Monday, 21 December 2015

Getting to know investment in the big 3 Colored gemstones: Ruby, Sapphire And Emerald.

This article is for the general public. We at Navneet Gems & Minerals know that everyone is aware of the big 3 Colored Gemstones: Emerald, Ruby and Sapphire. In this article we'll discuss whether you should invest in these three gemstones, all the information you may need.

We have been reading many articles about Investment in the big 3 gemstones and after reading so many promotional articles about Invest Invest Invest, in Gemstones. We created this article.

Are coloured gemstones investment for you?

If you are in the industry, then definitely yes. Not just can you sell these at retail prices in the Jewellery shows, but also display the stones in retail stores around the world.

If you are not in the industry, but have plenty of money to invest in various properties, then read on about how you can invest in these Gemstones.

If you are not in the industry, but don't have enough spare money, then this Investment option is not for you. You might be looking for save havens like Diamonds, Gold.

The Big 3 Colored Gemstones

Sapphire
Emerald
Ruby

These three are the most sold Gemstone, whether it be loose or built in Jewellery. However, the question is should you invest? First let's understand the prices of "Investment quality" in the three SER precious gemstones.

Assumption: All cut / quality (Best clarity) / color is of the best standards. Color of ruby Pigeoon Blood red. Emerald Columbian sea green. And Sapphire being Royal Blue. (These are all the best colors in their field)

1 carat:
Ruby @$4,000 per carat
Sapphire @$1,500 per carat
Emerald @$3,000 per carat

Clearly these 1 carat stones are not the best investment because of the low $ value, anyone can afford these stones, thus not an investment. Lets give it a number, maybe in a country with artificially 1,000 people with equivalent GDP per capita as USA (which is $53,000), I am assuming according to our research maybe 700 people out of the1,000 people can invest in any of these gemstones. This gives us a score of 70%. Keep this number in mind, it will be used in the upcoming conversation.

5 carat:
Ruby @$20,000 per carat
Sapphire @$8,000 per carat
Emerald @$14,000 per carat

Now these numbers might not ring a bell, but when you calculate the total investment for the above prices per carat for 5 carat, the total value will be:

Ruby @$100,000
Sapphire @$40,000
Emerald @$70,000

This is worth understanding, that Investment in Gemstones need to be understood. With the same GDP per capita of $53,000, maybe 15% of the people can invest in any one of these Gemstones which have a minimum value of $40,000. So that is the number you've got to remember. 15%.

Conclusion: The point of taking from this article is Investment in Coloured Gemstones for actual people is NOT if you buy a expensive stone of $10,000. The value of these gemstones will never increase as much in the long term as if a gemstone is a nice high end 10 carat and more. So if you are having really good money, understanding the graph below of rarity of higher carat weight pieces, then Colored gemstones are really the right investment.



If you need to understand Emerald quality, we did create a Quality chart here for Emeralds, hope it helps understand what an investment grade Emerald is.

Article brought to you by Navneet Agarwal (GG, GIA)

1 comment:

  1. I like to read your post. I enjoyed this post a lot. You can buy gemstone rings online from Incocu. Thanks for sharing this post.

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