Jewelry vs Watches vs Art: Which Collectible Type is Best for Investing?
Ian Ross | February 18, 2026Introduction
There have never been more options and flexibility when it comes to expanding an investment portfolio, and collectibles like jewelry, watches, and art are no exception. While many people opt to place their money into stock markets and bonds, investing in tangible assets comes with certain advantages. Today, we’ll talk about what it means to invest in luxury collectibles, particularly jewelry, watches, and artwork. The returns on each of these investment categories can meet or exceed those of traditional markets, but each case carries nuance.
Investing always comes with risk, but we’ve made it easier to make an informed decision about your investing strategy by breaking down the benefits and drawbacks of investing in each of these categories. We’ll also touch on how they compare to more traditional methods of collectible investing.
Current Views on Collectible Investments
Jewelry
Nothing compares to the breathtaking beauty of a high-end piece of jewelry. The sparkle and shape of gemstones and precious metals have caught the eye of collectors for generations, making the ownership of jewelry a uniquely passionate affair.
This means that collecting jewelry comes with an emotional dimension, making it difficult in some cases to determine a value. Pieces of jewelry with unique history or gemstones tend to fetch higher prices from those interested in exclusive pieces.
A major benefit to owning collectible jewelry is its ability to make extremely portable investments, whether as standalone gemstones or as wearable pieces. Their small size makes them easy to store and protect, and their durability means that they require virtually no maintenance if they aren’t worn.
It should be noted that lab-grown diamonds are not considered to be high-value investment items because of their dismal resale value. Even natural diamonds can be poor investments if purchased through major sellers because they lose value immediately due to retail markups. A small group of companies controls a large share of diamonds on the market, and artificial scarcity has been a concern among buyers. There are also ethical considerations when acquiring gemstones, depending on the method of purchasing.
In previous generations, diamonds were considered “safe” investments, but stagnation has gripped the market for the past few decades. The Diamond Price Index shows that the diamond market has increased only 9% in value since the year 2000, growth that is considerably lower than fine artwork and other collectible markets. Fortunately, there is no shortage of jewelry retailers and collectors to sell to, making jewelry a potentially more convenient type of investment than artwork and watches.
Another category of jewelry worth mentioning is precious metals, particularly gold and silver jewelry. Gold, in particular, has enjoyed considerable appreciation rates, rising over 150% since 2014. Because of jewelry’s wholesale ubiquity and resulting lack of scarcity for most pieces, most jewelry made from precious metals is worth roughly its spot price, a global standard that fluctuates similarly to oil, rather than localized appraisals. This makes gold and silver more resistant to economic downturns than fiat money, but it also means that most jewelry’s value from an investment perspective is determined by its precious metal content alone.
Similar to diamonds, however, retail jewelers tend to add significant markups when selling gold and silver jewelry, up to 200% in some cases. This means that purchasing directly from suppliers makes for a better investment than simple retail purchases. Jewelry made from gold and silver differs from bullion metals, which are bars or ingots made of precious metals. Bullion metals can be bought and purchased with ease, and are seen as more traditional investments than rare metal jewelry.
Watches
Luxury watches have long been associated with sophistication, class, and status. This form of wearable wealth has been made famous by brands like Audemars Piguet and Rolex, and their eye-catching designs can be an immediate symbol of prestige for the wearer. The world of investment has turned its head towards the luxury watch resale market in recent years, but do watches generally make good investments?
Premium watch brands with longstanding reputations can allow a timepiece to exceed its original price tag. A notable example of this is the Richard Mille RM 055, a watch that retailed for $120,000 in 2011. This watch is considered to be extremely rare, and it can now be seen with a $400,000 price tag for resale purchase.
However, this is an unusually high appreciation rate, and not every luxury watch is guaranteed to appreciate over time. To be clear, most watches tend to lose value after being purchased, especially if a watch was commonly distributed at the time of its release. Certain factors greatly impact the value of watches, from the manufacturer to the design. Simple, timeless looks tend to hold value over the years, and limited edition versions of watches can fetch significantly higher prices than standard assembly watches.
The general interest in the luxury watch market has never been hotter, thanks to the presence of online forums and the flaunting of high-end watches by celebrities who influence the cultural presence of wearable jewelry. This new surge of interest in watches has driven demand and prices up, and there are more watch collectors than ever before. Speculative buying has flooded the watch resale market, leading to certain watches being overvalued. Therefore, investing in a trendy watch can carry high risk, and watch investors tend to regret their purchases less when selecting a watch out of genuine desire.
It’s important to remember that no market is fully protected from financial dips or crashes, and these substantial returns that we’re seeing now might not be the case in 10 years. The current hype surrounding the luxury watch niche can cause certain models to become overvalued, making them terrible long-term investments.
Given the uncertainty around luxury watches, it’s crucial to do research before making any large purchase. Financial advisors or expert consultants can offer valuable advice for long-term watch ownership. Remember that even if a watch doesn’t appreciate, it can still retain a high percentage of its value years after making a purchase.
Artwork
Perhaps the most fascinating and elusive market, artwork has been a particularly popular subject for investment in the past several decades. Certain works from famous artists can command price tags in the millions of dollars. Data from Masterworks has shown that the market for paintings by Jean-Michel Basquiat, for instance, appreciates roughly 17% each year. Not every artist or painting will show steep returns, but the potential is always there.
Similar to jewelry, purchasing art can be an emotional decision, based on individual interest. However, artwork can be even more difficult to value because of its extremely subjective nature. For this reason, many collectors purchase art with the intention of supporting the artist rather than for financial gain.
Diversity tends to be an important factor in art portfolios, and collecting pieces from different eras, artists, and styles seems to result in higher returns over time. Authentic appraisals are also crucial, as they can make or break an investment. Investors in artwork can partner with major auction houses such as Sotheby’s to assist with appraisals, but many factors can shape the overall value of a piece, such as the artist, time period, and cultural popularity and relevance of the piece.
A strategy commonly seen among wealthy art collectors is charitable donations involving art. Fractional or whole ownership of artworks can be given to organizations, and this can result in a tax write-off. This can only be done with proper documentation and legal appraisal, but it can be a viable strategy at times, such as when art can’t be sold at a profit.
More than watches or jewelry, art can require an extensive understanding of market trends. Advisors can help you seek out works that are likely to retain value and appreciate over time, making them extremely helpful for navigating the world of art. They can also help you avoid common pitfalls, reducing the likelihood of purchasing overvalued or underperforming pieces.
Origins of Investing in Collectibles
Owning collectible assets as a form of investment is not a new concept. The history of buying and collecting jewelry dates back hundreds, if not thousands, of years, as members of higher society have frequently purchased and exchanged gemstones and worn jewelry to express their status. Famous artists have historically attracted collectors (particularly after their death) who sought to own pieces of the limited supply of artwork.
Luxury brands with names we think of today, such as Louis Vuitton and Cartier, began to emerge in the 1800’s, and timepieces made by these powerhouses quickly created a market for premium watches. Rare coins became a hot commodity in the early 20th century when collectors started buying limited edition pressings and misprinted coins.
In recent decades, advances in global communication enabled by technology have allowed collectors to expand their collections with ease. Online forums and marketplaces make the buying and selling of tangible assets convenient and accessible, in turn bringing light to niche collectible communities.
What about traditional investments and other kinds of collectibles?
Luxury collectible assets can often be a safe and profitable place to invest money, but how do they compare to traditional investments? The answer largely involves perception of value. A piece of jewelry can be worth a certain amount, but a motivated collector can pay multiple times the asking price in a bidding war. This is very different from stocks, bonds, real estate, and other types of assets that are tied to larger financial infrastructure.
Bullion, for instance, can be an entirely different method of investment. Gold bars or ingots have more in common with traditional stock markets than jewelry, as their value is tied to global rates rather than subjective appraisals. This makes bullion metals easier to resell, but they typically lack the potential for high returns that rare jewelry enjoys.
Mass-market collectibles, such as baseball cards, sneakers, and comics, are often talked about in the same conversation as tangible assets. These markets can produce incredible returns in some cases, but the protocol for investing in them is vastly different from the luxury goods we’ve mentioned.
Rather than structured institutions like auction houses and retailers, mass-market collectibles are appraised more informally and have different methods for purchasing them. This is not to say that the market is illegitimate, and entities like PSA and CGC provide official certifications and gradings for less common collectible items. Luxury assets also tend to be held for longer periods before reselling, whereas card and sneaker collectors tend to hold for shorter periods while waiting for narrow price cycles to come around.
Other Considerations
Budget
Before committing to any large investment decisions, it’s a good idea to set clear financial boundaries and goals. Consider the amount of money you could comfortably invest without over-leveraging yourself, and think about the length of time you’d want to hold an investment. Investors typically buy into collectible assets for personal reasons, so passion has a real place in deciding purchases. Shrewd investors tend to start collectible portfolios with smaller, more diverse purchases to gain a sense of the market. By avoiding large big-ticket purchases, you can minimize risk and retain flexibility when selling.
Insurance
When investing in expensive items or extensive collections, insurance issued by official providers can go a long way in protecting your portfolio. Did you know that most major insurance companies cover collectible assets? Collectibles and artworks can often be covered under standard homeowners policies up to a certain point.
It’s important to understand, however, that insurance coverage can be difficult to nail down for some collectible assets. For example, unique jewels with rare properties can be hard to value and therefore hard to replace, which can cause insurance providers to charge higher rates. There is also a difference between “agreed value” and “stated value”, and insurance companies are more likely to pay out for items with value that’s mutually agreed. When trying to insure collectibles, it’s always a good idea to first understand what a provider can and cannot cover.
Documentation
One of the most important things to do when buying collectible assets is getting proper documentation. Certificates of Authenticity (or COAs) can go a long way to prove the legitimacy of your asset. Sellers might find it much more difficult to complete a sale or ask for the full value of an item without proof of authenticity and ownership. Whether investing in diamonds or baseball cards, COAs can help collectors identify the quality and condition of the item.