It is a commonly used and accepted term for a collection of jewelry and other such luxury accoutrements. Its use is typically (in my experience) used a bit dismissively to describe someone else's collection of such items. To me, it is not a positive word but not entirely negative, either.
Honest truth, I don't like it. It just sounds old fashioned to me. Note: it's funny how there's more comments than votes.
"Swag" means "hip", "fly", "cool" and similar things. Personally I think it sounds ghetto and ignorant... Just my opinion...
When I hear "Swag" I immediately think of Gene Kelly and Fred Astair, the original swaggers. I refuse to acknowledge all this modern crap that tries to associate with this word and come even close to those monuments of swag