If you are an Investor - this page is for you
When a smart investor looks at an asset or a commodity, it looks for various factors which we will be going in depth about. I myself have been an investor all my life. Just that its been a professional investment in my business instead of just short term or long term investments. Lets now see the factors that make Gemstones, especially with our company Gems and Coins, the best investment you or your company will ever do.
Return on Investment
The return on Invesment or the ROI is the most important factor for the Investor, but not all the figures that are shown or promised are real. Some of them are, some of them arent. Believe it or not, I will today disclose the biggest secrets and real time figures of the investments I have done over the past years and how that has benefitted my bank balance and what not. On this page we will try to keep the figures as accurate and real as possible.
The return on investments in Gemstones have been mixed. Depending on whether you choose Diamonds, or a Flawless Blue Zircon will be your personal choice. But we will discuss real things, so lets get started.
Diamonds are a type of gemstones, but they have always had "constant returns" with very limited risk due to high sales volume. The bigger something is, the more spread out the power and risk is, which means no one person can control (Devalue or Value) the price to an extent which it affects the prices of that Gemstone. Where as Diamonds are the "safe haven" of gemstones, they still posess quite a high risk, as markets are so diverse for Diamonds, but still major buyers remain the same: USA, Japan, Russia, China. 4 countries that have dominated the buying of Diamonds in the last decade or so. China is the fastest growing consumping country for Diamonds and recently the prices for 1 carat - 2 carats and 2 carats above that have hiked, guess why? The chinese customers like IF Diamonds with D color that are 1 carat and above. They are buying the top notch quality, smart investors, and so the prices have gone up, ofcourse the country that holds 13 billion people? What if you invested in a 2 carat Diamond, paid 30,000$ for it and realized that the prices have dropped because the Chinese market crashed? Just like how the prices for VS-SI stones crashed in 2013? And either way, if you are looking to invest in Diamonds, I do not suggest you to be being on this website, surely you can read, but you might be a person who wants to invest $100,000 in one stone which isnt possible in gemstones, except the Superb 13.31 carat Paraiba tourmaline Cushion we have in stock.
Let me shine some light on Gemstones Investment. Gemstone Investment was started by the Americans in the late 1900's, when America grew and people got richer over years of time, they didnt know what to do with their money. They had property, they had land, they had stocks, they had companies, they had invested their money in their business. Whats left is commodoties. Gold, Diamonds are safe investments. Gemstones are something that are risky but if you play it safe, you can pull it off. Does anyone remember what happened a few years back? The American government posed sanctions on Burmese ruby and Jade and many other items from Burma due to various reasons.
Real time examples of Gemstones
- What was the price of a 1 carat Pigeon red clean Ruby from Burma, 1,000$ per carat? What is it now? $5,000? If thats how much the prices have increased in 5 years, with atleast 100% increase every year constantly, what makes you think this trend will stop?
- Tourmaline: Firstly Paraibas, what happened? x10 increase in a span of 3-4 years? Prices out of the roof? The chinese had their roles in this, the chinese realized that Blue-green-neon was a killer combination for Chinese investors and buyers' eyes', and the price didnt matter all of a sudden. They bought whatever was produced and everything that was produced. Chinese have always had the connection with tha name "Tourmalines" anwyays because of its history connection. The chinese queen, few hundread years ago, fell in love with Pink tourmaline and asked her army to go get all the Pink tourmaline in this world. We know this because of the Stuart Lithium tourmaline gemstone mines in Pala, Califonia, was bought out in the middle of its production of Tourmalines as all the Pink tourmalines were sold while the Americans focused on the Lithium in their mines instead of the "rocks"
- Emeralds have been the biggest product in all of 2013, being named the "Gemstone of the year 2013" in response to "Green - the color of the year 2013". After the disclosure of the Fracture filled cases in the early 21st century, the prices took a dive, market for Emerald crashed because Emeralds were never understood to be treated with Fracture filling.
Liquidity of the Investment
How liquid an investment is, is a very important factor when considering when there are many different types of investment schemes in your mind. Gemstones are quite a highly liquid asset, I dont say this because we sell gemstones but because it is how I started my business. I invested in gemstones and when I did, Liquidity was a very important factor and thats when I decided so. We say Gemstones are highly liquid because if you have the right item, it is easy to sell it over to anyone, it might be a wholeseller, a retailer or a individual person. We say the right item, as in Gemstone, we mean the Gemstone that is going up in price as well as low in supply as well as high in demand. That is the perfect economic situation for an investor. That is what is happening with Gemstones all around the world as mother earth starts to get exhausted with how much it can give to Mankind.
Once there is high demand, it is always easier to find a buyer for that produce, given that the supply is not abundant. You might even have buyers come upto you to buy it off you and you can choose the highest bid and go for that. The ball is in the sellers court.
Another very important factor which makes Gemstones highly liquid are its high awareness worldwide. Gems have a long history and with that said, people are much more aware of Gemstone names, properties, uses, some price ideas. Once there is a global awareness, it becomes the invested gemstones much more easier to sell. Try selling Pigeon red rubies or Sleeping beauty turquoise, you will get more than any number of buyers you might have seen. Or even Paraiba tourmaline.
Risk and return
Where there is risk, there is return. Thats the norm of Economics. Gemstones are a high risk and high return investments. Diamonds are low risk and low return investments. The best way to judge this is by the actual numbers that reflect on the above statement claimed by Economist. Some gemstones are quite a very "safe" investments in Gemstones that can still give high returns, for example Ruby. Red is a color that will never die, no matter what happens, people will always have love and Red Pigeon blood ruby symbolizes that. Thats why Ruby will always command the highest prices, since its always in demand, its a safe investment as there is no risk in it, due to the stability of the demand of this Precious Colored gemstone.
On the other hand there are gemstones that are high risk and high return too, such as Blue Zircons, Rubelite Tourmalines, Saphires, Lapis lazuli, Turquoise.
Long term Investments in Colored Gemstones - the key is to buy and forget you ever bought it
It makes a big difference if you are looking to gain high return in the long term. For that purpose as an investor you should buy gemstones that are not selling right now and that have a great history. For example: Iolite Gemstones. These Iolites arent very high in demand but in the past have bought by everyone. Iolites are now pretty lowly priced, according to us, as we tend to monitor prices from all over the world, so once this Iolite comes back in trend, it will shoot up back in price. In order for these long term investments to pay off, you have to wait 3-4 years. You might be able to pick up a Good color of Iolite for 300$/carat right now, but once the price shoots up which can be "anytime" (its important to understand that its not 3 - 4 years guranteed, but it "can" be that at the maximum) or it might even take a few months for price to jump from 300$/carat to 600$/carat. Luck of the draw, and someone who understands colors, trends, fashion, jewellery, gemstones can definitely say which colors are likely to go up. Each year the "Color of the year" changes, last year it was Emerald green, this year it is Amethyst Royal Orchid. Next year it might be Tanzanite Blue, or Vivid Pink? Who is to say.
Here are some of the best Long term investments in gemstones:
- Yellow colored stones: Citrine & Yellow Sapphire - these yellow stones' prices are half of their actual prices right now as they are not working for designers and jewellers but like 3 years ago when Madeira Citrine, Palmera citrine became famous and before that when Yellow sapphires were sparkling in the best Jewellerys stores around the world, you never know.
- Stones that have reached their peak prices and will steadily give a good Return ever year. Such stones include Sleeping beauty top quality turquoise strands from Arizona (Mines in Arizona have closed now), Pigeon bloog red Ruby from Burma clean stones is the most expensive Colored gemstone in todays market because of the premium it comes with due to the rarity.
Short term Investment in Colored Gemstones - Key is to buy the stone that just started increasing in prices
- Such stone include Red spinels that I can think of right out of my head. The fact that they have the same properties as Rubies, hardness is the same, comes from the same location, quality is much better - it makes this stone on our top #1 gemstone to invest in as a short term invesment.
- Moonstone/Labradorite rough - the prices for 1 grams - 2 grams - 5 gram sizes have gone up 40% in 2 months. That is according to our dealer of rough who says that the Chinese have bought alot of rough so they can make caliberated sizes in these two colored gemstones that have been the favorites of many American buyers in big amounts.
In conclusion, I would say if you cannot get a a good return on your investment, then just gift it t your wife or if you are a women, then wear it yourself. Just kidding. Gemstones give a great return on investment if money is spent on the right item at the right price so to even sell it to a wholeseller or a retailer, or both. Its all about whether you are looking to invest in Gemstones for the long term or for the short term. Or just instead of having money you want a few beautiful things (Just like the chinese do it)