Certain types of gemstones are suitable for diversifying an investment portfolio. A basic distinction is made between diamonds and colored stones.
The significantly high increases in value in recent decades, particularly in the colored stone sector, were primarily driven by two main factors: increased demand on the wholesale and retail sides and, in some cases, extreme scarcity of resources on the mining side.
The most interesting colored stones are ruby, sapphire, and emerald. These have a higher potential to increase in value than diamonds, which have generally proved to be more dependent on the general market trend in recent years.
Larger diamonds of 5 carats or more in the highest quality, and the very rare colored diamonds with special coloring, are not affected by this.
In addition to the species mentioned, there are attractive colored stones, such as spinel or Paraiba tourmaline, which have proven to be very useful alternatives in the investment spectrum.
The fungibility of gemstones is basically defined by the following points:
- Type of stone
- Quality/certification
- Demand/availability
- Marketability
As with other alternative asset classes, such as automobiles, art, or wine, quality plays a key role. The value of a stone is determined by its rarity and thus by its color intensity, purity, size, and provenance.
Valuable stones are always accompanied by at least one certificate from an independent and internationally renowned laboratory.