RESIDENTIAL RESEARCH
JEWELLERY SPECIAL Luxury Investment Index Q2 2017
JEWELLERY PERFORMANCE BLUE DIAMONDS INTERVIEW: BARBARA IN FOCUS SPARKLE TAYLOR BRADFORD WEALTH REPORT UPDATE 2 LUXURY INVESTMENT INDEX Q2 2017
Jewellery overtakes cars as wine powers ahead Records tumble as jewellery maintains its robust performance in the Knight Frank Luxury Investment Index
It’s all change at the top of the Knight As stones get larger the differential Frank Luxury Investment Index (KFLII). increases dramatically, says Eden Classic cars, which have dominated the Rachminov, chairman of the FCRF. rankings for the past few years, have now Jean Ghika, head of Bonhams’ London slipped back into sixth place on an annual jewellery team, says great care is needed basis with average prices rising by just 2% when buying coloured diamonds. “It to Q2 2017. is a very complex market. Not only are Wine, driven by strong growth in the there considerable differences in pricing key Bordeaux, Burgundy and northern depending on the intensity of colour, but Italian investment-grade markets, has the addition of a secondary colour within now claimed top spot with the year-on- the stone can also impact the value. It is year value of the Knight Frank Fine Wine vital to see a certificate, which should be Icons Index shooting up 25%. issued from an internationally recognised That’s not to say the most collectable laboratory stating both colour and cars aren’t fetching a lot of money. Nine clarity,” says Ms Ghika. cars broke the $5m barrier at the recent benchmark sales in Monterey, California, Artist jewellery with Bonhams setting a record for a Jewellery has always been a Meanwhile, the wider jewellery market Mclaren F1 ($15.6m) and RM Sotheby’s continues to see steady price growth traditional store of portable historic Aston Martin DBR1 going under with prices up 4% over the past 12 wealth. As the best-selling the hammer for an eye-watering $22.5m. months, according to data from Art novelist Barbara Taylor- It has also been a record-breaking year Market Research. This headline figure, Bradford points out on page 5, in the world of jewellery. In June, the however, masks a wide differential in the there are few other investments 18.04 carat “Rockefeller” emerald set a performance of jewellery from varying of passion that you can simply new world record per carat for the green eras and styles (see chart on page 4). scoop up, put in your pocket gem ($305,000) when it went under the Pearls, which had seen a surge in hammer for $5.5m with Christie’s in and run away with in an values over the past few years, have New York. emergency. Hopefully it won’t levelled out and it is more modern In April the Pink Star, a 59.6 carat jewellery that is now setting the pace. come to that for most of us, but fancy vivid pink diamond, snatched the it’s still reassuring to know that “There is a current trend for jewels record of world’s most expensive piece of from the post-war era, where the jewellery has been one of the best jewellery from the Oppenheimer Blue – a emphasis is on design, quality and performing asset classes in our 14.62 carat vivid blue – when it sold for workmanship. These pieces, often Luxury Investment Index over $71.2m in Hong Kong. unique or in limited supply, are easy to the past 10 years. Interestingly, however, blue diamonds wear, distinctive and increasingly are still setting the pace in the wider sought after by discerning collectors,” I hope you enjoy reading market. According to data from the Ms Ghika explains. the report. Fancy Color Research Foundation In particular, pieces designed by (FCRF), the average price of blue stones artists (see page 4 for some of the most ANDREW SHIRLEY rose by 5.5% over the 12 months to June, collectable), rather than established compared with a slight drop in the value The Wealth Report Editor jewellery brands, are in high demand, of pink diamonds. she notes. “Historically, jewellery has At the top of the coloured diamond been a form of wearable adornment, but market, slight changes in colour can have it is now increasingly being considered a huge impact on prices. A one-carat fancy an art form in its own right. Modern vivid blue stone, for example, would be and contemporary jewellery designers worth roughly 10 times more than a one- appeal to collectors who wish to build a carat fancy light blue stone, says FCRF collection of jewellery as they might build (see chart on page 4). a collection of contemporary art.” WEALTH REPORT UPDATE 3 LUXURY INVESTMENT INDEX Q2 2017
ewellery performance versus other asset classes (to Q2 2017) 10-year asset price volatility
25 Most FTSE 100 PCL* KFLII EWELLERY GOLD volatile 400 20 £
300 15 £
10 £ 200 £ £ £ £ Volatility 5 £ £ 100 £ £ £
Index Q2 2007 100 Q2 Index 0 £ £
Least
Art volatile Cars Gold PCL*
0 Wine KFLII Coins Stamps 07 08 09 10 11 12 13 14 15 16 17 Chinese Watches FTSE 100 FTSE Furniture ewellery Coloured Coloured ceramics diamonds
*Knight Frank Prime Central London Residential Index Based on annual price points Source: Knight Frank Research Source: Knight Frank Research
KFL performance by asset class (to Q2 2017)
COLOURED STAMPS CARS EWELLER COINS WATCHES KFL ART WINE ANTIQUE DIAMONDS FURNITURE 1 2 4 4 4 7 2 0 12 MONTHS CHINESE -3 CERAMICS -12
STAMPS ART COLOURED WATCHES KFL EWELLER COINS WINE CARS CHINESE DIAMONDS 5 YEARS ANTIQUE CERAMICS 11 11 24 42 49 0 61 117 1 FURNITURE -13 -22
CHINESE WATCHES COLOURED STAMPS ART EWELLER KFL COINS WINE CARS ANTIQUE 10 YEARS CERAMICS 6 DIAMONDS 103 113 142 14 182 231 362 FURNITURE -2 89 -32
Source: See back page for details of data suppliers 4 WEALTH REPORT UPDATE LUXURY INVESTMENT INDEX Q2 2017
ewellery performance versus other asset classes (to Q2 2017) 10-year asset price volatility Gems and jewellery – a sparkling return Pink 189% Most 25 volatile A graphical focus on the performance of diamonds and jewellery FTSE 100 PCL* KFLII EWELLERY GOLD Blue 89% 400 20Yellow£ 17% Coloured diamonds Jewellery price performance comparison 10-year average price change 10-year change Source: Art Market Research 300 15 (to Q2 2015) £
10 £ 200 £ £ £ £ Volatility 5 £ £ 100 £ £ £ PINK
Index Q2 2007 100 Q2 Index 0 £ £
Least
Art volatile Cars Gold PCL*
0 Wine KFLII Coins Stamps 07 08 09 10 11 12 13 14 15 16 17 Chinese Watches FTSE 100 FTSE Furniture ewellery Coloured Coloured ceramics BLUE diamonds
*Knight Frank Prime Central London Residential Index Based on annual price points Source: Knight Frank Research Source: Knight Frank Research YELLOW
KFL performance by asset class (to Q2 2017)
Numbers in brackets are 12-month price change
Relative value based on Artist jewellery - designers to watch colour saturation* Suzanne Hemmerle FA C Belperron (founded 1893) L HT (1900-1983) COLOURED STAMPS CARS EWELLER COINS WATCHES KFL ART WINE LUE Much admired ANTIQUE DIAMONDS Munich jewellery FURNITURE 1 2 4 4 4 7 2 1 00 One of the few 0 house founded 12 MONTHS pioneering female CHINESE -3 in 1893 CERAMICS master jewellers Moonstone and coloured -12 Diamond bangle c1932 diamond earrings – FA C – £164,500 (2015) £15,000 (2016) LUE 2 86 Coco Chanel Georges Braque (1883-1971) (1882-1963) Created a range Co-founder of Cubist FA C of fine jewellery movement with TE SE as well as iconic Pablo Picasso STAMPS ART COLOURED WATCHES KFL EWELLER COINS WINE CARS LUE CHINESE DIAMONDS fashion label 5 YEARS ANTIQUE CERAMICS 11 11 24 42 49 0 61 117 5 18 FURNITURE 1 Citrine twist necklace -13 c1935 – £68,500 Turquoise-set brooch -22 (2015) c1962 – £8,125 (2016)
Andrew Grima Peter Chang (1921-2007) (1944-) Widely regarded Liverpool-born artist FA C as the known for use of D “grandfather” of recycled plastics LUE modern jewellery 9 58 Gold, diamond and CHINESE WATCHES COLOURED STAMPS ART EWELLER KFL COINS WINE CARS emerald bracelet – Acrylic ring c2005 – ANTIQUE £3,500 (2017) 10 YEARS CERAMICS 6 DIAMONDS 103 113 142 14 182 231 362 £20,000 (2016) FURNITURE -2 89 -32 Source: Fancy Color Research Foundation Prices achieved at auction Source: See back page for details of data suppliers *Data correct as of Q2 2017. Based on a one-carat diamond Source: Bonhams 5 WEALTH REPORT UPDATE LUXURY INVESTMENT INDEX Q2 2017
An asset of substance Andrew Shirley talks to one of the world’s best-selling novelists and a leading expert about their passion for jewellery
His work is bold and sculptural, colourful one the most widely collected assets on a and playful and I liken this to wearable global level, along with art, watches and art. Tomorrow, I may be drawn to the wine. And it is performing extremely well. works of designer Wallace Chan, and Saying all this, my advice is buy what you the day after, those masterful pieces by love and feel passionate about. If you love Daniel Brush. a piece of jewellery, you will keep it; if you BTB I’m rather impressed by a company keep it, you will wear it. called Verdura, which produces pieces based on the archive of Duke Fulco di AS In your own experience, do Verdura who started designing for Coco tastes in jewellery change and Chanel. The pieces are very unusual what is hot at the moment? and the workmanship is very good. SA Yes. For instance, the interest in Belle The first piece Bob bought me was the Époque and Art Nouveau jewellery has Chanel bracelet, which is made of white been replaced by the more wearable and enamel with a centrepiece of coloured collectible jewellery of the 1960s and 1970s. jewels. I also like the designs of Suzanne Jewellery from the 1980s is finding favour Belperron. Bob bought me a beautiful strand of green beads. A designer called too, as is art jewellery. Dvora has also designed some really beautiful things for me. Continued overleaf…
AS What advice would you give somebody looking to start a Barbara Taylor Bradford OBE has Barbara Taylor Bradford OBE jewellery collection? written 32 books, which have sold In order to amass a collection of SA over 88m copies in 90 countries and jewellery, you must acquire knowledge Andrew Shirley What sparked your 40 languages. of the subject. To begin, I would suggest love of jewellery? taking classes, visiting museums, Susan Abeles is the Director of Barbara Taylor Bradford The men going to jewellery previews at auction Bonhams’ US jewellery department in my life! My father loved jewellery and houses and chatting to the experts. and has a specific interest in signed taught me to love it, too. When I was Pick a theme for the collection that you jewels from the Art Deco period. working at the Yorkshire Post he gave me a find attractive, such as gemstones, era, string of pearls for my eighteenth birthday. designer, origin, or provenance. Watch Oddly enough, I’ve also just found a little the market to see how your theme is gold bracelet with my star sign on that he performing, and join collector groups. gave me when I was 20. My husband Bob Choose your items carefully, so that (television producer Robert Bradford) also each purchase counts, and remember loves to buy me jewellery. that quality and condition count.
Susan Abeles My first job out of school BTB Don’t go for lots of bits and pieces, was an assistant bookkeeper in an auction save up your money and go for one big house. The exposure was expansive, and I piece by a big name like Cartier, Tiffany quickly moved departments and learned or Harry Winston that will keep its value. about the business and objects. Quite by And don’t throw away the box it came in – accident I was directed to the jewellery a friend’s husband threw away all her department, where my education in boxes recently – if you ever re-sell having chemistry was reignited and my passion a piece in its original box can help retain and interest for gemstones grew. some of its value.
AS Who are your current favourite AS Can jewellery be a jewellery designers and why? good investment? SA There are so many current talented BTB Extremely – having sold some of jewellery designers to pick from it hardly my pieces at auction I have the proof. seems fair. Today, my favourite designer is James de Givenchy for Taffin. I adore SA Historically, jewellery has been a his work; he is enormously creative and common way to store and transfer wealth adept at capturing the natural beauty of in many cultures. People will always a gemstone and pairing it with a modern buy jewellery. Think about it: you can mounting that showcases the qualities of put jewellery in virtually in any market, the gemstone which he finds important. allowing for slightly different tastes. It is Susan Abeles INDEX SOURCES BTB In the late 80s and 90s really big KNIGHT FRANK brooches were in fashion, but that seems INTELLIGENCE Art AMRD For the latest news, views and analysis to have died down. What people seem to be on the world of prime property, visit Chinese ceramics AMRD buying today are unusual or long dangling earrings and lots of bracelets that you can Antique furniture AMRD stack together. Jewellery AMRD Research Watches AMRD AS What is your most cherished Andrew Shirley Wine Wine Owners piece of jewellery and is there a The Wealth Report Editor Classic cars Histori c Automobile particular piece you’d really like +44 1234 720534 Group International to own? [email protected] (HAGI) BTB A sapphire and diamond ring by Stamps Stanley Gibbons Media & PR Claire Richter that is like the one Prince Celia Welham Coins Stanley Gibbons William gave to Kate, but Bob bought mine +44 20 7861 1033 Coloured diamonds Fancy Color for me 38 years ago! [email protected] Research Foundation SA Every day I wear a Cartier gold ring Please contact [email protected] designed by Dinh Van. It has no gemstones, for more details of each index but I love it because of the design – strong and bold – and because it was my mother’s. I would love to have owned Anna Thompson Dodge’s five strand natural pearl necklace by Contacts and acknowledgements Cartier, purchased in 1920 (alleged to have once been owned by Catherine the Great). HAGI www.historicautogroup.com; Stanley Gibbons www.stanleygibbons.com; Wine Owners www.artmarketresearch.com; Fancy Color Research Foundation: www.fcresearch.org; AS White or coloured diamonds? AMRD www.artmarketreport.com. AMRD also tracks the price-movement of: sculpture, silver, porcelain, toys, carpets, clocks, photography, prints and many other collectibles. Sapphire, ruby or emerald?
SA In the ideal world, if I was able to collect Front cover: A fancy-intense blue 4.03 carat diamond due to be auctioned by Bonhams on any gemstone at the finest quality, my top 20 September with a guide of £1.2m to £1.5m choice would be a crystal, pigeon’s blood red, unheated, gem quality cushion-shaped ruby with exceptional saturation and Knight Frank Research provides strategic advice, consultancy services and forecasting liveliness. This gem need not be more than to a wide range of clients worldwide including developers, investors, funding seven carats, because I would intend to organisations, corporate institutions and the public sector. All our clients recognise wear it every day. the need for expert independent advice customised to their specific needs.
BTB I like white diamonds, but I love sapphires, emeralds and aquamarines. I think those are the colours that look best on blonde Englishwomen! However, it’s pearls that are my signature; if I do an event and I’m not wearing them my fans will ask: where are the pearls?
AS In your opinion, why buy jewellery not art, cars or wine?
BTB I do get a lot of pleasure looking at impressionist art, but I can throw all my jewellery in a bag and run! Being an imaginative novelist and journalist with © Knight Frank LLP 2017 some knowledge of the world I am always This report is published for general information only and not to be relied upon in any way. Although high standards imagining what could happen. have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from SA Jewellery is portable and wearable; any use of, reliance on or reference to the contents of this document. As a general report, this material does not it lasts beyond wine, and does not require necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form a garage to be housed in, nor does it sit and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with on the wall waiting to be admired. registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a Jewellery travels with you; it enhances list of members’ names. and brings enchantment.