Precious stones as an investment tool. Investments in precious stones. The procedure for buying and selling stones Investments in certified gems

Sparkling and alluring - precious stones have been valued at all times. Any representative of the fair sex will be happy with a gift in the form of a ring or necklace with diamonds, because it is not for nothing that they are called the best friends of girls. In times of crisis, people rush to secure their savings and, last but not least, investments in precious stones come to mind.

However, is it worth it for investors to be friends with them, and when is it better to invest in jewelry - this issue requires more detailed consideration.

If you decide to invest in "eternal values" in the form or stones, be prepared for the fact that this is a long-term investment. Buying and then quickly selling and making a profit on this is unlikely to succeed. At a minimum, it will take several years to return the investment and also earn on it.

Types of investment in jewelry

You can invest in stones in different ways:

• Buy finished products with precious stones;
• Invest in certified stones;
• Invest in securities pegged to the price of stones.

Buying jewelry

Buying ready-made jewelry has its pros and cons. The advantage is that such products can be worn. But if you consider them solely as a means of investment - finished products in this respect are far from the best option. After all, when purchasing such jewelry, you pay not only for stones, but also for the work of jewelers, and all kinds of other allowances. And it is not a fact that after some time, if necessary, you will be able to find a buyer and return the investment.

One option for this type of investment is buying antique jewelry. Their cost primarily depends on the fame of the master who created the jewelry.

Buying stones with a certificate

Loose gemstones are a very profitable investment. They have undergone a thorough examination in independent laboratories and in the accompanying certificate you will find complete information about the stone, down to the slightest crack and chip.

It is best to buy certified stones from well-established dealers. The ideal option is if you have familiar jewelers, then the acquired stone can be beautifully set and later sold much more expensive already in the form of jewelry. Thus, your investment in diamonds or other stones can bring tangible returns, sometimes even more than 50% of the initial investment.

Specialized calculators will help you calculate the cost of loose stones. You can find them on websites dedicated to the jewelry business.

Buying shares related to the price of jewelry

There are specialized exchanges, in particular in Israel and the Netherlands, which are exclusively engaged in jewelry trading. Diamonds are held in high esteem on such exchanges. However, it is unlikely that an ordinary person will be able to gain access to trading and track quotes - only the so-called diamantaires have access to all information and trading operations.

When to Invest in Diamonds and Other Jewelry

As a rule, the price of stones decreases significantly in times of crisis, and therefore it is worth investing in jewelry during these periods. After all, when the economic situation stabilizes, people will again have an irresistible craving for luxury goods and you can make a significant return on your investment.

Benefits of investing in gems

The main advantage of this kind of investment is reliability. Precious stones are not subject to sharp fluctuations in rates. The price for them is constantly growing, on average, the growth is about 10% per year. And if there are minor declines, they are then offset by a significant increase in the cost of stones.

The main thing is to choose the right time for this kind of investment, then the profit will be significant. After all, the cheaper you manage to buy stones, the more expensive they can later be sold.

As for jewelry, even if you don’t manage to sell it profitably, such purchases can always be left in the family as family jewelry and then passed on to descendants.

Cons of "precious" investments

As with any type of investment, there are also downsides that make investing in jewelry unattractive to many potential investors.

• Availability of large sums of money for such investment.
• Long wait for return on investment.
• There is not always a guarantee that there will be a buyer in the future.

In addition, when buying stones, you should be especially careful, because the risk of running into a fake is great. Today, it is quite common to find synthetic diamonds on the market, which can only be identified with the help of a thorough examination.

Where to sell stones

When investing in jewelry, the logical question is where to sell the stones. There are several options:

• jewelry stores;
• pawnshops;
• jewelers - collectors;
• specialized auctions.

The first two options should be used only as a last resort, since in this situation you will be able to help out for jewelry, most often mere pennies compared to their real value. But access to gem auctions or acquaintance with jewelry collectors promises considerable benefits.

Save

But in times of crisis and with the development of inflation, devaluation, even a person with huge money bags suffers. At such moments, it is wise to invest in "eternal values": precious metals and stones. Which can be profitably sold when the economic situation normalizes and people again have a desire to purchase luxury goods. The price of precious stones (diamonds, brilliants) falls during the crisis. Investing in gemstones can be very profitable. But, you need to understand that such a long-term. And an important point is the right choice of the moment of buying and selling precious stones. In total, there are three options for investing in precious stones.

1. Investment in gemstone jewelry

2. Investment in certified gems

3. Investments in, which are tied to the price of gems

Stay up to date with all important United Traders events - subscribe to our

Gemstones are high risk but high return investments. Hence, one must be careful before investing in expensive gems. Here are some pros and cons of investing in gemstones to help you make the right decision. Gemstones that have less value value more over a period of time. Therefore, you should invest in gems that are not too expensive, as it will be easier to find a buyer for them in the market. Many people invest in gemstones as they are highly profitable investments. The price, especially for gemstones, can be very high, thus allowing for a decent profit.
In addition, these investments tend to be stable and hence the preferred choice for many investors. However, there are certain risks. For example, there may be a devaluation in the value of precious stones if they are not properly manufactured.

It can also be difficult to tell genuine gems from fakes unless you have a trusted gemologist on board. Hence, there is an urgent need that you should be aware of the risks and benefits of investing in gemstones. Here is a list of the pros and cons of investing in gems.

pros

No price fluctuations
Gemstones are not subject to extreme volatility and price fluctuations like stocks. Hence, when you buy a gemstone, you don't have to worry about the price going down.

Increase in value
You have the option of cutting the stone into smaller versions or using it to make jewelry. You can also polish the stone. All this will increase the value of your assets.

High stability
Regardless of market conditions, the demand for gemstones never wanes, so this makes for a viable investment. Hence, if you are looking to invest in something that will rise steadily, such as gold, gemstones may be your investment option.

Portability
You can carry stones in your pocket. Gems are very portable and you don't have to worry about safety as you would when transporting gold bars from one place to another.

Immunity to the economy
It is often said that gemstones are one such investment that continues to rise in price regardless of economic conditions around the world.

Durability
Gems are relatively durable and will not change easily over time. They also do not crack and are not easily scratched. They are not affected by climatic conditions or exposure to air, like silver.

Minuses

Knowledge required
You must have knowledge about gems before investing in them. This is because you don't just blindly believe someone who tells you about the value of the stone. You will have to figure this out for yourself to avoid undervaluing or overvaluing gemstones when selling them before you buy them.

Safety is an important issue
You can't just pick up and take gems from one shop to another to sell them. Just imagine if someone is watching you closely and can steal them from you, then you could end up with absolutely zero value.

Long term investment
You will have to keep the gems as a long term investment in order to sell them at the right time. Therefore, if you have an urgent cash moment, unlike stocks or gold, you will not be able to get the right price if you plan to sell gems urgently.

Fraud Chances
Many gemstone sellers, when selling to interested buyers, may sell substandard or counterfeit gemstones and charge the price for the same. This makes investing in gemstones a risky proposition.

Low liquidity
It is very difficult to find buyers for gemstones as they do not trade like gold or diamonds. Also, they do not have an international market. Hence, they have very low liquidity.

Storage complexity
Since gemstones are tangible assets, you will need to make sure you store them in a safe place or bank vault. If you store them in your home, you may lose your gems in case of theft or robbery.

Damage
If the stones are polished and well cut, they can be sold for better prices than their untreated versions. However, the issue with gemstones is that they can splinter and shatter into shards during the process of grinding or cutting. Hence, they are more risky to break the stone.

Devaluation
If the stone is cut in an unprofessional way, you can lose on its value. Poor workmanship on a gem can cause its value to drop and you end up losing money.

If you want to process the stone, it will be an additional cost. Providing an investment return is the same as the expense you make for the gemstone. You should always buy gemstones from reputable manufacturers. It is recommended that you check the gems and their value with at least two or more professional gem appraisers who can appraise them. Now that you know the pros and cons of investing in gems, make sure you make the right investment decision.

Our verdict: instead of investing in other natural stones, it is better to invest in gold or diamonds as they offer less hassle to the buyer.

As with any commodity, the prices of stones depend on the combination of supply and demand in the market. But, unlike gold, stones are not created by nature the same. In addition, prices are affected by:

• political situation
• wars
• scientific developments and

Investing in gemstones requires a good level of expertise - knowledge and research.

Given these risks, investing in stones is a profitable business. Moreover, if buying “ordinary” gems like rubies, sapphires and emeralds will provide you with excellent investment potential, then investing in rarer and less popular stones sometimes brings even more income.

Ideally, gems intended for investment purchases should be at least 2 carats in weight and rated "above average" for color, cut, clarity, strength, provenance, and rarity.

For a group of the most famous gemstones in the world (rubies, emeralds, sapphires and alexandrites), the average cost of a stone should be at least 3 thousand US dollars. The reason is that less expensive stones are likely to be too “ordinary”, and an “investment stone” must be rare and valuable (more on the criteria for the value of jewelry stones).

Stones such as spinels, rubies, sapphires, emeralds, blue tourmalines, tsavorites, demantoids and alexandrites may well be considered for investment purposes. Over the past 30 years, they have shown good upward trends in prices, and the value of some of them (for example, spinels, demantoids, tsavorites, alexandrios and Paraiba tourmalines) has increased over this time by more than 20 times.

If you are investing in stones for the first time, investing in blue sapphire is the safest, but also the most expensive venture. Sapphires historically have the most significant value. They are strong, hardy, and will be highly valued if they are large enough to be considered rare.

Prospects for investing in diamonds

Oleg Khanukaev, president of the African Mining Company (AMC) diamond mining holding, assessed the prospects for investment in diamonds in an article published by RBC. According to the expert, precious stones can become effective way capital preservation due to low price volatility, ease of acquisition and storage.

Diamonds are not forever: is it possible to invest in precious stones

The Russians began to massively buy diamonds - the demand for precious stones grew rapidly. Obviously, this is how people try to invest money, but experts warn: investing in precious stones is doubtful...

Gemstones - investor reviews and comments

Well, I have essentially a similar program, just not precious stones, but precious metals. I invest through Sotsagrofinance. I like that the interest is high, and you can receive them monthly, even if the contract is concluded for the maximum period. The only drawback in the company is the office, guys, well, one office for such a large country, with your volumes!! And nuka, expand))), in fact, it’s not very expensive for me to drive a car, but for Rostov or someone else it will already be far away. But I think it's a matter of time, they will definitely expand soon

"A girl's best friend is diamonds" - "Diamonds Are a Girl's Best Friend" was how Marilyn Monroe sang in the 1953 film of the same name with the musical. But here, like all other gems, not the best friends at all. Although for whom it’s like ... In the world, in general, they firmly occupy the fifth line, and in North America and Australia - in third place.

The status of “eternal values” has firmly entrenched behind precious stones: the world can collapse, money can depreciate, and diamonds will rise in price. In the mind of the layman, with a head full of jewelry advertising, gems are actually a synonym for guaranteed profitability. But a closer look at this tool reveals that they fight back extremely slowly - for decades. Therefore, the vast majority of investors-speculators will not be interested.

In fact, everything is much more complicated: different gems - different price dynamics. And even more difficult: in the same size, different characteristics of a diamond - different price dynamics.

Among cut diamonds of all quality characteristics within the same size, on average, cut diamonds weighing 3.00-3.99 carats are characterized by the largest price increase: 17% (for the entire array of stones) and 19% (for all stones, except for I2-I3). However, stones of other sizes lagged behind 3-carat ones a little: their price growth was 14-16% and 16-19%, respectively…etc. and so on. Every year is a mass of figures for analysis. Again we come to the conclusion that the most important thing in investing is to become a professional, first of all.

But besides diamonds, there are other gems . On popular colored gemstones, starting 1960 , assuming the best quality stones, the following change in prices was observed:
— Pigeon blood ruby, 1 to 10 carats . The pigeon blood ruby ​​is the most expensive of the colored gemstones. The price of a ruby ​​has increased by 7 times - this is a lot if you remember about the order of ruby ​​prices. The cost of a ruby ​​depends more on the origin of the stone and the ways of its delivery, and less on the quality of the stone.
— Star ruby ​​with pronounced asterism and good color, from 1 to 10 carats . The popularity of this type of ruby ​​is growing every year, especially in the United States. The cost of a star ruby ​​has increased 14 times, and now it is only slightly inferior to a simple ruby. The range of market prices is very large.
— Emerald bright green "grassy", from 1 to 10 carats . Although the popularity of the bright green emerald is declining somewhat, the demand for emerald remains ubiquitous. The cost of a bright green emerald has increased 6 times.
— Sapphire bright blue "cornflower blue", from 1 to 10 carats . The cost of bright blue sapphire has increased by almost 45 times! The range of prices for bright blue sapphire is also large, and depends on the region of extraction and intermediary sellers.
— Good color star sapphire with well-defined asterism, from 1 to 10 carats. The popularity of star sapphire is also steadily growing, with the cost increased by 20 times. There is also a wide range of prices for star sapphire.
— Alexandrite with a good color reverse, from 3 to 10 carats. The cost of alexandrite has increased 25 times. It should be noted a very large range of prices for alexandrite.
— Tourmaline green (verdelite), from 5 to 15 carats. The popularity of green tourmaline is growing, the leader in price growth, has risen in price by 67 times! at the same time, the situation on the market is unstable - there is a large variation in prices for green tourmaline, approximately 10 times.
— Tourmaline red (rubelite), from 5 to 15 carats. Tourmaline red has also risen in price significantly - 30 times, the price range is huge.
— Demantoid, from 1 to 10 carats. Demantoid from year to year becomes more and more attractive to buyers due to its brilliant brilliance, as well as the discovery of new rich African deposits. The cost of the demantoid has increased by 20 times.
— Opal noble, from 1 to 10 carats. Opal noble has risen in price by 14 times.
— Topaz, 5 to 15 carats. Topaz is notable for its dramatic increase in popularity around the world. Topaz has risen in price by 20 times. The spread of prices for topaz is practically not observed.
— Aquamarine blue, from 3 to 15 carats. There has been a decline in popularity for aquamarine blue, but now demand is stable. The cost of aquamarine blue has increased 6 times.
— Tsavorite, from 1 to 10 carats. In terms of purity and color, tsavorite competes well with emerald, but is inferior to it in hardness. Great growth in popularity for tsavorite in the last two decades. The price of tsavorite has increased by about 20 times, has a large market price range again due to the growing popularity of tsavorite among many dealers.

It is very important to remember: For example, in Russia, investing in cut diamonds is more like playing roulette. There is no secondary diamond market in Russia. Trade in certified diamonds between individuals is not provided, this is a violation of Russian law. For a private trader, the only legal option for selling a stone is a pawnshop or a jewelry store, there are no other ways. Well, a pawnshop is a direct path to losses - they will give you only half the cost of a diamond, at best. In a commission, you determine the price yourself, the whole question is when you receive the money. Your stone may be bought tomorrow, in a year, or they may not be bought at all. Shops do not even buy stones sold from them, and diamond auctions in which private traders could participate are not held in Russia. So because of the problems with the sale, all profitability forecasts become meaningless, because even if prices rise, it is possible that in the end you will sell the stone for less than you bought it. You can try to sell diamonds in Europe and the USA, there are no legal restrictions on buying and selling diamonds, but how to find a buyer... I will publish open and legal sources to find contacts. Yes, and do not forget: a stone without a certificate will be bought from you at a significant discount. The more globally quoted certificate you provide, the less reason the buyer will have to drop the price.

The cost of which is tied to .

Some features of investing in jewelry:
1. The history of precious stones goes back hundreds of years. At the same time, despite the new technologies in the processing of stones, high-quality stones have not undergone fashion trends.
2. Gemstones are not suitable for short investment periods. If we are talking about income, then we should be patient for decades.
3. Precious stones, in addition to their investment value, also have very attractive aesthetic merits. Moreover, they can be used without harm to them, unlike things such as furs, furniture, cars. Stones can be worn in jewelry. The main thing is to properly care for them.
4. Quality gemstones are timeless. Gemstones are small in size, so they are easy to move, store and display.
5. You should not save on the examination of stones, check their authenticity, quality, in order to find out their real value. The gemstone can also be packaged in a so-called security pak - packaging with tamper-evident protection.
6. Precious stones are an illiquid investment instrument. This means that you should take care of the sales channels in advance. The easiest way to find clients for stones or jewelry is those who work professionally with them: jewelers, suppliers, gemologists.
7. Each of the precious stones has its own price growth dynamics. Before buying gemstones, it is always necessary to familiarize yourself with the state of affairs in the market. It is important to note that you cannot find official world statistics, as in the diamond market. There is no monopoly on colored gemstones, because the demands are as multifaceted as the stones themselves.

Based on materials: prostobank.ua, diamanters.ru, gems.com.ua and others.

Good luck with our investment!