Gems for investment
Why invest in gems?
The tradition investments with bank deposits or life insurance give only very low interest after taxes.
In case of crisis all your deposits could disappear. As you know, a large part of the money in the bank is virtual.They do not have the cash.
So with these low interests, if you keep your cash yourself you will lose perhaps 1 or 2% per year but you will hav ethe guaranty to not lose all.
In Europe and France there is a regulation about the guranties given by the bank. You can read it here (in French)
The increasing of the price of the gemstones is very high since several years
Overall, there are some common factors as the increasing cost of the production,the cost of the enegy and the reduction of the gem ressources.
The poulation incresases ans the gemstone resources decrease.
The increasing cost of the prodution is also the fact of a better especting of the environment (as in Brazil or Sri Lanka)
Some prices increase less for some gems as tanzanites, diamonds. They are planty of diamonds and tanzanites. These gems are not rare. So for the usual quality there is enough production to supply the asking. But for the top quaity diamonds it is not the asme situation. These past years we have seen some huge records for large and top quality diamonds.
You can also have some fashion phenomena that could appears in countries, like China. In that case the production will not be enough. But this is speculation.
Many gems have increased since 5 - 6 years with an average of 10% per month. Realy by month, not by year ... This is the case of stones of certain sizes in rubies, sapphires and spinels. These very lhigh rate of increasing prices also affects the white diamonds in the best qualities and large sizes, as well as color diamonds.
At auctions as at Sotheby's or Christie's, new carat price records for diamonds, colored diamonds, rubies, sapphirs (and more.. )are achieved every time. And these records are pushing up all the gem market. Compared with other precious stones, white diamonds (apart from exceptional sizes) have a smaller and
steady increase. There are two main causes. On the one hand the white diamond is not a rare stone in comparison to other precious stones and especially the ruby. On the other hand there is still a very dominant position of the DE BEERS company on the market of the rough diamond.
But more surprising, some "basic" gemstones have seen their prices increasing to summits. An example: the blue topaz. It is a common cheap (and treated) gem. I had to order more calibrated stones for my inventory for the website. And I had to pay 3 time the price paid only three years ago.Our replenishments
are made at a threefold price from two years ago. So, I must be very vigilant about these phenomena of increasing prices. I must regularly update the selling prices of the my gemstone and apply these increases on the gemstones in stock. Indeed, long-term profit is not, contrary to popular belief, the difference
between the purchase price and the selling price, but between the selling price and the purchase price of a new product. If I did not had this vigilance, I will not be available now to serve you with passion as I have been doing for a quarter of a century. We must also take into account the fluctuation of exchange
rates between the dollar and for us the Euro. Indeed, the purchases of fine stones and precious stones are made in dollars. Therefore, a rise or fall in the price of the dollar relative to the Euro will affect the price of gemstones sold in Europe.
The taxation of gems is avantageous in many countries
In many countries you have not to pay high taxes when you sale a gemstone for investment. I can only talk about France and you have to check in your own country...
The approach
If you want to buy a gem for investment I will be with you step by step.
First you have to know how much you want to invest. I will give to you some recommandations.
You have also to choice the variety of gesmtone that you like. It must be a good investment but also your pleasure to be the owner of a gesmstone that you love!
Theer is a large choice in good quality gemstones as rubies, sapphires, colored sapphires spinels
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