Antique jewellery in 2011
Author: Martin Cinolter for Antiques and Arts Magazine
An article for the magazine "Antiques and Arts" describing the developments in the world of antique jewellery during 2011.
Last year, from the perspective of traders in jewellery and precious stones, was marked by the fluctuation in gold prices, which significantly impacted jewellery prices, particularly in the lower price categories. At the beginning of last year, the price of gold was around USD 1,400 per troy ounce. It quickly surpassed USD 1,500, surged to USD 1,700, paused briefly at USD 2,000, and then exceeded it without hesitation. However, it soon began to decline, closing the year at approximately USD 1,700 per troy ounce – a 20% annual increase. Since 2001, when the price was at its lowest at USD 255.3 per ounce, this represents a rise of approximately 660%. Silver was much more conservative, starting the year at USD 10 per ounce, climbing to USD 40, then following gold's trend by dropping to USD 25, and closing around USD 38 per troy ounce. These fluctuations in precious metal prices directly affected the cost of cheaper jewellery, where metal constitutes the largest percentage of the sale or wholesale price. For example, if a jeweller makes a ring from two grams of 14-karat gold, with the metal costing approximately CZK 1,200 per gram compared to CZK 350 in previous years, this significantly influences the final price.
Nevertheless, for jewellery traders, and I believe also for us dealing in antique and artistic jewellery, it was a very successful year. Partly due to incompetent politicians, people are losing trust in the system and currencies, while greedy financiers erode confidence in stocks. The lingering scent of a latent crisis remains in the air. People are beginning to explore alternative ways to preserve the value they have earned through honest work. They are rediscovering the experiences of previous generations, who faced sudden currency devaluations, rapid political changes, and were often forced to leave their homes and possessions behind. In such times, a diamond or other piece of jewellery often provided financial security for individuals and families. Learning from past experiences has significantly contributed to the rising interest in jewellery. Surprisingly, diamond prices did not rise dramatically despite increasing demand. Diamonds continue to hold their reputation as a conservative but secure investment. However, coloured stones follow recent trends, and their prices are progressing more dynamically. For instance, corundum stones, especially higher-quality rubies, have seen growth between 125% and 300% since 2006, depending on quality.
For antique jewellery, there is a significant increase in demand for high-quality pieces, not only in the higher price categories but also for jewellery priced under CZK 10,000. It’s no surprise that many individuals who purchased new jewellery years ago and later tried to sell it were unsuccessful in their resale attempts. Retailers often refused to buy back these items. The situation is different with antique jewellery. Antique pieces have stood the test of time and multiple generations' tastes, making them highly desirable for traders in antique jewellery, often under very favourable conditions for the customer. Major international auction houses have reported record sales in the realm of antique jewellery.
Standing out above all is Art Deco jewellery, which many jewellery companies today replicate and draw inspiration from. Genuine Art Deco jewellery hails from a time when items were still handcrafted, and jewellers were true artists, not mere artisans. In this context, I must highlight the work of many Czech jewellers in recent years, whose individual craftsmanship, while not antique, is selling very well. A prime example of the season’s highlight was the auction of jewellery from Liz Taylor's collection. Her jewellery was snatched up in the auction as fervently as prime spots on the electoral lists of parliamentary parties. From the original CZK 520 million estimated by experts at Christie’s New York, the final auction price nearly quintupled to CZK 2.3 billion. A total of 80 pieces were auctioned, including an emerald necklace adorned with diamonds, brooches, diamond tiaras, and earrings made with blue sapphires and brilliant-cut diamonds. The pinnacle of the auction was a necklace featuring the rare pear-shaped natural pearl from the 16th century known as "La Peregrina." This pearl had been owned by Spanish queens and England's "Bloody Mary," Queen Mary Tudor. Purchased for CZK 720,000 by her then-husband Tim Burton, its current estimated value is CZK 51 million. Ultimately, the necklace achieved an incredible price of CZK 236,850,000 amidst thunderous applause in the auction hall. Quite a remarkable investment in antique jewellery. Also noteworthy was a stunning diamond ring featuring a magnificent 33.29-carat Asscher-cut diamond complemented by two trapezoidal baguettes. Tim Burton had purchased it for Liz in 1968 during their first marriage. Estimated at CZK 50–70 million, the auction price exceeded CZK 176 million.
Although we lack such “highlights of the season” in the Czech Republic, antique jewellery enjoys the spotlight among our collectors and customers, who have fallen for the charm of quality handcrafted jewellery or seek a sound investment. Last year saw several sales to Czech customers investing millions in individual antique pieces. Over the past 20 years, Czech customers have undergone a transformation. I am pleased to observe an increasing number of cultivated, knowledgeable clients who have broadened and deepened their understanding. They demand quality craftsmanship, appealing design, and guarantees of the jewellery or stones’ authenticity. Moreover, they are willing to appropriately value the quality of the offered goods across all price categories. Ultimately, it doesn't matter whether it's a ring for CZK 1,000 or one worth a million.
Martin Cinolter
