jewellery can take a while to materialise. “Like any share portfolio, the trick is to have enough capital to wade through the storm, and not have to compromise when the market is weak. If you look at the general graph of diamond prices, there will be tiny crests and troughs, but the overall trend would be upwards. The key is to think long term, and wait anywhere between five and 10 years to see a significant increase in price,” says Warren.

There are antiques and then there are excellent reproductions. So, while investing in antique jewellery, first find a reliable expert who can certify it for you. “Take advice from someone in the know because there are extremely well-made reproductions going around,” cautions Warren. Use your instincts when looking at a piece, and question everything. Think of it as if you are going to have to prove it’s an antique, suggests Warren.

“The patination of the gold or silver, the tarnish should be like that of an aged piece. The cut of the stone matters too. The cutting styles for diamonds have changed over the years; you won’t find antiques with a brilliant cut stone.”

As long as it is a genuine, numbered piece with a signature — original case is a bonus — it is a safe investment. David Bennet, Chairman of Sotheby’s Switzerland and Chairman of Sotheby’s Jewellery Division for Europe and the Middle East, adds a word of caution: “Jewellery often tends to be altered or remodelled over the years in line with changing tastes. Be sure to check for signs that might show the original design has been changed.” Then comes the wearability, and all the experts agree on this. “As a rule, buy something you like,” advises Bennet.

“Jewellery is very personal and you should feel a connection with the item.”

While pieces like earrings and pendants may do well right now, a brooch would find fewer takers, says David Warren. In India, Princeson James gives the example of the rokkai, a traditional hair ornament that might not be too popular now.

What decides the value of an antique piece if not its gold content? Obviously, its age. The older a piece of jewellery, the more it will fetch in value. When it comes to identifying the era of its manufacture and its authenticity, Princeson says only a trained eye can do justice.

“As a third-generation jeweller, I have trained my eyes to figuring out vintage on examining the piece.”

Provenance, or record of ownership, is another factor that greatly influences the price of an antique piece. “There is very solid demand for antique jewels with noble provenance,” agrees David Bennet from Sothebys.

Preeta Agarwal, a jewellery consultant based in Delhi suggests that if pieces have a story or a lineage to support them, it adds to the aura and value.

Add a popular celebrity name to the noble provenance and you have a certain best-seller on your hands. A prime example would be the Sotheby’s auction last year of actress Gina Lollobrigida’s jewels, where a pair of natural pearl and diamond earrings was sold for $2.39 million.

These earrings were antiques belonging to the House of Hasburg, but by virtue of being owned by the renowned actress, it sold for $2.39 million, creating a world record in auction prices.

Another instance would be the Le Peregrina, a 16th century pear-shaped pearl that once belonged to King Philip II of Spain and Queen Mary I.

It ended up in the collection of famed actress Elizabeth Taylor set in a pearl necklace by Cartier. The piece almost tripled its pre-auction estimate and sold for $11.8 million. Closer to home, a recent Sotheby’s Fine Jewels auction in July featured pieces from the collection of Maharani Sita Devi Sahib of Baroda and a turquoise and diamond ring made by Van Cleef & Arpels circa 1960s, sold for £23,750.

David Warren from Christie’s recommends the classic Art Deco style pieces from the 1920s for those looking to diversify.

“That decade was the golden period for Cartier and pieces like the Tutti Frutti collection and Egyptian-themed ones have only gone up in value,” says David. Mughal 17th century jewels as well, from the Jehangir period, are a strong area with many collectible pieces, he adds.

“We have also seen great enthusiasm for natural pearls in 19th-century settings,” says David Bennett from Sotheby’s, adding that it’s the highest quality pieces and extraordinary gemstones that are in demand. Locally, antique pieces find more takers among brides, who prefer the traditional look for weddings.

While Princeson James says that the traditional Chettinad style is most popular in India, Preeta Agarwal believes the south Indian Valanda style flat diamonds and regal kundan-polki are in great demand.

While it might be easier to buy from a retailer, both Preeta Agarwal and David Warren believe that going through a broker or public auctions is the best option. “There are undoubtedly some great opportunities in antique jewellery,” says Warren, “but it is wise to invest in what you know best.”