Gems Sparkle Even In Recession

Published on 21/09/09

IT'S said diamonds are a girl's best friend, and it seems even a recession can't change that.

The country's auction houses are reporting bumper sales of expensive jewellery, fine wines and rare books, as the cashed-up decide to enjoy the fruits of their labour or ensure better returns on their money.

Webbs in Auckland says jewellery sales turnover for January to August is up more than 40% on the same months in the previous three years.

"It flies in the face of the recession and was a trend that I noticed very early in the year," says Chris Devereaux, Webbs' jewellery consultant.

The high prices he has seen include $142,000 for a five-carat, emerald-cut diamond, one of the most expensive stones sold at auction this year.

"Gemstones and precious metals are portable and have international value," Devereux says. "In times of recession people seek solid investments jewellery will always return some value whereas with shares or bonds, people can be left holding a worthless certificate." Gold prices traditionally boom in times of turmoil.

A variety of other factors have also resulted in robust sales art and antiques often have a much more regionalised value and the logistics behind transporting them mean they cannot be quickly moved and cashed up. Many bidders also have cash in the bank earning a poor interest rate and have decided to treat themselves instead. A bidder who recently bought a 2.5-carat solitaire diamond ring at auction said: "We felt that our money wasn't really working for us in the bank and just decided it was time to enjoy it."