Concerned about your economic future? Well, you’re not alone.
Fuel prices are the highest in history, the housing market has bottomed out, (we hope). Credit card debt out of control, paychecks are stagnant, and if you have 401k savings, the waning stock market is taken care of that nicely. Rumor has it that the Europeans are wallpapering their houses with U.S. dollars.
So where’s the silver lining? Precious Metals and Gemstones!
You may have unrealized wealth tucked away in your dresser drawer, most of which has accumulated through the years in the form of Fine Jewelry. Gold or Platinum with Diamonds or Precious stones, received as Anniversary’s, Birthdays or Holiday gifts are often forgotten about soon after the styles have changed. At a time when our personal resources are depleting rapidly, Precious Metals and Diamonds are commanding record high prices.
For example:
A 14k gold necklace that sold for $500 just one year ago, sells for $900 or more today
A one carat round brilliant diamond that sold for $8500 three years ago, sells for $10,500 today.
A 2.00 ct. round brilliant diamond three years ago sold for $27,000 will sell today for $42,000.
Of course, some of your jewelry you would never think of selling, and that’s how heirlooms come about. But lets face it, most of us have jewelry that’s so old and worn out, or the style is so dated, that even our kids don‘t have them. However, you would be surprised how much it’s worth when you gather them up and weigh them on a jewelers scale. Most of it goes the metal refinery for melting into fresh, clean gold.
If you choose not to sell your larger diamonds, and you don’t have an immediate need for the money, it’s not be such a bad idea. In 22 years in the Jewelry industry, I’ve rarely seen quality Diamonds loose value, and then only for a temporary period of time. In fact, since the 1950’s, gem quality Diamonds have doubled in value approximately every 10 years*.
The metals, on the other hand, are much more volatile. They’re value can rise and fall quickly, and right now they are way up. Precious metal prices have never been this high, so if you have old jewelry with tiny stones or no stones at all, it’s probably a good time to cash out and take that long overdue vacation or, lets be honest, we can all find a good use for the money.
If you intend to keep your jewelry, certainly a current appraisal is very, very important. Most insurance companies don’t have time to go through their files to let you know that your 2 ct. Diamond engagement ring, (for example), that you’ve been paying premiums on for ten years, is only insured for about 50% of it’s replacement cost. Ten years ago, the appraisal was probably accurate, but today it’s most likely obsolete. That’s right! If your jewelry is stolen, lost, or your Diamond is chipped, your insurance company is only liable for the old appraisal value, and that’s all you’ll get. In other words, you will not have enough money to replace the jewelry item that you have been paying insurance premiums on for 10 years. To be safe, it’s recommended that jewelry appraisals should be updated about every three years by a qualified appraiser with ample experience in the field, and preferably a G.I.A. Graduate Gemologist degree.
*Past performance cannot predict future results.
Ernest Piscitelli, G.G., C.G.
