Emotional Assets | Management & Research

Jewellery is not like equities or property, which can provide a stream of income. Jewellery is a store of value with a secondary or resale value. Like most things, quality jewellery items tends to maintain its value better than inferior pieces. However, it does take many years for jewellery to appreciate beyond its original value. Another benefit of jewellery is that it is perhaps the most portable of all assets and is readily transportable.

The most popular form of gold jewellery in Asia – heavy chains and bracelets – is known as "investment jewellery" in the gold industry.

The value of jewellery is made up of the various components that go into making each piece, each of which has its own intrinsic value. The four main components that make up the value of jewellery are:

• the quality of the stone
• the design
• the craftsmanship
• the condition.

The sum of the components may or may not be more than the individual components. However, it is not recommended to buy jewellery with the purpose of resetting the stones into another piece. Firstly you will lose any historical value the original jewellery had and secondly the costs of resetting jewellery tend to be high.