Why to invest in precious stones?

Precious stones have always been known for their beauty and believed by many to have healing powers. Various gemstones have been used throughout the history by people with different financial status. Either as talismans, religious symbols or as decorations.

However, the most famous use of precious stones was as a symbol of a person’s status. Because of their relatively limited quantity, royal families have worn jewels adorned with precious stones for as long as we can remember. They demonstrated wealth, rank and power.

Nowadays gemstones are used for many of the same reasons as they were thousands of years ago. But there are significantly more ways to enjoy these wonderful gifts of the earth than just jewelry. People like to invest in gemstones as a means of securing wealth and as an insurance policy against inflation. No wonder why. Dating back up to 5,500 years, gemstones are the oldest commodity in the world and hold more historical and cultural significance than probably any other investment option.

With the creation of shares, bonds, mutual funds, etc. precious stones have taken a back seat in the world of investing. Maybe because they are so ingrained in our history and culture that people have forgotten what they really bring. After all, precious stones have the highest concentration of value, even higher than gold, and can bring great returns.

How are gems valued?

Gold and gems are both tangible investments, but the key difference is that there is no fixed value for the weight of gems. There are several classifications that create an accurate valuation of colored gemstones, starting with four basic values: color, clarity, carat and cut. The same standard is used for diamonds, but there are other indicators that are used exclusively for colored gemstones – namely processing and origin. All these factors significantly affect the valuation.

Currently, there are two systems for determining and developing the prices of colored gemstones – they are GemGuide and Gemval. The former focuses primarily on wholesalers and jewelers, while the latter calculates retail market prices.

The value of a gem consists of three criteria:

– Intrinsic value (market or business value)

– It´s aesthetic value (subjective, mostly optical value)

– It´s historical value, if any

Precious stones can be compared to art, but the main difference is that they have a much higher intrinsic value. Aesthetic and historical value can have an additional impact on valuation. As an example Kate Middleton’s engagement ring, which previously belonged to both Princess Diana and Queen Victoria.

If we look purely at the intrinsic value of the stones and materials themselves, we may only get a fraction of what the ring was sold for at auction for its aesthetic, but especially historical value.

How do investors invest in gems?

Gemstone is a long-term investment, and since it does not depreciate in value, it is a wise investment to keep for rainy days. Our clients either design a personalized unique piece of jewelry together with our specialists from brand SOLOOM, for which they also receive a gemological certificate. Or they invest in our company’s shares, thanks to which they get a lot of interesting benefits and especially an interesting appreciation of their investments.

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