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Gemstones as an investment have become ever more attractive of late. Why is that? And when is a gemstone really valuable?

In order to recognize that gemstones have in fact become "more valuable" and have a more pronounced monetary value, we have to focus primarily on the factors of rarity and global relevance. Regardless of the country, the currency, and the comparison with other assets, gemstones continually gain in value because the supply of raw goods is declining worldwide.

Example: Spinel, very good quality, approx. 10 ct (2 grams) –
retail price approx. € 45,000

Thanks to the processing of raw materials to faceted stones, integration into jewelry ,and the sale of jewelry, there exists a continuous shortage of fine gemstones in the market. These available gemstones cannot be replaced by active mines in quantity and quality. Deposits are continuously being mined, therefore the commodity cannot come onto the market in one fell swoop and unleash a negative price trend through oversaturation.

The one thing the market can do to meet the demand for gemstones is to treat lesser raw materials in order to create higher quality. This happens, for example, when gemstones are subjected to heating processes that reduce their value. It is relatively simple, however, for experts to recognize it.

Investment gemstones are, therefore, untreated, natural gemstones, whose quality and condition are becoming ever rarer. Fewer raw materials, fewer (polished) faceted stones, and quality that cannot be compensated for with treatments are the three most important points that secure the value of investment gemstones in a natural, geological way.

The only point that would level out an increase in value is a declining attractiveness of colored gemstones on the whole. However, the history, rarity, sparkle, and intensive color of investment gemstones come to bear here–they have never lost their appeal in their entire history. On the contrary – who doesn't know the words ruby, emerald, and sapphire? Who hasn't heard of the pirate's treasure that people sailed the oceans for? Who doesn't know famous books and films in which gemstones feature?

That is known as passive marketing, which will certainly echo for the next hundred years, as it has the last thousand. Welcome to the timeless value of investment gemstones.

Deutsches Edelsteinhaus DEH GmbH
Chief Executive Officers: Alexander Streeb, Oliver Kleimaier

Commercial Register Number: HRB 737047