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Investing in Precious Stones 101
This article should not be considered financial advice
The truth about making money with gemstones...
Gemstones typically experience appreciation in line with the rate of inflation, emphasising the importance of steering clear of unwise acquisitions. It is a fundamental rule to resist the assumption that a less-than-ideal deal today will miraculously evolve into a lucrative venture in the future. Successful gemstone investments require both patience and a steadfast commitment to a long-term perspective, coupled with a comprehensive understanding of the market.
In contrast to stocks that can plummet in value, gemstones stand as tangible assets resilient to the test of time. Their intrinsic value positions them as an excellent choice for those seeking a secure and enduring investment option. Furthermore, gems exhibit resistance to external factors like pests or market fluctuations, providing a level of stability that other investments may lack.
4 Compelling Reasons to Consider Gemstones as an Investment
1) Rarity and Scarcity:
One of the primary factors that make gemstones an attractive investment is their inherent rarity. Unlike other assets, such as stocks or bonds, natural gemstones cannot be manufactured or replicated. The process of natural gemstone formation takes millions of years, contributing to their scarcity. As the world's population grows, the demand for these precious stones increases, adding to their investment allure.
2) Long-Term Appreciation:
Gemstones, especially those of high quality and rarity, have a track record of appreciating over the long term. While short-term market fluctuations may occur, the scarcity of certain gemstones and their enduring cultural appeal contribute to their potential for sustained growth in value. This makes gemstones an appealing option for investors with a patient, long-term perspective.
3) Cultural Significance:
Many gemstones carry rich histories and cultural significance, adding to their desirability. This cultural appeal can contribute to sustained demand, making certain gemstones resilient to market downturns. Stones like rubies, sapphires, and emeralds often transcend mere commodities, becoming symbols of status, love, and celebration.
4) Versatility in Investment Options:
Gemstone investments offer versatility in terms of options. Investors can choose to own loose gemstones or opt for gemstone jewellery. The latter not only serves as an investment but also provides wearable enjoyment. High-quality gemstone jewellery, especially with unique or rare stones, can appreciate not only in gemstone value but also as a piece of wearable art.
One of the primary factors that make gemstones an attractive investment is their inherent rarity. Unlike other assets, such as stocks or bonds, natural gemstones cannot be manufactured or replicated. The process of natural gemstone formation takes millions of years, contributing to their scarcity. As the world's population grows, the demand for these precious stones increases, adding to their investment allure.
2) Long-Term Appreciation:
Gemstones, especially those of high quality and rarity, have a track record of appreciating over the long term. While short-term market fluctuations may occur, the scarcity of certain gemstones and their enduring cultural appeal contribute to their potential for sustained growth in value. This makes gemstones an appealing option for investors with a patient, long-term perspective.
3) Cultural Significance:
Many gemstones carry rich histories and cultural significance, adding to their desirability. This cultural appeal can contribute to sustained demand, making certain gemstones resilient to market downturns. Stones like rubies, sapphires, and emeralds often transcend mere commodities, becoming symbols of status, love, and celebration.
4) Versatility in Investment Options:
Gemstone investments offer versatility in terms of options. Investors can choose to own loose gemstones or opt for gemstone jewellery. The latter not only serves as an investment but also provides wearable enjoyment. High-quality gemstone jewellery, especially with unique or rare stones, can appreciate not only in gemstone value but also as a piece of wearable art.
6 Critical Insights That Deserve Your Focus
1) Invest in high-quality gemstones.
2) Exercise patience and closely monitor your market; refrain from expecting quick sales within a few weeks or months.
3) Opt for well-cut stones.
4) Focus on acquiring more popular gem varieties such as sapphires, rubies and emeralds.
5) Ensure the authenticity and absence of treatments in your stones.
6) Avoid purchasing small stones; never go below one carat.
7) Before investing, educate yourself about gemstone varieties and their origins.
NOTE: Please be aware that retail prices rarely convert into profitable returns. The imperative is to seek out wholesale sources, particularly primary dealers who engage in both mining and cutting stones. Primary dealers offer superior prices, and acquiring stones in lots rather than individually can further elevate your investment potential. The internet has ushered in a new era, making both primary and secondary dealers accessible and providing a plethora of options for astute investors.
Australian Fancy Coloured Sapphires All- Time High
And still increasing in value...
Australian sapphires, especially those extracted from the QLD Gemfields, have witnessed a consistent 10% annual increase in their prices over the past 10 to 15 years.
Moving from a price of one hundred dollars per carat to a thousand dollars per carat or more indicates a tenfold increase in a relatively short time frame. It's no secret that global markets have redirected their focus towards distinctive sapphires like parti, teal, yellow, and green, and Australia boasts a rich abundance of such varieties. With unparalleled color combinations not found elsewhere, Australian sapphires present themselves as a compelling and enduring investment. Here are some of the facts that must be acknowledged.
Moving from a price of one hundred dollars per carat to a thousand dollars per carat or more indicates a tenfold increase in a relatively short time frame. It's no secret that global markets have redirected their focus towards distinctive sapphires like parti, teal, yellow, and green, and Australia boasts a rich abundance of such varieties. With unparalleled color combinations not found elsewhere, Australian sapphires present themselves as a compelling and enduring investment. Here are some of the facts that must be acknowledged.
One of a kind
Parti sapphires stand out due to their exceptional color combinations, ensuring each stone is truly unique. The scarcity of these natural marvels enhances their value, particularly as the demand for distinct and unconventional gemstones grows within the jewellery market. With trends leaning towards personalised and distinctive jewellery pieces, the demand for parti sapphires is on the rise, propelling their market value
While parti sapphires can be discovered in various locations, it is the Australian variants that hold the most esteemed value. Similar to how Burma is renowned for its famous rubies and blue sapphires from Ceylon, the term "Parti" carries with it a distinct Australian origin, hence commanding premium prices.
The color teal has swept the world by storm...
Until a decade ago, the term "teal" wasn't even used to categorize any type of sapphire. However, today, it stands as the most sought-after colour among Australian sapphires. The origins of this sudden trend remain somewhat unclear, but it shows no sign of fading anytime soon. It is highly probable that these emerging trends are directly influenced by social media platforms, particularly visually-oriented ones like Instagram. These teal sapphires are now commanding prices as high as 4,000 AUD per carat, especially for larger and more pristine stones.
The hidden potential of the green sapphires..
Green sapphires, relatively obscure until recently, have revealed substantial potential. Despite green being one of the rarest colors worldwide, Australia possesses extensive reserves of exquisite green sapphires spanning from yellowish-green to bluish-green. Sizeable, clean stones are available for purchase at remarkably affordable prices.
Almost never mentioned is the fact that Australian Green sapphires undergo a change in colour under varying lighting conditions. They shift from yellowish green to bluish green when exposed to natural daylight. The degree of this effect varies from one stone to another, and it can be surprisingly pronounced for some individuals upon realisation. If the popularity of green sapphires continues to rise, the colour-changing phenomenon is likely to command higher prices due to its inherent rarity.
Limited Supply and Ongoing Restrictions...
Australia boasts extensive sapphire reserves, particularly in Central Queensland, where mining is predominantly carried out by small family businesses using pick and shovel methods. The process is laborious, and despite the diligent effort, there is no assurance that hard work will consistently yield high-quality sapphires.
Furthermore, escalating government restrictions, coupled with the inherent rarity of the stones, intensify the challenges of mining. Given these circumstances, the question arises: where do we proceed from here? It's evident that the current supply falls short of meeting the growing demand, a situation that will likely drive up the prices of Australian Sapphires even higher.
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