2 to 3 yr investment options?

[alloway65 10]

Good day,

 

I would like to ask the experts on the Gemstone Forum for some advice!

 

Say I want to add gemstones to my investment portfollio, to hold for two to three years, and initially have R20 000.00 to invest, what gemstones would be recommended. Please indicate the stone type, size, clarity and colour etc.

 

Thanks in advance.

[Gem Shop 10]

I would definately recommend that you buy a couple of tanzanites 1 ct and over...Those tanzanite mines cannot last forever.

Also I do not think you will go wrong if you buy some Rubies...but make sure they are VVs or better...A Good quality ruby is just as valuable as a diamond.

And if I had the money I would also put some into rarer gems like RED BIXITE (The worlds rarest gem)

[gemzone 10]

Good day to you,

 

Looking at the past 24 months, appreciation from month 1 to month 24 was as follows on certain gem types:

 

Alexandrite - 11.64% up

Amethyst - 13.47% up

Aquamarine - flat

Beryl - 19.84% up

Demantoid Garnet - 24.12% up

Emerald - 24.63% up

Sapphire - 16.8% up

Tanzanite - 26.18% up

Topaz - 7.3% up

Tourmaline - 13.61% up

Tsavorite - 12.75% up

Zircon - 16.75% up

 

Soooo - good call Gem Shop.

 

Regards

[gemzone 10]

Forgot to add Ruby - 24.90% up (remember this is a bi-annual figure and not an annual appreciation.)

 

These figures will obviously be for good quality stones of 1ct +

 

Cheers

[Lukeness 10]

Gemstone investment is particularly difficult as a single new discovery can change international prices dramatically. Both positively or negatively.

Sometimes their prices go up when there is enough available for it to become familiar to the market. The reverse is also true. If you have a reasonably rare gem and there are major discoveries values can plumment as was the case with amethyst which was once exstremely sought after.

 

The rarest gems are often not the best investment as they are not well known and therefore are more collectors stones. More often as specimens than as cut gems.

Although I wouldn't say no to bixbite! lol

 

Ruby, Sapphire and Emerald are the most consistant and have always held pride of place and maintained good values. Diamond values can fluctuate dramtically and with new synthetics available and DeBeers slowly losing it's monopoly prices could drop severely.

 

The prices of Paraiba Tourmaline (from Brazil) are slowly dropping while prices of Paraibe-type tourmaline (from any other locations) are rising.

Tourmaline in general is rising in popularity. Look for rubellite (red) and indicolite (blue) and paraiba. These are the top winners.

 

Red spinel (and strong pinks and sapphire blues) its also making dramatic gains in prices and can in some cases almost rival ruby. It is rarer and the quality is usually very high. This is one of the most underrated stones as in the past it was often confused with the best quality rubies (in fact it used to be known as Balas ruby) and its own identify was overshowed by this. As more people become familiar with it (WHICH IS HAPPENING FAST) its popularity is rising. I consider red spinel a good investment and one that is currently still refreshingly affordable.

 

Consider also which gems have synthetics that are difficult to identify as they can flood the market and once cut are almost impossible to tell apart.

This is the case with amethyst/citrine/ametrine with an estimated 80% of cut material being sold today actually sysnthetic but virtually impossible to detect. Obviously this affects both the volume available on the market as well as consumer confidence and prices drop to reflect this.

 

More sought after gems (once again Ruby, Sapphire and Emerald) are more closely watched and new treaments and synthetics are detected sooner along with ways of identifying them and protecting the consumer.

 

Tanzanite prices are likely to go up as there are attempt underway in Tanzania to establish similar controls over the industry as what DeBeers once had oiver diamonds. However top colour tanzanite is becoming less common and diluted colours are reducing its popularity. DO not be sucked in by "pink tanzanite" and other "new colours". These are neither new nor rare. Zoicite (tanzanite's REAL name) has always been available in those colours and it is only the rare variety which turns blue after heating that commands good value and high prices. Look for strong blue stones with a touch of purple and nothing else. Do not buy bi-colour tanzanite stones as these are not prized in the market.

[GemDeals 10]

Hi, what is the best color for tanzanite and size. Any pictures will be appreciated for us lacking in knowledge :oops:

[Gem Shop 10]

The darker blue the better and I would say at least 1 carat size

[Lukeness 10]

Generally the bluer the better. Your top tanzanties look very close to good sapphires in colour but with a slight purplish undertone.

 

It really isn't a stone I favour though because of it's relatively low hardness but that is as a jewellery piece.

[GemDeals 10]

Thans lukeness and gemshop. I am also thinking of investing in a few larger tanzanites....

 

@Gemshop- any news on those scales?

[Lukeness 10]

Remember that with tanzanite, the opposite of the norm is true. Because of the crystal formation, bigger sizes are more common than smaller ones. That is why most top colour stones are large while the poor coloured ones are small.

This is an added bonus to potential investors as it means that once you move into the bigger sizes, the is a lot more potential for high end suff.

[alloway65 10]

Thanks Gem Shop, for the valuable information, much appreciated. Have a good day

[alloway65 10]

Thanks GemZone,

 

I got the impression from Gamval that the appreciation was much higher over 2 years.......from memory that is, have not looked in a while. So in essessence from an investment point of view over 24 months I can leave my surplus funds in the bank and get over 18%, with no risk! But buying Gemstones is fun and spare money in the bank is boring.

 

Also it depends, especially looking at the Gemstone Forum in recent times, to a very very very large extent at what level one buys at and what level one sells at. When one looks at the massive differentials between the "market" prices and prices realized, 15/1 to 25/1, I will buy for fun and not as a long term investment.....at least for the time being!!!!

[alloway65 10]

Hi Lukeness,

I very much appreciate your in depth explanation, very educational and enlightening. I will have to read it many times over for the full meaning to sink into my mature brain.

Very helpfull I am sure to all would be gemacholics who read it.

Thanks again. :?

[alloway65 10]

Quote

Consider also which gems have synthetics that are difficult to identify as they can flood the market and once cut are almost impossible to tell apart.

This is the case with amethyst/citrine/ametrine with an estimated 80% of cut material being sold today actually sysnthetic but virtually impossible to detect. Obviously this affects both the volume available on the market as well as consumer confidence and prices drop to reflect this.

Unquote

 

Hi Lukeness,

The above is worrying as two of my favourite stones next to Sapphires are Citrines and Amethysts, so if the sellers can not always differentiate between real and synthetic stones, how can the poor novice buyer

 

I will now possibly refocus on Tourmalines (colours mentioned) and Red Spinels etc as well as Sapphires.

 

Re good quality Tanzanites, you mention bigger sizes of stones, do you mean stones over one carat...over 3 carats?????

Great (free) information for the novice and not so novice.

Thanks again.

[Lukeness 10]

5 carats +.

[flammaefata 10]

To alloway65

 

How did that investment pay off then? Just curious.

[alloway65 10]

Hi,

Dont really know up to now, as I am still a buyer and not a seller.

Just be careful as their is a lot of rubbish and hydrothermals on sale.

David.