Gemstones – Five Good Reasons to Include Them in Your Portfolio

Traditional Investing

There are many different ways to invest. Stocks, bonds, commodities, and gold are some of the common methods most people think of when they consider investing.

These are all good – and every investor should consider diversifying their portfolio. One often over-looked investment is loose gemstones.

Investing in Gem Stones

There are five good reasons to consider including these in your portfolio.

1. Gemstones do not typically fluctuate greatly in value. Over time their value typically increases, sometimes greatly. Tanzanite increased in value 20% in May of 2007 alone and many experts predict it will 200% in the next five years.

2. Gemstones can be kept in hand. Unlike most investments you can choose to keep Aquamarin gemstones at your home or (more likely) in a safe deposit box. This gives you a physical closeness to the asset unlike most investments. If the market skyrockets you can quickly unload the piece.

3. Gemstones have multiple uses. If you buy one as an investment you can just keep it. Or you can have it mounted in a setting to increase it’s price. If it is facet rough you can have it cut to your specification and used how you see fit – and it still holds value over time.

4. Gemstones are always unique. An investor will want to buy the highest quality facet rough or finished gemstones. The best unique pieces will always increase in value.

5. Gemstones are in a rare market. The gem market is an artificially controlled monopoly that is tightly controlled. It is very unlikely this monopoly will be broken which means prices will continue to increase or stay stable for the near future. There are many things that can restrict the supply and increase price but very few that can increase supply and decrease the price.