- For genuine gold and natural or lab diamonds, avoid mall chain stores. Their products are often mass produced with very little precious metal and very small, low-quality stones. The staff are not generally knowledgeable (and are unfortunately sometimes rather pushy), and would probably not even be able to tell you the grade of the diamond or the weight of the gold in an item.
- Appraisal values are often inflated. You will not get this back from insurance or on resale. For gold items, you will get back just under the melt value, if that.
- Some designer brands have good resale value, others do not. Make sure you know the resale value if you plan on selling the item one day. If you love it and will keep it forever, buy it. But don’t pay over the odds on something you regard as an investment. A brand that is hot today could be terminally uncool in two years, and your spendy item will be worth the scrap value of the metal.
- Gold will always have a value set by the market. The price of gold goes up during unstable geo-political periods. It has more than doubled in two years. This makes it a good investment if you bought a while ago, but very pricey if you are buying today.
- Diamonds on the other hand, are dropping in value. If you have a large natural (mined) stone with good C-values (cut, clarity, carat weight and colour), you will still get a decent price for it. But laboratory-created diamonds are flooding the market at low prices at the moment, and that has let to the price of both natural and laboratory diamonds to fall. Don’t be fooled into thinking a diamond – either lab or natural – is an investment nowadays. The perceived value of diamonds was always as a result of successful marketing campaigns (I’m looking at you, De Beers).
- The best place to find precious metals and stones is at pawn shops. They sell at melt price plus their markup. I always recommend buying things such as chains here because their price will be the lowest.
- Make sure to have the clasps and settings of your precious jewellery checked regularly. They do wear over time. Bear in mind that if you have gold polished, you will lose a tiny bit of it in the process.
- If you have inherited jewellery that is worn or not your style, or if you have jewellery that is broken/doesn’t fit etc, you can have it reworked into something else by a reputable jeweller.
- Don’t discount the beauty of thrifted costume jewellery. You can always find pretty and unusual costume jewelry in thrift or antique stores. You may have to look for a while, but they can become a staple of your jewellery wardrobe.
If you would like to build a jewellery wardrobe over time I would suggest some classic pieces in gold or sterling silver. You can ask for contributions towards your collection for birthdays and Christmas. Perhaps gift vouchers or a group gift?
- Studs
- Hoops
- Heavy chain
- Fine chain
- Chain or paperclip bracelet/bangle
- Pearl studs
- Pearl necklace
- Gold ring for middle finger
- Pinky finger
…and then maybe some more punchy pieces in cheaper costume jewellery if you would like something heavier or more dramatic to wear less regularly.