Gems can be a good investment opportunity if you follow some rules. You cannot pay retail price for a gemstone or jewelry and expect to sell it for a profit very shortly. You need to buy from primary dealers; those who mine and cut the stones themselves. There are two areas where gems take a substantial increase in price. One is between rough and cut. The other is between loose gems and finished jewelry. Therefore, loose gems and ready jewelry might be good investment. When it comes time to turn your gems back into money it’s easier to sell ready jewelry. The market is bigger. You can consider direct sale to retail, individual person or wholesale. Any jewelry shop might be interested. Loose gemstones may require buyer from industry.
Gems have intrinsic value that withstands the test of time. Even with the global downturn, financial crises, wars, the value of precious gemstones climbs. As a rule, gems increase in value at the rate of inflation. You won’t get double digit gains, you do get a security and steady growth. You can carry large amounts of value in your pocket and go anywhere in the world. And an advantage to gemstone is the global appeal. They have value everywhere.
Sapphires of fine quality are in fact very rare. Diamonds, are in almost every type of jewelry, in every jewelry store. The world production and use of diamonds proves that diamonds are not at all rare. Prices are held up by a combination of highly inflated profit margins as well as controlled release of supply by the diamond cartels.
Only natural, treatment free gemstones qualify for being investment grade gemstone. Treated, heated, colored gemstones, are investment myth. I can guarantee origin of stones with certificates. The market for untreated sapphires has continued to rise as more and more consumers become aware of the possible thermal and chemical treatments.