When thinking about investments, stocks, property and gold usually come to mind. But what about gemstones? These natural treasures, admired for their beauty and history, are increasingly seen as potential investments. But are gemstones a good investment? Let’s explore the key factors influencing their value and why they appeal to investors.
Burmese Rubies & Kashmir Sapphires have increased in price, maybe 20 to 30 fold in the last 30 years.
They are truly an incredible investment if one is able to procure the FINEST goods, as opposed to commercial items.
1. Rarity and Demand
Rarity is a major factor in a gemstone’s investment potential. Gemstones like Burmese rubies and Kashmir sapphires are scarce and as mines deplete, their value tends to increase. The growing demand for untreated, natural stones further boosts their worth. High-quality rubies, sapphires, emeralds, and diamonds remain popular and hold their value well.
2. Quality Is Key
The value of gemstones is based on the "Four Cs" (cut, colour, clarity, and carat weight). Gemstones with exceptional colour and clarity, particularly untreated ones, are highly prized. For example, deep blue Sri Lankan sapphires or "pigeon blood" Burmese rubies can command impressive prices. Certification from a reputable gem lab is also crucial to guarantee authenticity.
3. Portable and Durable
Gemstones are a portable form of wealth. Unlike property or art, they are small, easy to store and transport. Additionally, gemstones like diamonds, sapphires, and rubies are durable, making them ideal for long-term investments. When properly cared for, they can last for generations, retaining their value over time.
4. Market Fluctuations and Liquidity
While gemstones can appreciate, the market can be volatile. Prices fluctuate based on trends and economic factors, and selling them at full market value can take time. As such, gemstones are often better suited to investors with a long-term outlook rather than those seeking quick returns.
5. Diversification
Gemstones can be a valuable addition to a diversified investment portfolio. They act as a hedge against inflation and economic instability, retaining value as a tangible asset. For those with an established portfolio, adding rare, high-quality gemstones can enhance diversification.
6. What to Look For
If you’re considering gemstones as an investment, keep these tips in mind:
Certification: Always buy certified gemstones from trusted labs like GIA or GRS to confirm their authenticity.
Rarity: Focus on rare, untreated stones with excellent clarity and colour.
Expert Advice: Consult gemologists or experienced dealers to ensure informed purchases.
Long-Term Vision: Gemstones are typically a long-term investment, so expect to hold onto them for several years.
Conclusion: A Worthwhile Investment?
Gemstones are an incredibly unique, tangible and worthwhile investment. With their rarity, beauty, and historical significance, gemstones can be an excellent way to preserve wealth over the long term.
Whether you’re looking to invest or simply add a beautiful gem to your collection, gemstones hold enduring value that transcends financial gains. Interested in exploring our range? Contact us at +44(0)20 7831 3650 or email us at anthony@sicoint.net to discover more.
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