What gem is the best investment
Investing in Gems and jewelry has been identified as one of the most profitable ways to preserve and grow capital. Financiers recommend considering their acquisition as a tool for profitable investments. In what minerals are experts who are well versed in the trends of gemology and jewelry art advising to invest in finances in the next five years?
Investing in Gems: Colored diamonds
Yuri Shelementyev, executive director of the Gemological Center of Moscow State University, at a conference where financiers and scientists discussed the feasibility of investing in precious metals, expressed the opinion that rough diamonds are still one of the most profitable. The cost of raw materials is growing at a much faster rate than diamonds.
The expert recommends investing free finances in blue and pink copies. He is convinced that it is the fancy color diamonds that will remain the most liquid in the jewelry market over the next decade.
One of the most expensive is the legendary Hope diamond. Experts estimate it at 350 million. It has an impressive weight of 45.52 carats. What caused the high prices?
It depends on two points: every year the number of mines where multi-colored diamonds are mined is getting smaller; are found in nature infrequently (of the mined only 0.001% are considered by experts to be fantasy).
It is believed that Argyll will be closed already in 2020. This Australian deposit is the main supplier of pink diamonds to the world jewelry market. Argyll is a special place. The diamonds that are mined at the mine have low volatility.
Because of this, the prices for them are pleasing with stability no jumps were recorded. Another indisputable advantage of them: in comparison with classic colorless diamonds, they are not included in the Rapaport price list. This means that no one is holding back the financial appetite of investors, they have room for buying and selling. The diamond market is not threatened by a depression. Statistics show that the price of fancy color diamonds has increased by 280% from 2000 to 2019. And on Fancy Vivid Blue it increased by 360%. Let’s compare this with investing in antiques or real estate. Prices for the purchase of luxury apartments in the UK during the same period rose by 175%.
Rubies and sapphires
Shelementyev singled out corundums from colored stones. He believes that investing in rubies and sapphires will generate significant returns. Colored monoliths that have been refined using heating technology are highly appreciated by connoisseurs.
In terms of increasing capital investment, other upgrading options are not considered economically viable. 20-carat heated corundum they ask for 320,000. For one carat, you need to pay 16,000.
For unrefined corundum, the price tag per carat starts at 150,000. The highest recorded price for a carat of unrefined sapphire is 125,000. Shelementyev recommends buying rubies from Burma, and sapphires from Kashmir experts consider them very promising for investment.
Shelementyev also focused on rubies that are mined in the Montepiez mines in Mozambique. Now they are quite affordable. The specialist says that in the next three to four years, production at this field will be completed, as a result, their liquidity will soar several times.
From the point of view of increasing capital, such a mineral as spinel is also interesting. At first glance, it looks very much like a ruby, but it has completely different properties. It is rather difficult to determine the country of origin, so it does not matter in which deposit the spinel was mined, this practically does not affect the formation of the price per carat.
The largest deposits are located in Myanmar, Tajikistan, Sri Lanka, Brazil. The color scale is not important either, but still red Burmese and blue spinels are more promising. The cost per carat has increased three to four times over the past five years.
It is a natural mineral that regularly rises in value. When it comes to price, Chinese dealers make a spectacular gesture: a confident wave of the hand up. So they clearly demonstrate the rapid rise in prices in the jewelry market of this mysterious stone, which looks like jade. In India and China, jadeite was treated with special reverence because of its unique healing properties. For investments, it is recommended to give preference to “imperial” an emerald green translucent version of jadeite.
Pearls Another mineral that gemologists advise investors and collectors to look out for is pearl. The world’s oceans are becoming more and more polluted, this formation is a kind of indicator of the state of the planet. In order for a pearl to grow that meets the standards, several prerequisites are required: the purest seawater of the right temperature, the required amount of oxygen.
Another mineral that gemologists advise investors and collectors to look out for is pearl. The world’s oceans are becoming more and more polluted, this formation is a kind of indicator of the state of the planet. In order for a pearl to grow that meets the standards, several prerequisites are required: the purest seawater of the right temperature, the required amount of oxygen.
Experts have come to a consensus that natural pearls will be mined less and less every year. Therefore, its cost will also increase. Experts drew the attention of investors to the fact that the demand for species is changing. If recently Akoya were the undoubted leader, now the situation has changed: the first place in sales is occupied by pearls of the southern seas. The price of Tahitian black pearls is also steadily going up.
The dangers of investing
Exclusive gems bring high returns for long-term investments. But we must not forget about the possible dangers. Basically, the risks in the jewelry business are associated with the acquisition of raw minerals. The fact is that the cost can not only increase several times, but also significantly decrease if it becomes necessary to subject the raw materials to industrial processing.
Another common danger is the purchase of a synthetic analogue instead of a natural one. This is especially true for pearls and rubies. Modern technologies make it possible to produce artificial duplicates that even experienced jewelers cannot identify without special equipment.
The safest way to invest in colored stones is to buy standard size jewelry that is used in mass production of jewelry. An important tool for reducing the possible risks associated with the acquisition of multi-colored minerals is gemological expertise. The use of standard devices does not give a 100% guarantee that unscrupulous hucksters will not slip an artificial copy to the buyer.
Especially jewelry that is already integrated into a piece of jewelry needs additional research. Expert analysis is required to be sure of the profitability of the transaction being made. For greater objectivity, at least three specialists are involved in the assessment. This gives the buyer confidence that he is investing in the stone, which can later be profitably sold or passed on to heirs.