How to invest in rare gemstones? 

Gemstones have outperformed many other Luxury investment options, and the demand for coloured stones like rubies and sapphires continues to grow in the markets. At the end of April 2019, the Bonham sales in London got bids beyond estimation.

 A 17.43-carat Kashmir sapphire owned by a European noble fetched £723,063, while the previous estimates for the stone ranged from £300,000 to £400,000. Jewellery sold for an astonishing price was a Sri Lankan sapphire necklace, estimated at £120,000 to £180,000 but sold for £287,562. 

It was a 34.59-carat stone dated around 1935. In 2015, a rare 25.59-carat ruby was auctioned for $30m. It was called the Sunrise Ruby.

The popularity of such investments can be attributed to their affiliation and endorsements by celebrities and royals. 

British Royals have always showcased their desirability for rare gemstones like the deep blue sapphires that belonged to the Duchess of Cambridge. Many collectors hoard such items as a symbol of luxury for financial hedging. 

It can be a part of a lifestyle that creates aesthetically true looks. It is associated with happiness, but it is necessary to get genuine antique stones or vintage jewellery to get the true value of your investment. 

Investors should be careful while buying diamonds of millions of dollars as they cannot estimate the real value of these stones by looking at them. 

Some specific types of stones are highly desirable but are available only in the secondary markets, like the Kashmir blue sapphires, emeralds, and rubies,  as the mines of some of these rare stones have depleted and buyers seeking ethical ways to get the rare varieties may find it difficult to get the right seller.  

Awareness related to the rarity and newer marketing strategies have boosted consumer confidence, where the new systems of verifications and certifications enhance steadfastness and promote transparency in the sector. The laboratory-based tests and gemological analysis provide consistent ways to identify the true value of the stones. 

Why invest in diamonds and coloured stones?

Diamonds hold a small space for storage but can be used to get greater value in exchange. It is easy to transfer the asset from one place to another, and it can be stored for many years without worrying about damage or loss of value. 

Most diamond investments are locked for years in a safe as a hedge against market volatility and inflation. It is like a physical commodity that can get a hike in price due to inflation, and it is a highly durable investment. Hence, several high-net-worth investors hold diamonds or jewellery made from precious stones.  

Some investors may hold a single stone for years to gain in the future, or they may get a jewellery set of low-cost gemstones, which can be worn on certain occasions or auctioned when the price grows. Many young buyers seek a combination of retro looks and modern styles that promote versatility.