For a few years now, friends and acquaintances are always asking me, “Cuini, can you tell me if its worth investing in gemstones?” I always find it difficult to answer because I am not an expert on the stock market or in investing, but I have compiled my thoughts on the matter in this article for you. Hopefully this helps any of you who are wondering the same thing!
Point One: What do you expect from an investment?
This is a key point. If you want to make money quickly with an investment do not opt for gemstones. We know the golden rule in the game of investment: the higher the risk, the higher the gain is more painful … and also the fall! Nobody can predict what happens with investments but one thing is certain: investing in gemstones only gives long term results, and it a safer choice than most other investments. There are many factors that cause value growth and very few negative ones. Long term in this case means no less than ten years.
Point Two: Which gemstones are worth buying?
There is no ideal gem to invest in, but there are certain things to guide you before making an investment purchase. A gemstone set into a gold piece of jewellery will be easier to sell. Keep in mind that the gems that have great market value will rise to a lesser extent than those with less market value.
For example, Diamonds will steadily increase in value over time, but undoubtedly never greater than 10% per year. Let us not forget that Diamonds are found in almost every continent, this stone is very famous and in very high demand which can be met by the very large supply that exists.
Opposite to this example, Tanzanite is forecasted to have a 200% increase in value over the next three years. This gem is as popular today as Diamond but is only found in a single mine in the world. No one knows how much longer Tanzanite gems will be found and so this gem becomes scarcer and scarcer. So when choosing specific gems to invest in you should be looking for good quality, rare gems.
Another good example is Alexandrite, which has a rising value of 25% annually in good quality specimens. Tsavorite is also a coveted, top quality gem that has been increasing steadily in value since it was introduced into the gemstone market.
Point Three: You can see and touch it
For those who are not experts on stock exchange transactions, it is important to know that gems are an affordable wealth. Purchased and then stored in the bank, in a safe deposit box or under the mattress (the latter option is not recommended!) this investment is not abstract, it is not documents of intangible assets. This is an important factor for some people, for other irrelevant. One thing is certain: in the case of a possible explosion of the market price, you will have the gem at hand, it can immediately be resold, in person and without mediators if deemed necessary.
Point Four: The pleasure of the collection
Not many other investments, and certainly not stock exchange transactions, give us the same visual pleasure as a collection of gems. If I do decide to invest in precious gemstones, I will choose gems that I can actually use. I can not only show them as a collection of valuables but also as something beautiful. Gemstone collections give us pleasure, we are led into worlds otherwise unknown to us. We can discover unique gems such as Red Andesina and we feel the need to learn more and dive deeper. Red Andesina is a Feldspar which is transparent and clear, a trait which is not so common in other feldspars. It is found in very few places int he world and the specimens from Congo are the most coveted. A passion for gemstones helps when collecting and making investments, we can choose stones more carefully to our liking.
Investing in gemstones purchased in good quality and at reasonable prices will secure long term profits. It is important to note the steadily increasing value of rarer gemstones and not simply looking at the big four, Diamonds, Emeralds, Rubies and Sapphires. The only problem I can see investing in gems is that the bigger and more beautiful your collection becomes, the sorrier you will be to get rid of it!