Heirlooms Can Be Liquid Assets August 13, 1998 – Posted in: Press
By ELLEN PRITSKER
Published: August 13, 1998
Skyline News
If you’ve read any national periodicals lately, you’ve probably seen Chicago’s Tobina Kahn, of House of Kahn, quoted in connection with the trend of selling family heirlooms as liquid assets. Here, Kahn explains this emerging financial phenomenon.
-Interview by Ellen Pritsker
Q: What is the state of the antique and estate-jewelry market now?
A: Business is up at least 30 percent in the past four years. People now see their family heirlooms as a liquid asset. They are bringing them in for cash to make other kinds of investments. We pay cash for the things we buy and my clients appreciate that. A diamond necklace that has been in a safe deposit box for years can be sold and the money invested in stocks, bonds, or CDs. And we have lots of buyers for the things Americans are selling. Europeans are buying, they love the American-made items, and they also want to reclaim the wonderful pieces originally created in their own countries.
Q: What were some great periods in the history of jewelry?
A: Jewelry has an illustrious history: during the Georgian period-the reigns of King George the first through the fourth, men and women wore lavish jewelry featuring gemstones mounted in silver, and set in gold. This period began in late 1714 and ended in 1830 with Victoria’s reign which in jewelry inspired “the language of flowers”. Romance and sentiment were reflected in elaborate settings featuring amethyst, opals, garnets, ivory, diamonds and even human hair. At the turn of the century, art nouvea’s flowing sensual lines were translates into sculptural shapes such as butterflies, dragons, and swans mead in unusual materials like glass, ivory and enamels. The Edwardian Period- 1905-15- heralded the Industrial revolution and great prosperity for a growing middle class. Jewelry boasted excellent materials and workmanship ad we find many diamond pieces, exquisitely mounted, along with pearl dog collars, bangle bracelets and bar pins.
Next came Art Deco- the Roaring ‘20s- with colorful pieces combining diamonds with carved rubies or emeralds. This was the era in which Boucheron and Cartier first worked their magic. From 1935 until 1950 we find that the Hollywood glamour look replaced delicate workmanship-think of the heavy dramatic pieces worn by movie queens like Greta Garbo or Joan Crawford. The period from 1950 to the present I describe as “Estate Jewelry” that is, all previously owned jewelry. A major designer of this period was David Webb.
Q: When someone comes in to Sell a Piece, how do you set a price?
A: There are some mathematical formulas. The price reflects the carat weight of the stones, the hallmark, or signature – French is particularity valuable – and also the type of metal that is involved. A platinum setting and large, good diamonds are very desirable. The formulas for value are affected by the market for a piece as well- for example, we just purchased an Art Deco diamond bracelet for $10,200 that we will offer as part of a collection of similar bracelets. I consult with my family before deciding what something is worth. I test the metal, examine the stones and even take a photo and fax it to them in Palm Beach.
Q: What is your Background?
A: My parents opened two shops on North Michigan Avenue in the 1960s and they concentrated in fine estate jewelry. In 1972, they moved to Palm Beach and established their main location there, although they kept a Chicago presence. I adored the shop, I would come home from school and watch my mother helping the people that came in. In my teens, I loved to work there, meeting people, absorbing everything. I love jewelry and hold a degree in Gemology. It was inevitable that I would stay in the family business and I continue to learn from my parents.
Q: What is your role now in the Chicago office?
A: I came back here from Florida several years ago, and I serve as a resource for many Midwestern clients. But when someone comes in with a piece, after I appraise and study it, I will still confer with my family before setting a price. I’m responsible for making the assessment and luckily, I’ve never been wrong, never thought a stone or metal was real or precious that later turned out not to be real.
Q: Again, what is Estate Jewelry?
A: The owner does not have to be deceased. The term refers to pieces that are sold by the owner rather than by a store. It can be sold by the heirs, by the original owner, or by a bank or trust attorney.
Q: Do you do a lot of business with Banks?
A: We work with banks a lot, when they are closing on an estate. Also, many clients as me to come to their safe deposit box at the bank to appraise a piece because they don’t want to move it around. I can work with them on-site, if necessary.
Q: How do you decide if a diamond is really a diamond or platinum is really platinum?
A: I have a very skilled eye, along with the ability to use tools. In fact, on client brought in what she thought was a synthetic sapphire, expecting to sell it for around $100. I studied and appraised it and told her it was genuine and worth $20,000. She was thrilled and thanked me over and over for my candor. But our business is built on integrity and I would never conceal that kind of information from a client.
Q: Do you only purchase large, expensive jewelry?
A: Absolutely not. We buy things under $500, 00. Last week I bought a small pair of gold earrings with a diamond in them. We also have been buying sterling silver serving pieces and flatware. The older silver pieces are very valuable. The market price of raw silver has been rising, it valued at $3.80 an ounce last summer and now it is selling over $6 dollars an ounce. In Palm Beach, we have a huge collection of silver, which we are amassing to offer to a large collector- perhaps even to Warren Buffet. There are Europeans interested in a lavish entertaining style as well, who are showing interest in the very ornate pieces.