Colorful World of Gemstone Investments

Investment portfolio of people who have exhausted all the usual options like stocks and real estate is now shifting towards Gemstones. While the financial instruments in diamonds market is still in its infancy with not much avenues like the Diamond fund floated by Novel Asset Management, people are looking towards diamonds, gemstones and jewelry as investment options. In an interview with CNBC, Steve Bennett – CEO of UK-based Genuine Gemstone Company, emphasized that diamonds and gemstones are “wearable investments

However, unlike the traditional colorless diamonds, colored stones are making all the noise in the investment world. When an 8.41-carat internally flawless pink diamond sold for nearly USD 17.8 million, it created a world auction record for a fancy vivid pink diamond.

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[Image Courtesy: ForbesLife, Sotheby’s]

Moreover, people are not limiting their investments to colored diamonds only but are moving to other colored gemstones. Big 3 of these being rubies, emeralds and sapphires. The GemVal Aggregate Index has appreciated around 47% in past 5 years. This index represents prices for 26 gemstones. Despite issues of transparency and subjectiveness in colored gemstones’ pricing also, people are still demanding fine and high-end colored gemstones. Swiss-based luxury jeweler Mouawad is showcasing a 30 carat emerald jewelry priced at USD 14.5 million. In some recent auctions, several colored gemstones and diamonds have fetched record prices and huge returns.

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[Image Courtesy: Mouawad, CNBC]

Among other things, the appeal of color and sense of individuality are driving the investments in colored gemstones. Some are also looking for a tad of fun along with returns, and invest in racehorses, vintage wines and Bitcoins.

The mindset of people worldwide is transforming and this presents a huge opportunity where diamonds can be considered as mainstream investments instead of just alternative investment avenue.

 

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