Investor Guidelines For Investing in Gemstones

Investors who purchase gemstones at wholesale prices – primarily by eliminating middlemen, or who can purchase in volume rather than individual stones, have a much better chance of earning a sizable return on their gemstone investment.

For less experienced investors, here are a few guidelines for investing in gemstones, as well as some valuable insight into how you can earn a modest profit with less associated risk:

  1. Purchase the very best stones you can find. Pay very close attention to the color, clarity, cut, and size.
  2. Seek out low to moderately priced gemstones. Why? Lower cost gems often appreciate more in value and are easier to liquidate.
  3. Never buy a gemstone encased in plastic. It important that you are able to examine a stone to determine its refractive index, specific gravity, and other characteristics. This is necessary to get a positive identification of the stone.
  4. Whenever possible, seek-out the advice of an experienced gemologist. Some jewelers are “academically trained” gemologists who can provide expert advice.
  5. Learn as much as you can about gemology. This will provide insight on how to identify and evaluate the natural and artificial gemstones you encounter. The more you learn, the more you earn.
  6. Be patient. Without the help of experienced gemstone investors, finding the best quality gemstones at a reasonable price is difficult. Locating willing buyers when you are ready to sell can be equally difficult.
  7. Take advantage of ideal opportunities when they arise. Many gemstones do not have steady supply and appear in the marketplace for only short periods of time. A great example of this is Alexandrite. A sizable deposit uncovered in Brazil a few years ago temporarily flooded the marketplace, but since that time supplies have been scarce.
  8. If you intend to use your gems in custom jewelry, employ an expert jeweler. Be sure the jewelry is well-made, and designed in such a way that it not only protect the stones, but also allows for the proper care of them.
  9. Take very special care of your gemstone investments. If your gems get damaged, seek-out the services of an experienced gem-cutter, and determine if they can be properly repaired.
  10. If investing through a gemstone investment firm, inquire as to whether they offer a buy-back guarantee.

With traditional investments creating growing concern for investors, many investment-seekers want investing opportunities that will help them regain control of their financial future. Given their proven reliability, it has been hard assets – like gemstones – that have emerged as an appealing alternative.