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A certified Gem Professional and NLP Practioner, Abijita talks about the necessary requisites to pursue a business dealing with precious stones and gems.
It is a common pursuit to try and make money earned, to work harder and yield handsome returns; be it by way of asset creation – immovable property, land etc, or buying gold or by investing in attractive stock options and mutual funds. There is an old adage that goes – "Christians put their trust in words, Jews in precious stones, and pagans in herbs" and there is no doubting who the frontrunner in creating wealth is!
Gemstones have been a preferred way of squeezing a large pile of cash into the most compact asset that can be carried in a pocket—a veritable asset whose value has only increased going by the historical data. Historical values of colored gemstones suggest an exponential increase in value. While diamonds have been marketed well and have become a well known investment proposition, colored gemstones are relatively lesser known but pack in more punch than the sparkly diamonds, their gravity defying per carat sale values overshooting diamonds by several notches. Just to cite an example, an unheated Burmese Ruby of 8.62 carats sold for $3.62 million at Christie's in 2006 and set a new world record price for an unheated Burma ruby at $420,000 per carat!
Even though this is BIG number, from where collector's grade gems trade at, natural gemstones offer a handsome investing opportunity for many.
Is investing in gemstones an option for you?
A gemstone that is at least above 2 carats of weight is a contender for the investment category and must command a market value of over $3000. It has to have the rarity factor soundly addressed in order to be able to guarantee handsome returns over a period of time.
Precious gemstones are a very attractive investment option if one is a connoisseur or are an aesthete with a taste for finer things. It appears to be the best option especially when tremors in any of the areas - fluctuating value of dollar, Real estate, Precious metals, Bonds and mutual funds - gives you the jitters. Gemstones are a product of nature that takes hundreds of millions of years to form – it is not a created-on-demand product but a rare, precious, durable and incredibly beautiful one that promises wealth, fortune ownership and a notional gain as well (usually an outcome of owning jewels, expensive art etc.)
What one needs to know?
One has to be an extremely aware and astute buyer when it comes to purchasing of gemstones, especially of the really expensive variety.
- Buying from a trusted vendor is the first step and it should be backed with running checks on credentials and history. Establishments with brick and mortar offices reaffirm faith of the buyer in a big way.
- A fair knowledge of gemstones – itself is a big advantage.
- Independent lab certifications – from reputed gem labs can ensure in a big way that one is getting one's money's worth – natural precious gems.
- A gemstone chosen for buying should be fairly rare – while emeralds, rubies and sapphires easily fall in this category, many semi-precious gemstones like amethyst, citrine, garnet etc. are available more widely, command a relatively lesser price and therefore may not be investment worthy
Pitfalls
Wherever there is big money or profits, there are equally big chances of fraudsters lurking around, waiting for a quick fortune! Only natural, treatment free gemstones qualify for being investment grade gemstone. Treated gemstones, synthetic gemstones and imitations are often sold by attaching myths or alluring sobriquets. For instance, a water sapphire is an Iolite. It is not a blue sapphire! "Evening emerald' is a peridot and not an emerald! Risk is proportional to return and even though gemstones offer high returns, they are also risky investment unless and until, there is guidance from expert gemologists!
FAQs
Do your homework. Your best prices will come from primary "Tier 1" dealers, those who mine and cut the stones themselves. Secondary dealers buy from other wholesalers (usually primary dealers) and resell them, still well below retail. In addition, you'll get better prices by purchasing lots rather than single stones.
How do I start investing in gemstones? ›
Do your homework. Your best prices will come from primary "Tier 1" dealers, those who mine and cut the stones themselves. Secondary dealers buy from other wholesalers (usually primary dealers) and resell them, still well below retail. In addition, you'll get better prices by purchasing lots rather than single stones.
What are the risks of investing in gemstones? ›
Types of Risks in Gemstone Investing
Liquidity risk: the risk that you can't resell your gemstone when you want or as fast as you want. Time horizon risk: the need to sell sooner than you would like because of an unforeseen event.
Is it worth it to invest in gemstones? ›
Gemstones are an excellent way to diversify the portfolio and reduce risk relative to other investments because, as a long-term investment, they do not fluctuate as much as gold, stocks, or bonds. The performance grows over time, the longer the investment horizon the higher the return.
What are the four C's of gemstones? ›
The "Four Cs" of gem grading stand for color, clarity, cut, and carat (weight).
Do gems go down in value? ›
A gemstone is a long-term investment, and since it does not depreciate in value, it's a smart investment to keep for a rainy day.
Is it better to invest in gems or gold? ›
Both precious metals and precious gems make worthwhile investments. Investing in either is simply a matter of preference. However, diamonds not only last forever, but they're also more expensive than gold. Generally, the wealthy possess the rarest diamonds.
Are gemstones hard to sell? ›
Are gemstones hard to sell? While the amount you get for your gemstones will vary depending on the type of stone, quality, size, and cut, it is not hard to sell gemstones for money, either online or in person. Diamonds USA buys loose gemstones of all sizes and values.
What are flaws in gemstones? ›
While flaws generally refer to the natural issues a gem has - inclusions and fractures most often - they can also be created by errors made by the lapidarist including polish marks on the surface, poor cut or lack of symmetry. Not all inclusions are considered flaws, however.
Do cheap gemstones work? ›
You may get a low quality gem or a duplicate / fake gem for more money and may buy a High quality gem for much less than what its actually worth.. Cheap and expensive is not the factor which influences the effect of a Gem. It's the quality of the GEM which determines how well it will work for the wearer.
What is driving the increase in gem prices? The scale of the change in the value of colored gemstones that occurred in the last year (2020–2021) compared to 10 years ago is unprecedented, especially for high-value rubies, sapphires, and emeralds.
What is AAAA in gemstones? ›
The system marks quality gems with an “A”, very good quality with “AA” and truly outstanding quality with “AAA”. Quality refers to the beauty and intensity of colour, transparency of the stone (generally the more transparent, the higher the quality), and finally the quality of the cut.
What are the big five gemstones? ›
The Big Five gemstones are Diamond, Sapphire, Emerald, Ruby, and Tanzanite.
What are the three hardest gemstones? ›
Of all the gemstones out there, diamond is the hardest with a Mohs rating of 10, while sapphires (Mohs 9) and rubies (Mohs 9) come in second. Emeralds have a good hardness rating but has poor toughness due to the excessive inclusions they tend to have.
Can you make money from gems? ›
Gemstones That Make Money: Reliable Options
Tourmaline: all colors, almost always a moneymaker for me. Garnet: always sells well, as long as the stones aren't too dark. Beryl: aquamarine and emerald are the two primary commercially popular varieties, but there are others.
Can I make money cutting gemstones? ›
At the low end, in a week, you have five stones to sell for $750 gross. If you only net half (and you'll likely net more), you make $375. Of course, this doesn't count any wear and tear on your laps and other costs, but it's not too bad. You could also gross $2,500 a week, maybe more, depending on what you cut.
