Is it a good idea to buy a gemstone as an investment? If you ask the opinion of three different people, you’ll probably get three different answers.
There is no simple answer to this question and you should bear in mind that all investments involve some degree of risk. That said, a diversified portfolio carries less risk than putting all of your eggs in one basket, so why not include a precious stone or two alongside your other assets?
Gemstones are hard assets, like property or cash. Historically, they have acted as a hedge against inflation and as a safe haven during financial crises (when stocks and bonds fall).
Gemstones do increase in value, but it’s a long-term game. Gemstone prices fluctuate, like any investment. Over the long term, however, gemstones have risen in value significantly. Nevertheless, be aware that they will not be as easy to liquidate as other assets, should you need cash in a hurry!
With all this in mind, if you wish to buy a gemstone as an investment, buy only the best quality (colour, clarity, cut, carat weight).
Are gemstones a good investment? If you ask me, buy a gemstone that you like and will wear, rather than purely as an investment (to get locked away in a safe and hardly ever seen). Buy a gemstone that “speaks to you”.
If you are serious about investing, I strongly recommend that you seek the advice of a financial advisor before you part with large amounts of money. There are too many people only happy to help you part with your hard-earned cash, as reported by the GIA in this article about Get Rich Quick Gem Scams.
Gain a better understanding of gemstone buying with my book, Buying Gemstones & Jewellery Worldwide, and make an informed decision.
Kim Rix, GG GIA
Be sure. Be smart. Buy with confidence