Is Luxury Jewelry Worth the Price? A Breakdown of the Factors That Affect the Price (2024)

Luxury jewellery is often seen as a status symbol, and it can be very expensive. But why is luxury jewellery so expensive?

There are a few reasons for the high price of luxury jewellery.

First, the materials used to make luxury jewellery are often precious metals, such as gold, platinum, or diamonds. These materials are valuable and rare, which drives up the price of the jewellery.

Second, luxury jewellery is often made by skilled craftsmen and women. These craftsmen and women use specialized techniques and tools to create intricate and beautiful pieces of jewellery. The time and skill that goes into making luxury jewellery also drive up the price.

Third, luxury jewellery is often marketed as a status symbol. People who buy luxury jewellery are often seen as successful and wealthy. This gives luxury jewellery an added value, which also drives up the price.

Many know that branded jewellery and items are usually priced higher for the price than it takes to manufacture them. But do you know how much really you are overpaying for the brand?

Let us talk about the facts.

An Example

An excellent example of this would be the Cartier Love bracelet, a popular and iconic piece of jewellery that is one of the most searched pieces of jewellery in the UAE, and is known to be very expensive and a sign of wealth.

This close-fitting oval bracelet is an 18K Gold set with 4 round cut diamonds weighing a total of 0.42 carats. On research from various sources, we can assume that the details of the Gold and the Diamond are the following:

Gold Value

Weight: 32.4 g

Diamond Value

Color: G

Clarity: VVS

Calculations

With these details, we were able to calculate the price of the love bracelet.

Considering the current Gold Rate.

1 Gram 18K – AED 182.250 ($49.62)

32.4 Gram 18K – AED 5905 ($1607.63)

For diamonds, there is a common misconception of exactly how expensive diamonds are, as well as the investment value they hold. You can read more about that here: But for this article, we will specify the Rappaport Price which is a list of diamond prices that Diamond Dealers have access to.

Diamond Value

1 Diamond – AED 238.75 ($65)

4 Diamonds – AED 955 ($260)

The next thing to consider is the manufacturing costs. With the value coming to be between 5 – 10% of the material. Taking an average of 7.5% would result in AED 514.5 of design and workshop costs.

After adding together all the components it comes to a total of

AED 7,369 or AED 7,400

The Real Value

The Real Value of the Cartier Love Bracelet is AED 7,400 ($2015).

Now for the amount of money Cartier charges – AED 45,400.

This means you pay AED 38,000 just for the brand name in itself.

This video would talk more about the difference in retail and actual prices of the diamonds- https://youtu.be/rQHGZdqgWH4

These bracelets are considered to be symbols of wealth and luxury and everyone scrambled to attain that status. Replacements for this bracelet with similar-looking ones have emerged in the market where everyone is now having a Love Bracelet. Once considered a rare item is now owned by the majority of the public making it lose its exclusivity. This raises the question of- what is the true sign of wealth and status.

True Sign of Wealth and Status

Not everyone can afford luxury jewelry. But for those who can, it can be a way to show their wealth and status. It can also be a way to express their personal style and taste.

The new attributes of wealth are not watches or expensive jewellery. You have to be smart and realized that wealth is not spending all your money on a piece of jewellery that, when it comes down to it, has no resale value and in the end, not an investment piece. What you pay for in retail stores is triple the amount of the actual cost, and these same retail stores will not take your pieces back.

Often times our clients have tried to resell the jewellery that they have bought from retail stores only to discover that they are not able to resell it for even close to the same value. This is not something new but often times people forget just how much overpriced these jewellery pieces are. As a diamond trading company, we are constantly surrounded by these stones and are shocked at how much they are being sold for and how much people are willing to pay for it when they will end up in a loss.

Invest smart, and this is how you can do that.

What should you buy instead of branded jewellery? As wealth and investment experts who have been in the luxury and retail industry for over 15+ years suggest anyone move towards exclusivity and items that will hold their value over the years.

Natural Fancy coloured diamonds are exactly this. They maintain their value over time and are a hedge against inflation. Coupled with their ease of transportation and emotional pieces they are the perfect form of investment assets to have to diversify one's portfolio.

Read more about investment in diamonds: https://www.linkedin.com/pulse/important-questions-ask-when-diversifying-your-investment

As it is a form of a long-term investment asset you have to consult an expert in the field before considering it as part of an investment strategy. Feel free to book a call with our team for a free consultation to discuss: https://www.glaze-diamonds.com/getaquote

Conclusion

Ultimately, the decision of whether or not to buy a Cartier Love bracelet is a personal one. Some people are willing to pay a high price for the status symbol and the quality of the craftsmanship. Others may find the price to be too high, and they may choose to buy a similar bracelet from a different brand.

We want to hear your opinion. Would you still opt for the Love bracelet knowing the price point or would you rather choose exclusivity and select options that offer quality and real luxury?