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The intrinsic value of jewellery, gold and diamonds

Unlike money, jewellery, gold and gemstones such as diamonds have stood the test of time. In many famous museums you can find antique jewellery, items made of gold and gemstones dating back to as early as centuries before Christ that look so intact that they seem to have been made just a few centuries ago.

One example of very ancient goldsmithing is that of the Varna civilisation, near the Black Sea, which was found as early as 4560 - 4450 BC. It is believed they were one of the first cultures to develop goldsmithing techniques. Graves were found containing more gold than what was discovered in the rest of the world dating back to that period.

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Why have jewelry, gold, and diamonds remained valuable throughout human history?

Unlike traditional currency, precious metals and gemstones have maintained their worth across millennia, combining both emotional and financial value. Archaeological discoveries, like the Varna civilization's goldwork from 4500 BC, demonstrate how these treasures can survive intact for thousands of years. Jewelry pieces often become cherished family heirlooms, carrying personal stories and memories across generations while maintaining their physical integrity.

Beyond sentimental value, these items serve as stable investment vehicles. They offer protection against financial risks, currency fluctuations, and inflation. Diamond and gold prices typically show long-term growth due to supply and demand dynamics. Designer pieces can gain additional value as antiques over time. This dual nature - as both emotional keepsakes and financial assets - makes fine jewelry, particularly those containing precious metals and stones, an enduring store of value throughout human civilization.

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What we mean by "intrinsic value"

Intrinsic value for jewellery is the part of a piece's worth that comes from measurable, physical qualities rather than sentiment or a designer premium. Practically speaking this means the material content - the weight and purity of the metal, and the carat and certified quality of any diamonds - together with the workmanship that affects durability and potential resale. Intrinsic value therefore describes what a jewel would be worth if valued mainly for its gold and stones and for the skill used to make it, not for the story attached or the label on the box.

As an example, a gold pendant with a known weight contains a calculable amount of metal whose market value moves with the gold price; retail asks are often higher because of fabrication, design and retail margins. Understanding intrinsic value helps buyers judge resale prospects and the likely long-term worth of a piece, and it clarifies the difference between material-backed value and emotional or brand-driven extras.

Emotional value

Jewellery, gold and diamonds are timeless and durable. These are precious objects that are purchased or given as gifts for special occasions. They are passed on to future generations carrying along with them the stories of the people that wore them, adding emotional value to even the simplest piece of jewellery.

The emotional value is often stronger than the financial value, because humans are romantic at heart. People just love happy endings, stories of lost love or new beginnings, and jewellery, gold and diamonds can provide you just that. Precious pieces of jewellery can be passed on through generations and remain intact, they often become the last piece that reminds you of that one person or that one special occasion. 

Intrinsic vs extrinsic value — what differs?

Intrinsic value refers to qualities that belong to the object itself: the metal, the gemstones and the workmanship that set a piece’s baseline worth. Extrinsic value covers factors outside the object, such as a brand name, current fashion or the social signalling a piece provides. Emotional value sits mainly on the extrinsic side, driven by memories and personal meaning, while financial or intrinsic value is rooted in material content and market recognisability. Spotting this difference helps when deciding whether you are buying a jewel for sentiment, for potential resale, or for a mixture of both.

Financial value

The financial value is of course very important, especially when jewellery, gold and diamonds are being purchased as an investment.

Should you consider buying commodities to diversify your investment portfolio, these 3 commodities are an excellent option. They provide the best protection against credit risks of financial institutions, currency fluctuations and inflation. Moreover the law of supply & demand indicates structural increases of diamond and gold prices on the world market making them very important potential contributors to your investment portfolio.

That is why jewellery also makes an overall perfect investment as it will always be possible to sell it easily for its gold and stones if need be. And should the piece of jewellery be an original piece made by a known designer, it will hold even more value over time as an antique designer jewel.

BAUNAT has an extensive catalogue of beautiful designer or classic jewellery that would make the perfect gift for any occasion. BAUNAT is also a worldwide reference for diamond investments with its in-depth knowledge of the diamond supply and demand market. 

Which factors determine financial intrinsic value?

Several concrete elements drive the material-backed value of a piece. First, material content: gold weight and purity and diamond carat and certified quality form the baseline. Second, craftsmanship and rarity: hand finishing, traditional techniques or limited production can add a durable premium beyond metal and stone content. Third, the resale channel matters: auction houses, specialist dealers and secondary markets each produce different net prices after commissions and fees. Finally, market conditions - global demand for gold and diamonds, currency moves and overall economic sentiment - influence how easily and for how much a piece can be converted into cash.

Two brief examples

  1. An 18Kt gold chain sold to a secondary buyer. A well-made 18Kt necklace with noticeable weight will be valued mainly for its gold content by many secondary buyers, who typically offer a percentage of the spot metal value after accounting for melting, refinement or resale margins. A well-crafted piece of 18Kt or higher generally retains stronger intrinsic resale value than lower-purity alternatives because the metal content and durability are better preserved.
  2. A diamond engagement ring kept as an investment. A certified diamond with higher carat and recognized grading will usually keep stronger intrinsic value because certificates and scarcity make resale clearer to buyers who know the market. In practice, resale outcomes depend on certificate recognition, the cut and the liquidity of the market at the time of sale. Industry reports from recognised observers show that while retail prices include design and retail margins, material-backed components tend to follow broader gold and diamond market trends over time.

Putting it together

When assessing jewellery as an investment or store of value, separate the material-backed intrinsic value from extras such as branding and retail margins. That gives a clearer expectation of resale dynamics and helps decide whether a piece is being bought mainly for its long-term material worth or for personal and emotional reasons.

  • Fabienne Rauw

  • BAUNAT Antwerp

  • Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six  years of experience at BAUNAT she acquainted well with the product and the marketing around it. Her degree in PR ensures that BAUNAT is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

    Selected Bespoke Projects

    • Eternal Bloom bespoke engagement concept - Role: project lead for client briefing and prototype coordination. Fabienne translated personal design references into a 3D-printed prototype, supervised stone selection and ensured the finished piece matched the client’s vision and comfort preferences.

    • Personalized anniversary necklace - Role: design coordinator and quality overseer. She managed the custom design process from the initial sketch to final polishing, liaising between client and workshop to preserve proportions and finish.

    • Reimagined heirloom ring restoration and redesign - Role: client consultant and technical coordinator. Fabienne guided the client through options to modernize setting details while keeping sentimental elements, delivering a wearable result that respected the original piece.

    Her hands-on involvement in bespoke commissions ensures each custom order has a clear brief, careful prototype review and close follow-up with the workshop, so clients receive a tailored jewel that meets both aesthetic and practical expectations.

    Professional enquiries

    For speaking engagements, press requests or research collaborations, please send your message to BAUNAT’s communications team with the subject line: "Fabienne Rauw  -  Professional Enquiry." Include a brief description of the request and any relevant dates or documents. The communications team will route enquiries to Fabienne and provide guidance on next steps.

Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six  years of experience at BAUNAT she acquainted well with the product and the marketing around it. Her degree in PR ensures that BAUNAT is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

Selected Bespoke Projects

• Eternal Bloom bespoke engagement concept - Role: project lead for client briefing and prototype coordination. Fabienne translated personal design references into a 3D-printed prototype, supervised stone selection and ensured the finished piece matched the client’s vision and comfort preferences.

• Personalized anniversary necklace - Role: design coordinator and quality overseer. She managed the custom design process from the initial sketch to final polishing, liaising between client and workshop to preserve proportions and finish.

• Reimagined heirloom ring restoration and redesign - Role: client consultant and technical coordinator. Fabienne guided the client through options to modernize setting details while keeping sentimental elements, delivering a wearable result that respected the original piece.

Her hands-on involvement in bespoke commissions ensures each custom order has a clear brief, careful prototype review and close follow-up with the workshop, so clients receive a tailored jewel that meets both aesthetic and practical expectations.

Professional enquiries

For speaking engagements, press requests or research collaborations, please send your message to BAUNAT’s communications team with the subject line: "Fabienne Rauw  -  Professional Enquiry." Include a brief description of the request and any relevant dates or documents. The communications team will route enquiries to Fabienne and provide guidance on next steps.