Sunday, 14 September 2014

Will the value of my gemstones increase? If not, should I sell them?

Readers, you got it right. This is the most frequently asked question we have been asked over again and again by our prospective buyers and friends. “Will the value of my gemstones increase in future? If not, should I sell them at current market prices”. Today, I will like to share my thoughts on the topic.
The upward and downward trends in gemstone prices depend on supply and demand. Generally, the prices of gemstones have increased over a period of time, sometimes dramatically.
For Example: - Before 1870, Diamonds were scare. The total World productions of Diamonds were just few kilograms. But, when African deposits were found in 1870, the supply of Diamonds greatly increases which was much higher than its demand. British financiers then came up with the cartel “De Beers”- which controls the demand and supply of Diamonds world-wide till today. To ensure that only control supply of Diamonds comes to the market so that prices remain high.
Fortunately, there is no such cartel formed for Colored Gemstones. International Colored Gemstone association breaks the price ranges of different gem varieties down into five basic categories. They are:-
  1. Traditional Gemstones: These are Ruby, Blue Sapphire and Emerald. Generally, Ruby and Emerald commands high prices because of their lasting appeal and glorifying history. While Blue Sapphires because of their rarity. An average to good quality of these varieties would be in a price range of $250/carat to $ 1o,ooo/carat. The more you spend more you will get!
  2. New Classics: Gemstones like Tanzanite, Tourmaline, Aquamarine, Imperial Topaz and Tsavorite comes under “New Classics”. The prices of these Classics increase with their increased popularity. The average to good quality of these varieties would cost you $50/carat to $1,000/ carat.
    Tourmaline cabochons
  3. Connoisseur Gemstones: Gemstones like Black Opal, Jadelite, Pink Topaz, Chrysoberyl, Fancy-colored Sapphires, Alexandrite falls under this category. They all command high prices because of their rarity. Average to good quality of these varieties would cost you around $250/carat to $5,000/carat.
  4. Collector’s Gemstones: They are less-known, low-priced and not heavily marketed gemstones. It includes Zircon, Spinel, Moonstone, Morganite and some other Beryls.
  5. Affordable Gemstones: Affordable Gemstones is a combination of =Great Color + Surprisingly Reasonable Price+ Good Availability.
Navneet Gems and Minerals specialize in offering various precious and semi-precious gemstones through our Online Gem Store. Our huge inventory consists of wide variety of colors which includes gemstones like Blue Topaz, Citrine, Amethyst, Aquamarine, Garnet, All Quartz, Pink Sapphires, Blue Sapphires, Tourmalines, Zambian Emeralds and many more at wholesale prices. So, to get best value of your money on online purchase just click on navneetgems.com.
Investment in natural gemstones is a smart move. As the supply of natural stones is always restricted even, several mines have already been worked out. One more thing, it always better to invest in lower priced gems because they receive a higher mark-up than expensive ones. Lower priced gems can easily be marked-up three to four times. Moreover, lower priced gems are like liquid assets as they can be encashed anytime. Here, a question arises what are the factors which determines the prices of gemstones? They are:
  1. Market Factors: Market factors can dramatically affects the price. Gemstones which are plentiful or low in demand will be low in price. Gemstones which are rare or high in demand will be high in prices.
    Market price graph
    Market price graph
  2. The four C’s: Four C’s- Color, Clarity, Cut and Carat Weight majorly affects the price of Gemstone. The deeper the color is the better the clarity will be of the gemstone and would be more expensive.  The more bigger the stone better the price. Cut of the gemstone plays less significant role than Color, Clarity and Carat Weight.
    Hue wheel
    Gemstones shapes
  3. Geographical Conditions:  The value of the gemstone also depends on where the stone is being sold and buyed. For Example: The price of unset cut and polished stones in Bangkok tends to be comparatively lower than same gemstone sold in New York. Because Bangkok is a place where many colored Gemstones are cut.
I advised my readers to hold them precious Blue Sapphires from Madagascar, Africa and Sri-Lanka for a while. The prices of Blue Sapphire has shown upward trend over the period of time and will reach its all time high in coming future.  Tourmaline- may be a “New Classic” and can be added to our inventories. These multi-colored stones have very good future prospects. Holding of Spinel is a wise-decision at this point of time because Spinel will be used widely as a substitute of high-priced Ruby. Affordable Stones like Garnet, Amethyst, Citrine, Topaz and Fire Opal are good for trading purposes.

Gemstones are like Real Estate, prices increases over a period of time, but you might not get the price you want when you want to sell them. If you have purchased a stone and wants profit on it you should be clear in our mind about what are you looking for. One should select right time and market conditions, should check and compare the prices with other gems available on online gem stores.

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