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It's time to take grandma's jewelry out of the vault.
That's because the popularity of estate and vintage pieces is growing, even as the overall jewelry market falters. Since inventory is fixed and often in short supply, antique jewelry is sought after by consumers looking for one-of-a-kind pieces.
While the jewelry market is expected to experience several years of stagnant sales, "other" jewelry, which includes estate jewelry, has achieved at least modest gains, according to a May survey conducted by Mintel, a market research firm with offices worldwide. "Other" jewelry and accessories make up 15.1% of the market, up from 14.1% in 2005.
"The demand for antique and estate jewelry is still very strong," says Russell Zelenetz, partner at Stephen Russell jewelers in New York City. "Old jewelry is undervalued as an art."
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This--and a challenging economy--has prompted many jewelry collectors to unlock their safes and sell heirloom pieces they have been holding onto in an effort to gain additional income.
At Freeman's June 8 fine jewelry sale, the Philadelphia-based auction house racked up $1,185,000 million in less than three hours. Its original low-end estimate was $600,000. With a full audience and 21 phone bidders, Freeman's sold all 244 lots.
The coveting of estate jewelry is not limited to the United States; it has become a global addiction.
"International markets such as Russia, Far East and Middle East," says Lee Siegelson, owner of Siegelson, a Manhattan-based jeweler, "are looking to collect jewelry and are realizing and appreciating jewelry as an art form."
Jewelry from the 1950s and '60s is less in vogue. The most sought-after pieces currently are those from the 1920s and '30s and the Art Deco period, says Francois Curiel, international head of jewelry at Christie's auction house.
"Lately there have been less of these pieces on the market," he says, "and as a result, the value has shot up to almost double or triple estimates."
"With estate jewelry, the customer tends to approach the product as [a] collector rather than [a] consumer--not only as [a] beautiful object, but as something that could appreciate in value over time," Kaplan said.
Navigating the estate jewelry market can be challenging--whether at an auction house or at retail.
When shopping for estate jewelry, you should look for a period piece that speaks to you and fits your personality. If you plan on wearing the item every day and not just for special occasions, make sure it is versatile and can go with business and weekend wear.
And while it is important to buy a piece you'll wear and future generations will want to keep, the item should also have a strong resale value. Stay away from trendy items and stick to the classics that will still be in style 20 years from now.
If you plan to get your next piece at an auction, be careful not to be seduced by seemingly discounted prices.
"People think they are getting a deal at an auction house," Waterhouse says. "While merchandise tends to be cheaper, people tend to get carried away when it comes to bidding. When they find out the price is one-third what they would be paying at retail, their eyes light up. It's like walking into J.Crew and seeing a sign that says 'Everything 40% off.'"
Finally, be aware of fakes, warns Curiel.
"Art Deco pieces don't always have their original stone," he says. "Sometimes the stones have been changed and replaced with cheaper semi-precious stones. Ask the jeweler or auction house if they think the stone is an original."
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