A brilliant investment: what you should have invested your money

Over the past 10 years, gemstones have risen considerably in value. Moreover, white diamonds look preferable for investment.

Experts attribute this first of all to the liquidity of these stones. In addition, emeralds and rubies have become very popular. On this basis, analysts of kalamalam.com believe that very soon sapphires will cost more than diamonds.

In their opinion, heads of jewelry companies say colored stones are really becoming more and more popular. All this will lead to a gradation in price that will correspond to the situation at the beginning of the last century. Back then, diamonds were ranked fourth in terms of value. But then the jewelry house De Beers artificially raised the price of natural diamonds.

Sotheby’s also agrees. The CEO tells us that not so long ago people were attracted by large diamonds, while now they are more attracted by colored stones. Moreover, the auction house has noticed a general increase in interest to jewellery.

Will prices for stones continue to rise?

In fact, it is difficult to give a definitive answer to this question. Right now, the diamond industry is facing some difficulties, and there is an oversupply of stones. But in the long term, things can change. After all, the industry is now developing ways to make synthetic diamonds cheaper, and there is a change in consumer behavior among young people.

In general, the production of synthetic stones will bring serious changes to the market. Their production is cheap, and there is virtually no difference from natural stones. But the production of natural stones will only get more expensive. This is due to exhaustion of the resources of the old deposits. But new ones will require large investments.

But analysts do not recommend getting rid of natural stones right now. In their view, over time, the market will be saturated with synthetics. That is when natural stones will rise in price again.

Despite the increased popularity of colored stones, diamonds are still the most liquid in terms of investment. The fact is that the demand for them is always stable. And the appeal of rubies and other coloured stones has a lot to do with fashion. As an example, we can take standard diamonds of up to 5 carats in size. Their value has not diminished throughout the 21st century, and demand has always been steady.

Investing in gems and jewellery has always been a method of investing in times of instability. Such investment methods are especially popular in the East where there are fewer reliable banks and where the political situation in many countries is not stable. It has also to do with tradition. After all, many families in the East inherit valuable property without official documents. It is in Asia and the Middle East that people most often invest in gems, as investment in commercial real estate is a very risky business.

Advice for investors

Those who have decided to invest in diamonds should listen to the opinion of experts. They advise to pay attention to standard stones weighing a few carats. Moreover, there is no need to take diamonds in jewellery or from expensive brands. This will not help increase their selling price in the future.

Also, it is worth remembering that the commission on the sale of diamonds is much higher than for securities. Dealers usually charge up to 10 per cent of the value of the stones for their services. Especially expensive jewellery will have to be sold through auction houses. They already charge 20 percent for their services.