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Investing in Gemstones
For centuries people have held gemstones in high esteem. They have been appreciated for their beauty, valued for their rarity, and revered for their metaphysical powers. Many people purchase gemstones for use in jewelry but since the beginning, they have been held for investment purposes as well. With today’s volatility of the dollar, and depreciation of real estate values, many people are seeking long-term investment in gemstones. To decide if purchasing loose gemstones for investment is the right move for you, it is important to understand the benefits and drawbacks, as well as the buying process.
The time frame for investment in loose gemstones is variable, depending on whether you prefer a stable or an aggressive portfolio. If you favor stability, you should be prepared to be patient and make a long-term commitment. Investing in older loose gemstones like diamonds and rubies is not like investing in gold, hoping to see a quick profit. It is much more like investing in real estate and staying in for the long term. If you prefer to be more aggressive and seek stones with limited availability, such as Winza Ruby, Sphalerite or Sphene, you should prepare a portfolio with a three to five year time frame and be prepared to update the gemstone mix annually.
Traditionally, gemstone values increase with inflation and can be a fairly safe place to store your wealth and there is always the unforeseen chance of a sudden upside. For example, when the source of Tanzanite dried up, the gemstone became instantly more valuable allowing investors in the stone to turn a quick and very handsome profit.
To make the most of your investment, it’s important that you buy several steps below retail. Purchase your loose gemstones from a dealer that buys directly from the mines and lapidaries to ensure that you receive the best price. If possible, let them know that you are planning to create a gemstone portfolio and they may be willing to give you even more aggressive pricing. Be sure, however, that you are buying from a reputable source, internet technology has made it easier for fraudulent gemstone sales to occur. Make sure you trust your dealer, that they offer a money-back upon inspection guarantee, and that they will also provide a 'market' for you when you are ready to sell a gemstone or liquidate your portfolio. It is much easier to resell your loose gemstones through the source where they were purchased, because they already know the stone, and won’t require the expense of a gemological survey.
In order to be successful investing in gemstones, you owe it to yourself to become well versed in the Four C’s of stone selection and the colors and types of stones on the market. Learn how to self-evaluate the stones you invest in and read gemological books. If you do not have this knowledge or wish to avoid spending countess hours researching gems, seek out a trusted dealer that takes the guesswork out of your purchase. Someone who evaluates the stones for you and knows what the gem buying market is looking for. The dealer should also be able and willing to help you turn your loose gemstone investment into jewelry, as this often adds even greater worth to the value of the stone. If you follow these guidelines, do your research, and trust your instincts, purchasing loose gemstones for investment can be a very safe and effective way of growing your money.
The time frame for investment in loose gemstones is variable, depending on whether you prefer a stable or an aggressive portfolio. If you favor stability, you should be prepared to be patient and make a long-term commitment. Investing in older loose gemstones like diamonds and rubies is not like investing in gold, hoping to see a quick profit. It is much more like investing in real estate and staying in for the long term. If you prefer to be more aggressive and seek stones with limited availability, such as Winza Ruby, Sphalerite or Sphene, you should prepare a portfolio with a three to five year time frame and be prepared to update the gemstone mix annually.
Traditionally, gemstone values increase with inflation and can be a fairly safe place to store your wealth and there is always the unforeseen chance of a sudden upside. For example, when the source of Tanzanite dried up, the gemstone became instantly more valuable allowing investors in the stone to turn a quick and very handsome profit.
To make the most of your investment, it’s important that you buy several steps below retail. Purchase your loose gemstones from a dealer that buys directly from the mines and lapidaries to ensure that you receive the best price. If possible, let them know that you are planning to create a gemstone portfolio and they may be willing to give you even more aggressive pricing. Be sure, however, that you are buying from a reputable source, internet technology has made it easier for fraudulent gemstone sales to occur. Make sure you trust your dealer, that they offer a money-back upon inspection guarantee, and that they will also provide a 'market' for you when you are ready to sell a gemstone or liquidate your portfolio. It is much easier to resell your loose gemstones through the source where they were purchased, because they already know the stone, and won’t require the expense of a gemological survey.
In order to be successful investing in gemstones, you owe it to yourself to become well versed in the Four C’s of stone selection and the colors and types of stones on the market. Learn how to self-evaluate the stones you invest in and read gemological books. If you do not have this knowledge or wish to avoid spending countess hours researching gems, seek out a trusted dealer that takes the guesswork out of your purchase. Someone who evaluates the stones for you and knows what the gem buying market is looking for. The dealer should also be able and willing to help you turn your loose gemstone investment into jewelry, as this often adds even greater worth to the value of the stone. If you follow these guidelines, do your research, and trust your instincts, purchasing loose gemstones for investment can be a very safe and effective way of growing your money.
Submitted on: December 09, 2009 @ 5:29pm
Tuesday 
