Gems as an Investment
The Coloured Gem Market
The world’s supply of natural gemstones is limited as to what already exists. No more can be made, as it takes millions of years to create a gemstone naturally. Many of the large producing mines of the world are already mined out, or nearly so. Although there are new discoveries, even these are limited supplies and will eventually be depleted. As the world’s population increases, so will the demand. Once it was only the elite that owned gemstones, but now everyone wishes to own (and can afford) natural gemstones. As we move into the future, we see natural coloured gems appreciating in value and forming a solid part of any structured investment portfolio.
||Bloomburg Business Article - Exert April 2015: " For colored stones, prices often increase with supply as jewelers acquire enough stock to justify marketing the gems to customers. Take regular emeralds: their value has appreciated 1,000 percent in five years as Harebottle’s Gemfields Plc and peers expanded mines, while marketing campaigns fronted by Hollywood star Mila Kunis gave demand a boost."
The trading of stock can result in the loss of all its value, all due to circumstances beyond your control. A gemstone as an investment is a tangible hard asset, small enough for safe storage, and have intrinsic value that appreciates during years of storage. This puts the control of your investment in your hands. A commodity can fluctuate in value, as we've seen with gold which despite the hype can take a nose dive. This does not happen with gems as the rarity of quality stones increases over the years, as does their value. Recession times have only increased the price of precious gemstones such as emeralds, sapphires, and coloured diamonds.
Coloured Gems are the New GOLD….
- Small and easy to store – unlike stocks, cash, or real estate and other traditional forms of investment; valuable gems are conveniently small in relation to their cash value. Just imagine: a gem worth $10 million could fit in the palm of your hand! This makes Precious Gemstones the ultimate investment vehicle for non-detectable and easily kept assets.
- Private and anonymous investments – currently, transactions related to precious stones do not require reporting to government agencies, as long as long as you’re a private owner and not a precious gem dealer. This means you can invest in gems without having them listed as part of your public records. Private investors can store precious gems wherever they wish, be it a bank vault or a personal safe. This is ideal for investors who want to keep their assets safe from prying eyes.
- Investment gems don’t easily fluctuate in value – unlike stocks and mutual funds that require regular checking to keep your money afloat and earning, precious gems command a stable value in the market, and can save you the hassle of constantly checking the stock market and moving your funds from one stock to another.
As we know, today’s economy is facing high levels of inflation, and this trend is expected to continue. For this reason, investing in gems isn’t just a good idea, it’s a critical long term strategy for wealth preservation since their values don’t plummet like stocks and other traditional investments. Even when the price of high quality white diamonds fell by 20%, coloured gems not only held their own, they appreciated in value.