How To Invest In Gemstones

In comparison to stocks and other financial instruments, gemstones are not as easy to profit from. Traditional investments have a value that is more easily discerned, and an more accessible market for selling.

Gems are categorized as imperfect markets, due to their negotiable prices and the need to find qualified buyers. These stones are a risky investment, as there is no way to predict their value in the future.

Your main goal when investing in gems is to purchase your stones at as low a price as possible and either wait for their value to increase, or utilize other means of increasing their value.

Educate Yourself On The Gemstone Market

As with other investments, education is critical to your success as an investor. By learning everything you possibly can about the market, or by locating an expert to assist you, you will be better positioned to profit from the gemstone market.

There are many courses offered to help you learn more about gems, including the ability to analyze a gem to spot a potentially good investment, or a gemstone that should be rejected.

Get The Lowest Price And Buy In Lots

The lowest price for gemstones can be found with the primary dealers. The areas where mining the stones occurs are where the primary dealers can be found. These companies are the ones that are mining and cutting the gemstones.

Primary dealers sell to wholesalers, and wholesalers sell to secondary dealers. Retail prices are far costlier that wholesale prices, so check your local business directory for a reputable wholesaler to do business with.

You can also receive better pricing by purchasing gemstones in lots. Buying in lots gets you more attractive pricing, as purchasing a single stone will always be costlier. The seller sets the lot size, and gemstones are often sold according to weight, and can incorporate a variety of grades.

For the best investment, buy lots with a bigger number of quality stones.

Increase Your Gemstone’s Value

By cutting rough stone into loose gemstone you will increase the worth of the primary purchase. You can increase their value yet again by turning loose stones and fashioning them into jewelry.

It is important to consider your original purchase price, and to assess if it is low enough to profit after paying for the materials and labor that is needed to raise the gemstone’s value.

Utilize online auctions and auction houses to sell your gemstones to gem shows, private buyers, and jewelry stores. In order to command a better price, operate as a business to gain an advantage over an individual seller.

Always substantiate a sellers claims with a third party appraisal. These reports are available for a small fee, calculated based on the weight of the stone. Do not be afraid to walk away from a seller who will not allow you to corroborate a claim.

Investing in gems includes finished jewels, rough stones, and mineral specimens. In order to make the best investment for you and your circumstance, you nees specialized gemstone knowledge. Choose the type of investment that you find the most fascinating and concentrate your efforts and education there.

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