A jewelry chain that has left the Russian market. Investing in jewelry is beautiful, but not profitable. The birth of a new decoration

Exhibitions per year.

The largest of them is considered a meeting in Hong Kong. It gathers about 4000 participants. They are representatives of almost 50 states. What attracts manufacturers and connoisseurs of jewelry jewelry exhibition what is this phenomenon. Worth sorting out.

Jewelry exhibition - what is it?

If we go into terminology, then jewelry exhibition- museum event. It only involves showing the jewels and getting to know their history. There is no opportunity to buy, learn about market trends, meet with its intermediaries, use additional services of the jewelry industry.

All this can be done on jewelry exhibition. The event is industry-specific, that is, it gathers all the subjects of the industry on one platform. These include producers, intermediaries and consumers. You can look, and buy, and look for business partners, and find out the list of new products, production, and services.

The need for trade and industrial exhibitions appeared with the advent of the era of mass consumption. Citizens do not have time to keep track of all the abundance of goods and services.

Instead of bringing together disparate information, looking for it on their own, consumers come to industry gatherings. Everything, as they say, in one place.

In order to focus on the main focus of the exhibition, this word is added: - sale, commercial and industrial, fair. Such statements are acceptable, but jewelry exhibition 2014- a term that does not reflect the whole essence of the event.

Jewelry exhibitions with a worldwide reputation

All aspects of the jewelry business are represented by Inter Jeweler. The exhibition has equipment, components, and, of course, finished jewelry. Get acquainted with them, about 40,000 arrive annually. The international meeting is traditionally held in the city of Sochi. Inter Jeweler was launched in 19994.

Jewelry exhibition in Moscow deserves special attention if it is "Junwex". The meeting is held by the Restex-Junvex complex, which has been organizing gatherings for more than 20 years.

On account of the organization of 7 Russian exhibitions. The largest takes place in the capital in the month of December. It has a thousand participating companies. The number of presented products exceeds 500 million copies.

Held jewelry exhibition at the All-Russian Exhibition Center. This is the name of the exhibition complex in the North-East of Moscow. The request is also correct. jewelry exhibition at VDNKh". This is the popular name of the VVC district.

Before Moscow, preliminary meetings are held, for example, Juntex jewelry exhibition in Yekaterinburg or St. Petersburg. All jewelry enterprises are represented at Junwex. Jewelry from their main collections is sold at no extra charge, at the factory. It attracts both wholesale and retail customers.

Outside, the American exhibitions "JA New York Summer Show", "International Jewelry Fair / General Merchandise Show" and "AGTA GemFair Tucson" rumble. The first is held in the summer, the second - in the spring, the third - in the winter.

Specialization of meetings in the USA -. America is their main consumer on the planet. A year in the states they buy products with, on average, 14-15 billion dollars.

About the world's largest exhibition in Hong Kong was indicated. The event is officially called the Hong Kong International Jewely Manufacturers Show. In addition, they represent premium class watches, parts for jewelry production, stones, equipment and even packaging materials. will take place jewelry exhibition in October or November.

A large-scale exhibition specialized in taking place in. "BaselWorld" is a landmark of the city of Basel. In addition, they like to bring exclusive ones to it.

Waste goods at the meeting can not be found. The same can be said about the Vicenzaoro Choice event. It's Italian jewelry exhibition. September, January and June are the months of its holding.

How jewelry exhibitions are distributed on a global scale

The distribution of exhibitions and the transition of the palm among them is influenced by the economic situation in the world. Some parts of it are in a state of economic crisis.

In this case, manufacturers from disadvantaged countries rush to export, exporting products that are not in demand at home to economically stable states at the moment. Of course, jewelry exhibitions help to promote the goods. First of all, foreign manufacturers are striving to get into them.

Influences the distribution of jewelry exhibitions and own mining and production within a particular country. Regions rich in deposits of stones and metals, of course, are actively engaged in manufacturing and holding exhibitions. In areas where there is no raw material, production suffers and, of course, exhibitions are held rarely and not on a large scale.

The popularity of jewelry in Russia is growing every day, acquiring a spontaneous character. Such dynamics in the near future will be able to break the record of annual increase in demand for jewelry, which is traditionally 25% per year.

However, consumers should take into account that precious jewelry is not an attractive investment object, yielding in many respects to bank gold bars. Often, the after-sales value of jewelry is equated only with the cost of precious scrap.

Gold anchor chain

An unusual offer is made to visitors by the guides of one of the largest jewelry factories in Russia "Adamas". Everyone is invited to test their strength and try to break a gold chain 0.3 mm thick. Not everyone decides to ruin a jewel. But an experimental experiment proves that an adult healthy man can break a chain of such thickness. After establishing the result, the jewel is safely sent for remelting.

Based on the stories of the guides, the greater the thickness of the chain, the greater the weight and the force applied to it, it can withstand. Amazingly, once at an exhibition of gold items, in order to demonstrate the quality of their products, the employees of the Adamas plant managed to stretch the “nine” car on a long chain 0.8 mm thick.

This is not the only record of the plant. In honor of the celebration of the 850th anniversary of Moscow, a chain 850 m long was made in the chain knitting shop. It turns out that there is nothing difficult in this, because while the chain is being woven by the machine, it is immediately wound on a huge coil. The main problem in setting the record was the transportation of the product. The difficulty was to move the chain without tangling it.

Of great interest is also the pattern of the manufactured chain. The anchor pattern is obtained from round links, and the shell pattern is obtained from oval curved elements. The pattern is formed by a special program installed on Italian machines. It should be noted that all the products of the plant are produced on imported equipment, the technological characteristics of which contain the know-how of the enterprise, therefore they are kept in the strictest confidence.

Purity of gold

A more difficult task is offered to factory visitors in the storage of raw materials. Anyone can try to pick up a real gold bar. It turns out that a piece of pure gold weighing 12 kg can not be torn off the table with one hand by an ordinary person. Fortunately, the technology of jewelry production does not provide for such efforts on the part of workers.

For the manufacture of products, a gold ingot is placed in a planer, where small curls are separated from it. In order to prevent future jewelry from being scratched and worn out, other alloy components are added to pure gold in a strict proportion, on which the sample and color of the product depend. The resulting composition is placed first in one and then in another special furnace, in which a new ingot is formed. From this piece of metal, a wire with a diameter of 0.2 to 1.8 mm is drawn, from which chain links are subsequently obtained.

It should be noted that the technology of manufacturing gold chains at the plant combines the principles of mechanical engineering and metallurgy.

The birth of a new decoration

Depending on the complexity of the material processing and the pattern of the pattern, the creation of jewelry from the moment the ingot is received to the shipment of the finished product to the warehouse takes from one to two months. The result is chains and bracelets weighing 0.3-70 g.

In the days of crimson jackets, the weight of some chains could reach from 100 to 200 g. These types of links, like other jewelry, had to be assembled by hand.
Nowadays, the creation of a jewelry masterpiece requires well-functioning work at every stage. First, the designers draw up a sketch of the future product, on the basis of which the master fashion designers make the first sample of the future jewelry from brass or silver. The resulting prototype is of great value, since in the event of a successful sale of the first batch of jewelry, the sample will become a standard, on the basis of which mass production will be launched.

Then the prototype is placed on a special leg - sprue and sent to the rubber mold shop. There it is lowered into a block of special soft rubber, similar to plasticine. Under the pressure of the press, the rubber is vulcanized, and the master receives a rubber mold with a prototype enclosed inside. Then comes one of the most crucial moments. The rubber mold specialist must very carefully cut the resulting product in half in order to extract the sample from it.

At the next stage, melted wax is poured into the resulting rubber matrix with the help of special equipment, as a result of which a certain form of decoration is obtained, for example, a figure of Christ for crosses. Using the sprue melting method, the jeweler places each figurine on a wax cylinder, which is sent to the foundry, where it is poured with a special solution based on finely dispersed gypsum.

Further transformations are hidden from human eyes. The gypsum mold is transferred to the oven and subjected to heat treatment (800 degrees). After the wax has completely flowed out, an alloy of gold is poured into the freed cooled cavities. After the metal hardens, the gypsum flask is gently washed away with a powerful jet of water. In order not to damage the gold parts, the plaster mold should never be broken or attempted to be broken mechanically.

To assemble the finished product from the received gold parts, special tools are used: a hair of gold solder and a propane torch tongue. In this case, the master must have keen eyesight in order to complete the assembly correctly.

Not all gold glitters

It is worth noting that after the finished product is separated from the mold, raw gold seems dull and nondescript. In order for the jewelry to shine, it still has to undergo special processing.

Products are first placed in a mixer with hard plastic granules, then with sand from crushed walnut shells. Then washed and polished with special rotating rollers.

Work path strewn with stones

An unforgettable impression is made by the decoration of the product with precious stones. Using a 6x loupe, the craftsman places tiny stones with extreme precision into the prepared holes, then folds the microscopic burrs around to keep the stone firmly in place. All operations are performed manually and require special concentration and patience. In one shift, the master can process from 3 to 4 thousand precious stones.

Despite the widespread stereotype that the female sex is more predisposed to petty and routine work, it is often men who become jewelers.

So that gold does not settle in your pockets

Having once visited a jewelry factory, one involuntarily thinks about how employees avoid the temptation to take gold with them, and the management manages to control the theft of property.

Adamas managers shared a new method to avoid theft in production. Instead of forcing workers to undress before entering and leaving production, as was the case in Soviet times, the plant management keeps a record of every gram of jewelry issued against signature.

At the end of the work shift, the employee must return the same amount of gold and stones by weight as he was given at the beginning of the work day. This allows the worker to move freely around the production shops, having jewelry with them. At first glance, gold in an unsightly plastic bowl in the hands of one of the employees looks very funny.

New technologies of ancient craft

About two years ago, the plant introduced a new rhodium plating technology, based on which, using electrochemical methods, jewelry is coated with rhodium, a precious metal from the platinoids group. This technology allows you to increase the strength of the product and give it a snow-white sheen.

A few years ago, buyers did not like this innovation, since the jewelry after passing through the rhodium was similar to ordinary jewelry. The remnants of the Soviet past, when a person wanted everyone to know that he was wearing gold, had an effect. According to the president of one of the largest retail chains "Center Jeweler", today's young people are more loyal to innovations and put the quality of the product, rather than public opinion, at the forefront.

golden math

According to the Russian Guild of Jewelers, the income from the retail sale of precious products in the Russian Federation increases by 20-25% annually. The world sales volume in monetary terms is more than 100 billion dollars.

Analysts note that the Russian jewelry market does not have a clear consolidation. The total number of registered enterprises operating in the jewelry industry is about 25,000.

According to the study, this area has a pronounced gender identity of clients. About 70% of buyers are women, and the remaining 30% are men who purchase jewelry for their companions.

In addition, the demand for jewelry is seasonal. The most demanded gold products become during the holidays (New Year, Valentine's Day, International Women's Day). Demand for wedding rings, for example, increases during the wedding season (spring and autumn).

Experts also note that when buying jewelry, customers are most often guided by emotions, so it is very difficult to predict the next impulsive increase in demand.

According to a sociological survey conducted among Russians, jewelry took the fifth position in the top gifts after souvenirs, spirits, toys and perfumes. It is noteworthy that precious jewelry has overtaken mobile phones and various gadgets.

At the same time, rings and earrings made of precious metals (22% and 18% of the total demand) became the most demanded, in comparison with other types of jewelry.

Demand dynamics

According to the famous Italian jeweler Paola Valentini, the jewelry industry is subject to a certain cyclicality. The so-called macro-trends have a period of about 30 years, and micro-trends - about 3 years.

On the example of the Russian market, the macro trend can be seen in the fall in demand for brooches, which have become less popular. And microtrends, which, due to their short duration, are easier to notice, can be traced in a drop in demand for black diamonds. The popularity of this type of stones appeared during the 1990s among criminal gangs and lasted about 3-4 years. Seals with black diamonds were the hallmark of one of the bandit groups in the Moscow region. This sign became the fatal mark of local authorities, because of which they were easily calculated by enemies. After the death of members of the group, the fashion for black diamonds quickly disappeared.

Precious metals are always in fashion

Changes in demand over time have also affected precious metals. For example, in the early 1990s, items made of gold 585, which had a red tint, were especially popular in Russia. Over time, the Russian consumer switched to the yellow foreign metal. And recently, the country has been overwhelmed by the fashion for white gold jewelry.

It is also noteworthy that platinum and palladium are still less in demand for the Russian consumer. Only two Russian jewelry factories in Krasnoyarsk and Yekaterinburg are engaged in the production of items from these metals. At the same time, there are certain problems with observance of the rules for their probing and branding.

A girl's best friend isn't just diamonds

According to the study, diamonds traditionally remain the most sought-after gemstone, accounting for a third of the total jewelry industry sales.

Recently, however, in the design of products, jewelers have increasingly begun to use a large palette of stones, including aquamarines, garnets, topazes, corals, etc.
Jewelry with rubies of saturated colors is also gaining great popularity.

Jewelry geography

Most jewelry factories in Russia use precious stones from different parts of the world in the manufacture of jewelry. At the same time, many foreign jewelers prefer to work with Yakut diamonds.

Despite the annual increase in demand for foreign jewelry, the import of finished jewelry occupies a small share of the total Russian jewelry market.
It should be noted that the Russian consumer prefers domestic products. Therefore, taking advantage of this, some jewelry factories pass off foreign raw materials from which their products are made as domestic.

Foreign curiosities

The Russian Jewelry Network agency provided data that in 2006 Russia sold 1.5 million imported jewelry. This figure can be compared with the dynamics of Russian jewelry production, but it should be taken into account that Russian jewelry crumbs.

Russians are actively buying gold jewelry from advertised Brazil, bright Thai products with colorful gems, prestigious designer beauties from Italy, as well as delights from world-famous houses - Tiffany, Van Cleef, Cartier. The main import supplier is Italy. Almost fifty percent of imported "overseas" products are made in Italy, and this is about 5 tons of various jewelry. Second place was shared by Thailand and Türkiye. European manufacturers of the jewelry industry enter the Russian market legally and officially, while Asian factories fill the shelves with their products, sending them to the country in bags of unknown shuttles. Analysts report that the shady jewelry market has already outperformed legal imports by 4%, as seen in customs statistics.

Strict quality control is the choice of Russians

But the East does not influence the domestic market of jewelry innovations too much either. Most of the inhabitants of Russia chooses domestic jewelry. About 70% of Russians trust the manufacturers of "jewelry" from Russia. It is known that the end buyer is not interested in the names of manufacturers in 50% of cases. Experts expressed the opinion that this situation is due to the faith of sellers not in the conscientiousness of compatriot factories, but in the correctness of the state control over the Russian gold turnover. Expert Sergey Alkhazov said that only in Russia the assay supervision establishes the mark 585 on a ring or other product only in the case when the gold content is several units higher, while the Italians put 585 as a conditional figure. You can buy an Italian curiosity with an honorary mark of 585, and get a thing with a real gold content, which corresponds to 500 fineness at best. Alkhazov also warned that the quality of jewelry from other countries cannot be criticized at all, very often even a stone in a piece of jewelry turns out to be half-glass.

Abroad, as experts say, the quality of the product is entirely the responsibility of the seller. In our country, any scams with precious metals and expensive stones entail criminal liability, which the manufacturer ultimately bears. The only guarantee of the quality of foreign jewelry is the well-known name of the seller. It is worth noting that prices in boutiques with a high level, such as Bvlgary, are appropriate.

Tricks of Russian factories

Thanks to the good attitude of buyers, modern Russian factories in every possible way allow some production tricks. They use a tolling scheme, which is currently allowed by law. Domestic jewelers export part of their raw materials to Asian countries, use the cheap labor of partner firms there, and then transport finished products to Russia. Subsequently, such a product is presented to Russian consumers as their own, and absolutely legally. It is almost impossible to control the scale of the above phenomenon.

Russian consumers also have their own distinctive features. Compatriots have a habit of collecting a certain set of jewelry, and ladies from the West buy earrings that they just like, without thinking or worrying that they don’t have a suitable necklace in stock. But the dominant global trend has already reached Russia. And the point here is not in brands and predilections, but in attitude. Previously, jewelry was a real treasure, they were passed from grandmother to granddaughter. Now jewelry is an ordinary accessory. A jewel that belongs to the mass market segment does not make any investment sense.

The goal is beauty!

During the Soviet Union, buying a piece of jewelry was considered a fairly serious financial investment. An expensive brooch or a massive “engagement ring” belonging to a citizen was at the same time considered by law to be part of the “gold and foreign exchange fund” of a considerable country. In practice, as Sergei Alkhazov explained, this signified the jewel's enduring liquidity. A person realized that when buying a product made of gold, he would sell it at a higher price in six months. Often, jewelry was in short supply.

The times of the USSR have passed, and the prices for precious metals have only grown. Now only 9% of buyers of gold goods consider such a purchase a profitable investment.

Today, it is possible to return a small part of the funds that were invested in jewelry in acquisitive state offices. In such state structures, jewelry is accepted at the price of precious metal scrap. The state structure has no right to refuse a request for acceptance of a product. A little more expensive are willing to redeem good looking rings in thrift stores. There are such stores in large jewelry chains. A merchandiser evaluates a used product, puts it up for sale at a lower price than new jewelry. The owner of the ring can oppose the opinion of the merchandiser, demand an increase in the price, pay the store the cost of storing products and wait for the sale of his property.

Pawnshops traditionally value everything they bring in a penny. They, in fact, do not need the goods, it is a safety net that they will return the borrowed money with considerable interest.

If we compare the acquisition of jewelry not with existing investment instruments, but with some kind of consumer goods, then the picture is not at all depressing. After a year, a gold ring retains a decent supply of liquidity, which is incomparable with a shabby mobile phone of an outdated model or a worn jacket.

How not to miscalculate with the investment of funds?

A very expensive piece of jewelry is an excellent investment. Such products are made by both global and domestic brands that specialize in exclusivity. These organizations include the firm "Sirin", the jewelry house of Marina Tsoi. Back in 1998, talented and original jewelry artists Maxim Voznesensky and Irina Dorofeeva invented a unique way of presenting precious jewelry - a kind of theater. Their idea worked great. At the moment, it is the only domestic manufacturing company that competes with global brands at the International Exhibition in Basel. Nine years of work by the innovators of the Jewelery Theater brought 10 amazing collections to the world. Many decorations are handmade, some are made in a single copy.

The production of exclusive jewelry is very different from mass production, even high-level ones. The jeweler receives a detailed sketch of the model from the designer, creates an even more detailed drawing himself, and only then begins to work. 750 gold is selected for the blank, and then the master cuts out all unnecessary details. No forms apply. One elite model is created from two weeks to several months.

Jewelry is a beautiful investment!

Jeweler artist Mikhail Voznesensky argues that there are three components that make a piece of jewelry a worthy investment: an expensive high-quality stone, a professional-level craft, and a worthy design. Voznesensky said that there have already been a number of cases when the production of the Jewelry Theater was resold at a price much higher than the original price. In terms of investment, it is more profitable to invest in a large diamond than in any artistic sophistication. Only now, domestic manufacturers do not offer to buy “just a diamond”, but only a diamond in a setting. However, if the price limits of the stone are very large, this cut does not matter much.

Decreasing since 2015 due to declining household incomes, low consumer activity and propensity to save money against the backdrop of currency fluctuations, as well as pronounced competition from electronics (for example, young people increasingly prefer to buy smartphones instead of jewelry) and perfumery and cosmetic products ( jewelry is less often perceived as an expensive profitable investment).

According to a study by websitessia, the turnover of jewelry under the brands MYuZ, Pandora, Tous and Swarowski in 2017 amounted to about 19.2 billion rubles. Of these, the largest share falls on MJZ and Pandora (49% and 42%). The turnover of the Tous brand in 2017 was estimated at the level of 1 billion rubles, which amounted to about 5.6% of the total turnover of the above brands. The Tous brand is most widely represented in the cities of the Southern Federal District: Krasnodar, Sochi, Anapa and Rostov-on-Don.

Volume and dynamics of the Russian jewelry market

The volume of jewelry consumption in 2017 amounted to 224.7 tons, remaining at the level of 2016. Demand for jewelry has been declining since 2015, which is associated with a decrease in household income and a decrease in the target audience (young people under 30 are practically not interested in jewelry, preferring to buy smartphones, tablets and other electronics). In recent years, the attitude towards jewelry has changed significantly: the population perceives them less and less as a luxury item or an expensive piece of jewelry and considers them, first of all, as accessories that should emphasize the individuality and style of the owner. For this reason, price is a decisive factor in the choice of jewelry, as a result of which the demand for silver jewelry is growing and the consumption of gold jewelry is decreasing.

In the medium term, jewelry consumption is expected to decline by 1-2% annually due to changing consumer preferences, an increase in demand for alternative and often more affordable goods (perfumes and cosmetics, costume jewelry, non-standard jewelry made from base metals and other materials).

The volume of consumption of jewelry in the Russian Federation in 2013-2017 and forecast for 2018-2025, tons (under the base development scenario)

The structure of the jewelry market: production, export, import, consumption

The jewelry market is dominated by Russian-made products: in 2016, it accounted for about 75.9%, at the end of 2017, its share increased to 76.9%, which is associated with a reduction in imports, primarily from Armenia.

Dynamics and structure of the jewelry market in 2013-2017 and forecast until 2025, tons (under the base development scenario)

Structure of consumption by federal districts of the Russian Federation

At the end of 2017, the Central Federal District remains the largest consumer of jewelry with a share of 28.2% in physical terms. The second place with a share of 16.7% is occupied by the North Caucasian Federal District, the third - by the Southern Federal District (11.9%).

Structure of jewelry consumption by federal districts in 2013 - 2017, in physical terms

Jewelry Market: Development Forecast

It is expected that in the medium term, jewelry consumption will decline by 1-2% annually, mainly due to a decrease in the number of potential buyers in the face of changing consumer preferences (young people under 30 in most cases do not consider buying jewelry, preferring to spend money on gadgets, travel or inexpensive accessories).

Wealthy Russians have always looked at buying jewelry as one of the most effective ways to invest money. This type of investment, of course, is inferior in popularity to buying real estate and bank deposits, but the interest in jewelry in Russia is so great that in 2016 it entered the top 10 countries with the highest demand for gold jewelry. According to Irina Stepanova, executive director of Sotheby's in Russia, in recent years, the interest in expensive jewelry and rare diamonds is partly due to the turbulence in the economy.

Invest in jewelry, of course, not only in Russia. Along with other luxury items (antique furniture, Chinese ceramics, collectible watches, vintage cars, etc.), jewelry is included in the Knight Frank Luxury Index. Over the past year, they have risen in price by 4%, over 5 years - by 49%, over 10 years - by 142%. In Knight Frank's top ten luxury goods, jewels are second only to classic cars in terms of long-term investment returns, and .

What is easier to earn?

Not all jewelry is suitable for investment. Mass-produced products are usually not suitable for these purposes, it makes sense to invest only in products that meet a number of criteria. When buying jewelry, experienced investors are guided by rules that are approximately the same as when buying art. Not all paintings will rise in price in the future, but you can safely invest in the works of top artists and universally recognized masterpieces.

Experts argue that ordinary jewelry designed for the mass buyer is not an investment tool. The products that fill the windows of chain jewelry stores are sold at a very high mark-up, not to mention taxation. According to Andrey Kochetkov, an analyst at Otkritie Broker, such jewelry is 2-3 times more expensive than the precious metal and precious stones from which they are made. After the purchase, the jewelry immediately loses its value, because during resale it will not be possible to compensate for various extra charges - they will only look at the cost of the material and artistic value, if any.

Only certain categories of jewelry can grow in price in the future. According to the General Director of the Guild of Jewelers of Russia Eduard Utkin, these include:

1. Jewels adorned with large natural stones. It makes sense to invest in them, since stones are becoming more expensive much faster than precious metals. Gemstones over 1 carat and semiprecious stones over 5 carats are considered large.
2. The second category is more difficult. Only a specialist will be able to assess the complexity of making a piece of jewelry, determine the potential for an increase in the price of a product that is a historical value or a piece of contemporary art.

In any case, such investments involve expenses estimated in hundreds of thousands of rubles. If we are talking about a product of the 21st century, then perhaps it will be appreciated only in 20-30 years. It is rare for anyone to make quick money in this area.

According to Eldiyar Muratov, president of the Singapore Castle Family office, investing in jewelry is a privilege of wealthy investors. This is done only by the wealthy public, which is not concerned with momentary profit, but expects to earn good money in the future. By rich investors, Eldiyar Muratov means people who manage $5 million or more of their own funds.

However, not all experts agree with Eldiyar Muratov. For example, Andrey Kochetkov claims that it is possible to make money on relatively inexpensive products intended for the mass consumer. One option involves a train to the UAE. In the Emirates, there is always a wide range of gold jewelry on sale, which is only 10–15% more expensive than scrap gold by weight. Such an investment can bring profit quite quickly.

Advantages and disadvantages

It is not for nothing that jewelry has been used for many centuries as a tool for savings. The price for them rarely shows a sharp increase, but almost never falls. Usually, after the purchase, it remains constant for some time, and then gradually grows depending on the dynamics of prices for stones and precious metals, as well as on how interesting the product is to collectors. Losing money on such investments is almost impossible. Another plus is the high capital intensity of assets. Expensive jewelry solves the problem of concentrating a large amount of money in a small object. A safe the size of a shoe box can store a huge fortune.

The main disadvantages: low market liquidity, long investment horizon, entry threshold that is unbearably high for many. The optimal investment horizon is approximately the same as at 20–30 years. In order to have enough funds to purchase a suitable product at an auction, it is desirable to have $300-400 thousand. It is difficult to determine the exact amount that may be required. It happens that auctions start from $100,000, but in the process of competition for the possession of a promising lot, the bar rises to $2 million.

It is very difficult to sell jewelry profitably and quickly, since prices rise slowly, and the associated costs are high: you have to pay a commission to the auction or another intermediary. The purchase is also associated with serious expenses: you need to pay for the examination, ensure safe transportation. Evaluation of jewelry will pull at least 35 thousand rubles, the commission to the intermediary will be 0.5-3%.

According to Muratov, one can earn money on jewelry within one or two years. The profit in this case comes not from the fact that the jewelry becomes more valuable from a historical point of view (this should be expected for 10-20 years), but from the rise in price of precious metals and stones, an increase in demand and the ability to find a buyer. It is rare to manage such a business; a certain amount of luck is needed here.

One of Singapore Castle's clients recently managed to make a lot of money reselling a gold ring set with a rare blue diamond. He bought this jewelry from a private collector for $2.1 million, and in the process of bargaining, the price was reduced by 8% from the original. After 4 months, the investor sold the ring at a private auction for $2.75 million, the profit exceeded $500,000.

Nuances of choice

Among the factors that affect the cost of jewelry, we can distinguish: the name of the jeweler, uniqueness, history of ownership, characteristics of stones and time of manufacture. The quality of the product, of course, must be on top. The cost of jewelry is largely determined by the gemstone. When buying, an investor should pay close attention to its uniqueness and quality.

Irina Stepanova claims that there is now a good demand for colored diamonds, emeralds, sapphires and rubies. Non-precious stones have also recently become more expensive: beryls, aquamarines, turquoise and tourmalines. The dynamics of them can be traced differently, but some stones seriously increase in price. For example, 15 years ago a carat of aquamarine cost $15, and now it is about $300.

According to Muratov, if an investor wants to capitalize on the growth in the price of a precious stone, then it might make sense to order jewelry from professionals. It is not difficult to do this: you need to buy a stone without a rim and find a jeweler whose work is in demand on the market. An exclusive product will be easier to sell for a good price. The cost of work will be 2-3 times less than if you take a similar decoration in a store. Savings will come from the absence of an intermediary and logistics costs. The total cost of stone, precious metal and work is always less than the finished product in the store.

Another important nuance is the origin of the product. Usually, jewelry worn by famous personalities rises in price faster, and the interest in them from collectors is higher. You can get information about the history of the jewel from the jewelers. Jewelry houses usually keep archives, and it is often possible to find a customer by the product registration number.

As for jewelry houses, Buccellati, Bulgari, Cartier, Chopard, Harry Winston, Graff, Mikimoto, Piaget, Tiffany & Co, and Van Cleef & Arpels are all over the place. However, not all products of these companies become more expensive every year. Exclusive jewelry is valued, and the cost of mass products does not change much over time.

Experts recommend not to let out of sight the work of individual masters known for their unique works. In recent years, jewelry from Georges Braque, Peter Chang, Coco Chanel, Andrew Grima and Suzanne Belperron has been highly quoted on the jewelry market.

In addition to the creations of recognized masters, the products of young jewelers are very promising. In particular, experts recommend investing in young Russian brands. So far, their cost is underestimated, since wide popularity has not yet come, but the quality of work and artistic intent are sometimes at a very high level. Such jewelry is clearly underestimated and will become much more expensive in 5-7 years. As examples of promising companies, Eduard Utkin cites participants in the international jewelry exhibition that was recently held in London. These are Russian Gems, jewelry houses: Ringo, Argentov, Kabarovsky, Chamovsky, Echo, Treasure House and Aldzena.

Jewelry that became widely known in certain historical periods can also rise in price significantly: for example, in 1900–1920. or in the 1950s. Such jewels are constantly growing in price, because they have cultural and historical value, and are in demand by wealthy collectors. According to Knight Frank, in the last decade, antique jewelry has risen in price by 63%, products created in 1945-1975. - by 73%, products of the Belle Epoque (1971-1914) - by 93%.

When selling jewelry, collectors are in a better position. For example, if there are several Van Cleef brooches of a rare series, then such a collection can be sold for more than all the items individually. It makes sense to collect not only the creations of one author, but also the jewels of one era. By selling all the jewelry of one historical period at once, you will probably earn more. That's just the search for a buyer can be delayed.

The purchase of mass jewelry sold in chain jewelry stores cannot be considered an investment tool, experts assure. “There is a very large mark-up by sellers on consumer jewelry in Russia, not to mention taxes. Such jewelry is two to three times more expensive than the metals and precious stones that are used in them, ”explains Andrey Kochetkov, an analyst at Otkritie Broker. After the purchase, they immediately lose part of the price, which is associated with various mark-ups and production costs, since they can most often be sold based only on the price of the precious metal.

Only certain categories of jewelry can increase in price in the future. “Firstly, these are products with large natural stones, since the cost of stones is growing much faster than the cost of precious metals,” Eduard Utkin, director general of the Russian Jewelers Guild association, lists. Among precious stones, stones weighing more than one carat are considered large on the market, among semi-precious ones - from about five carats, the expert clarifies.

The second category is jewelry that is complex in execution and artistic design, which has cultural or historical value, are works of art or antiques. According to Utkin, the cost of products in both cases starts from amounts of several hundred thousand rubles, and the value of a unique product can only be fully appreciated in 20-30 years.

Investing in jewelry is the business of wealthy investors, Eldiyar Muratov, president of the Singapore Castle Family office, is sure. “Investment in jewelry houses is available only to the wealthy public and is aimed at preserving capital and obtaining a significant increase in the price in the future,” he says. Wealthy is understood as the public with assets of $5 million or more, the expert clarifies.

However, not the richest investors can get around the restrictions and make money on jewelry, experts interviewed by RBC are sure. For example, says Andrei Kochetkov, you can try to find jewelry with a lower margin. “If you have the opportunity to visit a country like the UAE, then you can buy gold jewelry from local jewelers with a markup of 10-15% on top of the price of gold on the stock exchange. It is quite obvious that such a purchase can justify itself in a shorter period of time,” he notes.

Advantages and disadvantages

There are benefits to investing in jewelry. The acquisition price in this case is not volatile and is unlikely to fall. “For some time it will be a constant, and then it will gradually begin to grow depending on the growth in the cost of stones and metal and the increase in demand from collectors. It is almost impossible to get a loss here, ”said Anna Kokoreva, deputy director of the Alpari analytical department. In addition, the high capital intensity of assets can be attributed to the pluses. “Precious items allow you to concentrate a huge amount of money in one small object. Due to their small size and weight, there are no problems with their storage,” says Eldiyar Muratov.

The main disadvantages of investing in jewelry are low market liquidity, a long investment period and a high entry threshold. As in the case of buying paintings, the horizon for investing in jewelry is usually 20-30 years, and the cost of precious jewelry at auctions usually does not fall below $300-400 thousand. “It is difficult to determine the lower entry threshold. Jewelry can be sold at auctions starting at $100,000, but during the auction, the cost can rise to $2 million,” explains Muratov.

Implementing such investments momentarily is also unlikely to succeed, especially since this process requires special expertise, adds Anna Kokoreva. “To buy a valuable piece of jewelry, you need to spend money on expertise and safe transportation, and to sell, you need to pay a commission to an auction or other intermediary, as well as find a buyer,” she says. The cost of services will depend on the complexity of the examination and transportation. The minimum cost of jewelry appraisal, according to the expert, starts from 35 thousand rubles. and higher. Commission to the intermediary can be 0.5-3%.

You can also make money on buying jewelry in the short term (one or two years), however, in this case, the income in this case will depend not on the increase in the historical value of the product, as in the future of 10-20 years, but on changes in prices for precious metals and stones, competition among contractors and, most importantly, on the level of demand for a particular product and the ability to find the right buyer, explains Muratov. Such cases are rare, but they do occur. “An example is the transaction of one of our clients. An investor purchased a gold ring with a very rare blue diamond for $2.1 million from a private collector (with an 8% discount), and then, four months after the purchase, put it up for sale at a private auction and sold it for $2.75 million, earning thus $650,000,” says Muratov.

How to choose

The cost of jewelry is influenced by several factors: the name of the jeweler, provenance (ownership history), uniqueness, characteristics of the stones and the period of manufacture, says Irina Stepanova. “Also, of course, the quality and safety of the product and confirmation of the authenticity of the origin are also important,” adds Anna Kuchera.

Gemstone greatly affects the cost of jewelry. It is better for an investor to purchase products with rare and high-quality stones, experts advise. According to Irina Stepanova, colored diamonds and precious stones such as sapphires, rubies and emeralds are now the most expensive and in demand. Among diamonds, according to the Fancy Color Research Foundation (FCRF), blue diamonds showed the highest yield over 12 months, with their average value rising by 5.5%. According to Eduard Utkin, non-precious stones, such as aquamarines, beryls, tourmalines and turquoise, have also become more expensive in recent years. “The growth in the case of each stone is different, but, for example, an aquamarine stone 15 years ago cost about $15 per carat, and today they give about $300 for 1 carat of this stone,” he gives an example.

By the way, if an investor wants to focus on a precious stone, then it may be beneficial to create jewelry to order. To do this, you can buy an unset gemstone and find a professional jeweler who will make it a masterpiece, says Eldiyar Muratov. “Such a product may turn out to be “piece” and have no analogues, which will increase its value. In this case, the cost of manufacturing a product will be two to three times less than when buying an analogue in jewelry stores. Savings will occur due to a reduction in the distributor and brand markup, logistics costs and due to the minimum markup when buying stone and scrap,” the expert notes.

Another point worth paying attention to is the origin of the product. As a rule, jewelry with an interesting biography rises in price faster than others. In addition, the probability of finding a buyer among collectors is higher. You can find out the history of jewelry in the jewelry houses themselves and from jewelers, if they keep archives with registration numbers of products and names of customers.

Experts name Harry Winston, Buccellati, Van Cleef & Arpels, Graff, Tiffany & Co, Piaget, Cartier, Chopard, Bulgari and Mikimoto among the famous jewelry houses. True, experts warn that belonging to a large jewelry house does not guarantee that the price of jewelry will increase. If this is not an exclusive jewelry, but a mass product, then, despite the well-known brand, its price, most likely, will not change significantly.

Experts advise to take a close look at the works of individual craftsmen who have created and are still creating unique pieces of jewelry. Thus, among the high-profile acquisitions in the jewelry market in recent years, Knight Frank experts name the sale of jewelry by such authors as Suzanne Belperron, Andrew Grima, Georges Braque, Coco Chanel and Peter Chang.

In addition to recognized masters, you can also pay attention to the products of young, as yet unknown jewelers and jewelry companies, Eduard Utkin advises. “Now it is profitable to invest in our young national brands. The cost of their jewelry is underestimated so far, since there is still no premium for brand awareness, while the quality of workmanship and artistic intent are at a high level,” the expert notes. Such jewelry, according to the expert, is obviously underestimated and will rise in price within five to seven years. Among the young and promising Russian firms, Utkin names, for example, eight companies that took part in the London jewelry exhibition in September 2017: these are ArgentoV, Ringo, Russian Gems, Chamovsky, Kabarovsky, Treasure House, Echo and Aldzena jewelry houses .

An increase in value can also be expected from jewelry associated with certain historical periods - these are products created in the 1900-1920s, as well as in the 1950s, says David Warren, director of the Christie's jewelry department in London. According to him , the cost of such jewelry is constantly growing, as they have historical and cultural value and are in demand by collectors.According to Knight Frank, over the past ten years, the value of antique jewelry has increased (by 63%), products created between 1945 and 1975 ( by 73%), as well as Belle Époque jewelry (Belle Époque is a symbol for the period of European history between the last decades of the 19th century and 1914, by 93%).

Also, the creation of a collection of jewelry can positively affect the price. “If you are lucky enough to collect a collection of Patek Philippe watches or Van Cleef brooches from a rare series, this increases its value and demand,” Irina Stepanova gives an example. You can collect not only the works of one author, but also products of the same era. “If you combine jewelry from the same historical period when you decide to sell this collection, it is likely that the value of the jewelry will be higher than if you sold them individually,” concludes David Warren. According to him, this is a profitable tactic, however, it is almost impossible to predict with certainty whether the collection will increase in price and by how much.

It is worth buying exclusive jewelry only from reliable sellers or directly from famous jewelers. “Then this product will be accompanied by the necessary certificate of conformity and reputation. In other cases, there is no guarantee that this product is not a replica of the original or even a fake,” Andrey Kochetkov warns. You can monetize the increase in the price of jewelry by selling it privately or through various auctions.