In order to recognize that gemstones are actually becoming “more valuable” and more valuable in monetary terms, one must clearly put the factors of rarity and global relevance in the foreground. Regardless of country, currency, and how it compares to other real assets, colored stones continue to rise in value as the raw commodity dwindles around the world.
Due to the processing of the raw material into faceted stones, incorporation and sale in jewellery, there is a continuous shortage of fine gemstones in the market. These existing gems cannot be replaced in quantity and quality by active mines. A deposit is mined continuously, so the commodity cannot hit the market all at once and trigger a negative price trend due to oversaturation.
The only thing the market can do to meet the demand for gemstones is treat inferior raw material to produce better quality. This happens, for example, by heating the gemstones, which reduces their value. However, it is relatively easy to spot for experts.
Investment colored gemstones are therefore untreated, natural gemstones whose quality and condition are becoming increasingly rare. Less raw material, less faceted (cut) goods and quality that cannot be compensated by treatments are the three most important points that ensure the value of investment colored gemstones in a natural, geological way.
The only point that would level out an increase in value is a declining attractiveness of the colored gemstone as a whole. Here, however, comes the history, rarity, glitter and intense color of investment colored gemstones, which have never lost their appeal in history. On the contrary – who does not know the words ruby, emerald and sapphire? Who doesn’t know the pirate treasure for which one sailed across the seven seas? Who doesn’t know famous books and films that feature precious stones?
This is called passive marketing, which should last for the next hundred years, as it has for the last thousand years. Welcome to the timeless property investment colored gemstones.