Are Precious Gemstones a Good Investment?

09
April

A good investment is profitable because the investor is knowledgeable about it. He invests in something aware of the risks the investment poses yet he has a way to minimize the risks and benefit. There are many markets to invest in. Precious gemstones, is not one of the popular markets. However, a lot of people are now looking into this market, even though there is no clear-cut understanding of how it works. So, the question is, are precious gemstones a good investment?

Gemstones do not trade as stocks do. They are not the kind of investment to get into just in order to make money. If you are looking for an investment that will bring you money quick, this is definitely not it. However, if you enjoy collecting precious stones and are particular about their appearance, color and cut, then yes, they are a good investment. There are things you should know, to make this is a worthwhile investment.

• Beware of what you are buying – There are so many “precious stones” in the market. Some are chemically engineered while others are genuine precious stones. It is impossible to tell the difference unless you are a gemologist. If you are to invest in gemstones, you need a reliable expert who can help you out. Otherwise you will be investing in fake stones and have no idea until it’s too late.

• Research and learn as much as you can about gemstones – This requires a lot of time, patience and desire to learn. Investing in precious stones is tricky because those already in the market keep it interdependent. Gemstone retailers, wholesalers and investors keep to those they know. This is because trading precious stones is not an easy process, especially when it comes to finding a buyer. Prices shift sporadically, which is why it’s important to learn as much as you can before investing.

• Find a market that you can work with – If you are set on investing in gemstones, find a market. This means, find someone from whom you can directly buy the gemstones. Make sure they are genuine sellers and be aware of the selling prices. Then find a market you can sell the gemstones. The point of any trade is to make reasonable returns so be sure your market can guarantee you this. Know your market and your precious stones exhaustively. This is the only way to ascertain that your investment will be worth it.

If you can meet the above demands, then yes, precious gemstones can be a good investment. To realize good returns however, ensure;

• You deal in quality and quantity.

• You get a good and trustworthy gemologist.

• You attentively inspect the stone. The weight, clarity, and color of a stone can tell a lot about it.

• You have unique stones. This you can do by getting rough stones and cutting them exclusively.

• You keep on learning about gemstones and the market.

• You hold on to the gemstones when you have to. There is no hurry to sell the stones, especially if they are rare. Find a good market then sell.

• You keep the gemstones in optimum condition.

Do not be afraid to ask questions about your investment. That is the only way you can be sure you are covering all aspects. Learn from those in the market, as much as you possibly can. This is a young but steadily growing market. You may be the student now but, in a few years, you will be the teacher. Gemstones are a good investment if you are knowledgeable, patient and interested in precious stones.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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