WHY INVEST IN GEMSTONES?

gemstones

WHY INVEST IN GEMSTONES?

 Gemstones represent a particularly worthwhile investment, and regardless of economic or fashion trends, there are some gems that can be assumed to have continuous price increase over several years. 

 These include some of the best-known coloured gems Ruby, Sapphire and Emerald, but also Gemstones such as  Tanzanite, Tourmaline and Aquamarine.

 

 Huge investment opportunity

 Coloured Gemstones represent a huge investment opportunity.

They are non-volatile and have a steady demand, unlike other physical committees that are also frequently used as a financial hedge against inflation between 2021, inflation grew by 7% and 2022 saw inflation hit 9% in the USA  .

Gemstones are not traded on the stock markets and are not subject to panic selloffs like gold and silver saw in the 2008 financial crisis a massive selloff markets shut to limit the losses.

gemstone investing chart

 

Historically gemstones investment performance

Regarded as precious since their discovery, gemstones have been used as a store of wealth and a symbol of status by royalty and nobility for more than 5000 years.

Natural coloured gemstones are very rare and high quality examples even rarer still and it is this that drives the relatively stable price growth.

 

 Over the past 20 years, coloured gemstones have seen steady growth with Ruby, Sapphire and Emerald which have increased in value by 5-8% per annum since 1995.

With some particular rare and fine example fear exceeding this, according to Gemological Lab Austria (GLA), one ruby was valued over 19% higher in November 2021 compared to its initial valuation in September the same year.  

 

Long live the king  

 Diamond is the most well-known gemstone, but it no longer represents the huge investment opportunity it once did as newly discovered mines in Russia and Australia, which are not controlled by De Beers, have put downward pressure on prices and with the arrival off widely available lab grown diamonds calming a increasing market share adding further pricing pressure.

Like gold and silver diamonds have seen unstable prices during recent financial crises.

 

 

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