DIAMONDS

A CUT ABOVE

IN THE business of high finance, the world of fine art auctioneering might appear a risky prospect for would-be investors. However, in recent years, with uncertainties in the global markets and poor returns from conventional investments, auctioneers have seen a rise in private customers purchasing works of art, paintings and, in particular, fine jewellery. Traditionally a preserve of the trade, in decades past auctions were not places for the uninitiated. Trade buyers dominated the proceedings, making the private purchasers feel at best unwelcome, at worst, intimidated. But times have changed, as has the balance of trade versus private, and now it may well be the informed private buyer leading the bidding in the saleroom.

So how does one get started? Life is a learning curve and the world of auctioneering is a thrilling, albeit compulsive, experience.

When buying jewellery with a view to long-term investment, here are a few pointers. AUCTION VERSUS RETAIL Buying from a high-end retailer can be a luxurious experience. You may be treated as a king, glass of champagne in hand as you select from an array of sparking jewels, offered by a smooth talking, well-dressed sales assistant. But beware, service comes at a price. Retail prices can vary from three to even five times the figures that would be paid at auction for comparable pieces. A percentage increase within the business is to be expected. However, the scale of this mark-up comes as a surprise to many.

DO YOUR HOMEWORK

Know what you are buying — if you are looking at diamonds, for instance, you should find out about the four Cs — cut, carat, colour and clarity.

Sri Lankan natural colourchange, sapphire-set ring Auction estimate: £5,000-7,000 These criteria underpin the pricing of all diamonds, so arm yourself with this knowledge.

BUY QUALITY

Aim to buy the best quality you can —a D colour diamond (the highest grade) with FL clarity (flawless) may be out of your price bracket — and indeed rare on the auction market — but set your sights high. If you are buying a diamond, choose an example including a certificate from a reputable gem-testing laboratory, confirming the gradings of the stone.

BUY CLASSIC DESIGNS

Be wary of falling for quirky one-off fashion pieces created by unknown designers — who is to say that this jeweller’s work is going to command strong re-sale prices in the future? You should opt instead for a classic style that possesses wide appeal — a fine singlestone diamond ring will never go out of fashion.

BUY SIGNED PIECES Consider buying pieces by good makers, such as Cartier, Van Cleef & Arpels or Bulgari. A ring by a sought-after maker will outsell a comparable unsigned example every time. THE BIG FOUR

Try to select traditional gemstones — diamond, ruby, sapphire, emerald — rather than lesser-known stones billed as fashionable or rare. It may seem fun to buy an unusual stone that no one has heard of but there is far less demand for these when re-selling.

UNTREATED GEMSTONES Most modern coloured stones are subject to artificial treatments to “enhance” them. Where possible, avoid these and buy natural untreated gemstones or those with only minor treatments and preferably from sought-after origins — Burmese rubies, Kashmir or Sri Lankan sapphires, Columbian emeralds.

Finally, if at first, you don’t succeed, don’t be deterred. View auction sales regularly and build up your knowledge and confidence. Knowledge is power — and the pleasure gained through learning en route will ultimately add to the joy of your investment. Who knows — you may also have caught the auction bug.

A soughtafter maker outsells an unknown every time’