Fine jewellery occupies a distinctive position within the world of alternative assets. Exceptional gemstones, renowned craftsmanship and precious materials can support value, but provenance, personal history and emotional significance often matter just as much.
The Citywealth article When a Jewel Becomes More Than a Jewel – Jewellery and Alternative Assets explores how royal ownership, celebrity associations and historical significance can transform exceptional jewellery into cultural objects whose value extends far beyond the gemstones themselves.
Dr Ariel Sergio Davidoff, Founding Partner at Davidoff Law in Switzerland, offers his perspective on how wealthy families approach jewellery, gemstones, watches and precious metals. In his experience, fine jewellery is rarely treated as a core investment or mainstream wealth-preservation strategy.
Most acquisitions are driven by personal enjoyment, individuality, craftsmanship and the desire to build a meaningful collection. Davidoff identifies three groups. Collectors buy jewellery and watches out of passion. “Preppers” hold recognised gold coins for emergencies. Strategic diversifiers invest in gold through financial portfolios. Strategic diversifiers, by contrast, gain exposure to gold through investment portfolios.
This creates important considerations for collectors, families and advisers. Jewellery may preserve or increase in value, but buyers should not assume consistent investment performance. Provenance, rarity, certification, condition, insurance, security and liquidity can all affect long-term value.
The article also underlines the importance of succession planning. Families often face legal, financial and emotional challenges when passing collections to the next generation. Clear documentation, realistic valuations and early family discussions can help preserve provenance, reduce uncertainty and prevent disputes.
For a more detailed professional overview, read the full article here:
When a Jewel Becomes More Than a Jewel – Jewellery and Alternative Assets
Further related insights from Ariel Davidoff and Davidoff Law are available here:
Due Diligence in the Art Market
Succession 2.0
New Ways to Harmonise the Family and Its Wealth
In short, exceptional jewellery can combine beauty, craftsmanship, emotional significance and financial value. However, successful collecting requires more than acquiring attractive pieces. Careful due diligence, reliable documentation and appropriate protection help preserve both the collection and its value. A clear succession plan also ensures that future generations can inherit and manage it responsibly.
