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Jewelery as an Investment

It’s intriguing that a gem worth thousands of dollars can be just as small as an olive. During older times, jewels were symbols of power, wealth and high social status. They were an asset, to those lucky enough to have them, a form of concentrated wealth that could be used or in difficult days. These jewels are tangible, portable and have an undeniable monetary value. Because of their convenient size, precious stones are easily transported and their value is quickly liquidated.

In modern times, you don’t need to be among the powerful in order to invest in jewels. Any person who is looking to make a sensible and distinguishable investment has the ability to acquire jewelry. A smart investment is one that gains value over time – after a certain period it becomes worth more than its original value. It is also recognized that Jewelry appreciates over time and is left as inheritance from generation to generation.

In addition to Gold and Diamond, there are three main precious stones: Ruby, Sapphire, and Emerald. All the mentioned stones values behave similarly in the sense that historically their price is always increasing and can be melted and reused when needed.

Before investing in precious stones it is very important to know how to evaluate them and how to tell if their value is justified. Some of the essential things to know about are the quality factors, also known as the 4C’s, which can be defined as follows:

  • Color: refers to the beauty of color of the gem.
  • Cut: refers to the cutting quality and shape of the gem.
  • Carat: refers to the total weight, thus the size of the gem.
  • Clarity: refers to the imperfections or foreign particles from natural formation in the gem (might be microscopic).

For evaluating the price of diamonds the 4Cs are equally important but for Rubies, Emeralds and Sapphires, Color is the most important factor. In addition to the four C’s, it is also important to know about the different kinds of treatment. Stones which have some imperfections such as extreme cracks are treated in order to deliver a stone which looks brand new. Below are some treatment methods:

  • Diamonds can be HPHT treated: Exposed to high pressure and high temperature conditions.
  • Rubies and Sapphires can be treated using three methods: heating, diffusion, and fracture filling.
  • Emerald treatment has two common practices: Oil treatment or fracture filled with resin.

Untreated gems are the most valuable. Although some treatments such as heating and oiling are acceptable and preserve the stone’s natural value, other treatments such as diffusion and fracture filling render stones less valuable since they fade away with time.

All the previously mentioned stones are found naturally in the Earth. However, you can find on the market lab-grown synthetic stones. These man-made stones do not have the similar chemical structure of natural ones. Synthetic stones are easily available but are not valuable. In order to guarantee a piece’s integrity and authenticity, it is vital to ask for the stone’s certificate when completing the purchase. A stone’s certificate is issued by an independent gemological laboratory.

When investing in a piece it is also important to look at the history and rarity of the piece. Pieces that have a documented history gain additional value and some pieces might also belong to a limited collection from a famous designer.

 

To know it all when it comes to buying for investment, request our free jewelry investment guide by filling the form below.

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