While the continued slump in the economy and rise in precious metals prices have taken their toll on sales in the luxury market, there is one segment that may actually be seeing a positive side effect. “I think people are viewing estate jewelry as having a price advantage,” says Cindy Ritzi, owner, William Ritzi & Co., Daytona Beach, Florida. “It feels like people are more willing to look at estate things than they were in the past.”
Scott Gordon, Scott Gordon Jeweler/Gemologist, Oklahoma City, Oklahoma, sees the country “moving into the era of commodities. Whether it’s a short-term blip or a true trend, right now commodities are a well-performing asset and jewelry is an expression of that. If people perceive that they are purchasing at the right price initially, they’re a little more open to the idea of jewelry as a means of preserving wealth. As long as they understand the quality of what they are buying and are shown that the quality is superior, they will be receptive to believing in jewelry as a vehicle for maintaining value — maybe not growing it, but at least maintaining it. And while all of us in the business are very, very cautious about portraying jewelry as a true investment, there is a legitimate way in which we can talk about jewelry as a permanent store of real wealth.”
“People are looking for value, if they do let go of their money, and they’re looking for something that has some staying power and some history. I think the economy has helped estate jewelry in that regard,” states West Coast wholesaler Deborah Wilson, owner of Vendome, Inc. in Santa Barbara.
A Seller’s Market?
The flip side of this perception of increased value in older jewelry is the feeling that the marketplace is being flooded with great new buying opportunities for dealers. The truth, however, is that while the gold jewelry that people are eager to sell may glitter, it is far from a golden opportunity for resale.
In fact, explains Jeff Russak, owner, Lawrence Jeffrey Estate Jewelers, Litchfield, Connecticut, “People are being very smart; they’re holding on to the pieces that they know are great and they’re trying to get the most money that they can for lesser pieces. So what I’m really seeing is a lot of jewelry that is just scrap. I’m not saying that we’re not buying better pieces from the public — we are, just not a tremendous number of them.”
“I don’t really see things coming out of the woodwork,” agrees David Walker, president, Swan & Co. estate jewelry, Chestnut Hill, Massachusetts. “We have bought a lot of beautiful things this past year and, from that perspective, it’s good. But it’s always a challenge to buy nice diamonds and fine colored stones and signed estate jewelry, as well as antique jewelry. We recently bought a pair of D flawless, type IIa, cushion-cut diamonds — a perfect pair — and we bought a 20-carat emerald-cut G,VS2. Beautiful old stones are coming out, here and there.”
Ritzi is seeing “everything from scrap to people selling engagement rings. Thankfully, we do see some nicer estate pieces coming in. And it does seem like the marketplace is more interested in nicer estate things, not just average pieces.”
Louis Tenenbaum, partner, Tenenbaum & Company, Houston, Texas, notes that while “prices of gold and platinum and everything else” may be increasing, as far as the number of people selling pieces, the results are “across the board. People are selling inherited jewelry that they don’t wear or that doesn’t fit their lifestyle.”
What People Are Buying
What’s really hot right now, Russak says, “are high-end, ultrafabulous Modernist pieces. Not the sculptural fifties jewelry, but the more wearable sixties and seventies versions.”A beautiful Retro bracelet or a Victorian piece of jewelry, says Walker, gives customers “a lot of value for the money. Deco, Victorian, Edwardian, Retro pieces — they’re always in demand if priced logically.”
Ritzi says her customers seem to be interested “in the sentimental aspects of estate jewelry, asking about the history of a piece and why we have it and where it came from.” Recent sales include
“a number of very nice pins —
something that in the past, might
sit in inventory — Deco styles,
platinum with filigree and pavé diamonds, classics.” Ritzi also is seeing a big trend in custom requests. “A lot of people are recycling what they have, scraping out the old mounts and taking the stones out and redoing and remaking things. They’re finding value in that and are willing to spend money on that.”
Tenenbaum reports seeing the strongest interest in engagement rings, “vintage rings from the 1920s, 1930s, and earrings.” Wilson also says she’s sold several estate engagement rings with older diamonds. “I do think that’s a market that’s picked up here — clients don’t want to go to big stores.”
Wilson reports she’s selling more signed pieces, but not necessarily with big stones because West Coast style is more casual. “But Van Cleef, Cartier from the 1930s to the 1970s that are wearable pieces of jewelry in gold, that’s what we’re selling. And, of course, beautiful, smaller Art Deco gem bracelets are always salable.”
In general, Wilson says, “My experience is still what I said six months ago. We’re only selling the best things — natural pearls, signed jewelry that’s one of a kind. We don’t seem to be selling the middle at all. I think that people are seeing the value of things you can’t get anymore. When you have a five-strand natural pearl necklace, it’s something people will buy for the future, for their kids, and get enjoyment out of and understand the rarity of it.”
Gordon says attractive pieces, not necessarily with signatures, from the 1950s and 1960s, even into the 1970s, are popular sellers.
Going Forward
“It’s like a treasure hunt,” says Walker. “You never know what you’re going to find. It’s what gets you up every morning. I see continued appreciation in gold and platinum. I think that brings out people who want to sell their older estate and antique jewelry. So there’s going to be continued buying.”
“I think the estate jewelry market is going to be really strong in 2011,” predicts Russak. “I feel that the economy is going to lag, but I believe the estate jewelry market is going to be fairly robust. People want good quality; they want jewelry that is wearable, relevant to fashion today and they want good value. That’s hopefully what the estate jewelry market is about.”
Article from the Rapaport Magazine - January 2011. To subscribe click here.