Gemstone Investment – Investing in a rock hard asset
Smart investors are turning profits whilst gold and currency prices crash. Coloured gemstone investment has proved to quietly appreciated in value, substantially increasing the value of investors’ portfolios.
Since the beginning of time, people have always cherished beautiful, sparkly objects. Along with gold and Diamonds, coloured gemstones have always been something that has held intrinsic value throughout generations.
How to approach a gemstone investment:
- Buy gemstones at wholesale prices. Find someone in your local area who deals in gemstones or search the internet for gemstone prices
- Only buy from someone you trust. Preferably a Gemologist who can guide you in your purchase and who can assure you what you are buying is real
- Buy untreated gems. The gemstone market is made up of 99% treated gemstones, and 1% untreated. Untreated gems are rare and hold their value much better.
- The only difference between a collector and an investor is their exit strategy. Think about what a collector would do. If you like Rubies, perhaps consider collecting a range of untreated Rubies from different locations. For example Mozambique, Burma and Thailand. A collection like this is worth more than a single Ruby.
In recent times, the gold standard has become controlled and exposed to the fluctuations of modern economics. In 1902, De Beers began controlling the Diamond industry by producing 90% of the world’s Diamond supply. Now days, the Diamond price is dictated by the traders based in Europe and New York.
Meanwhile, coloured gemstones have been quietly achieving a growth in wealth for those that own them. Even during the global financial crisis, coloured gemstone prices continued to increase at a steady rate. Coloured gemstone investment strategies are highly sought after because these assets are uncorrelated, meaning they are not affected by global finance as much as other assets.
Why are coloured gemstones so different to Diamonds? The global Diamond business is largely controlled by huge companies such as De Beers and intensely tracked by investors on Wall St. However, the coloured gemstone world is made up of small scale miners and adventurers who explore some of the most dangerous and underdeveloped places in search of gemstones. It is these gemstones that are so rare and so beautiful, that always attract the attention of discerning buyers.
Coloured gemstone investment can seem very difficult, but in the age of the internet, finding someone who can offer a purchasing service is becoming increasingly easier. Gemstone investment is now termed as a “passion investment”. These investments inspire your imagination and your portfolio. In this day and age, people are so disconnected from their investments. Most of the time when you invest in gold, you don’t get to actually have the gold in your possession. The connection between investor and asset has diminished. An investment in a beautiful coloured gemstone, like a Sapphire or Ruby, recreates that connection. It is an extremely portable source of wealth and it can be admired.
Right now, the world is in turmoil. Currency is fluctuating largely every day, Europe is in crisis, America is returning to power and gold and silver prices are falling. Last month, an independent investigation into Diamond grading has revealed that different authorities grade Diamonds in different ways. This has a huge impact on the price of Diamonds and as a result, Diamond prices have remained steady this year.
Coloured gemstones are an investment that is not only becoming more accessible, but it is increasingly becoming more attractive.
Come and visit us at the Sydney Trading and Investment Expo at the Sydney Convention Centre between the 19th and 20th of July.