Like all investments, investing on gemstones is risky. While investing on high-end gems and jewelry is generally seen as a good investment, but to get the most out of your investments there are several things you should keep in mind.
As we previously stated, investing on gems is risky as the gemstone market, while stable, can have the tendency to fluctuate a lot. An example of this is when the market for emeralds were put into question because of controversies related to the gem’s treatments with artificial resin.
If you want to make the most out of the money you placed into investing in gems, you would want to follow these tips.
Tip 1. Manage your Costs
What makes gemstones a good investment is that they are a reliable thing with value in them. Compared to the stock market with its value declining and increasing, gemstones are just more compact and secured.
Experts such as Christoper Nohl would tell you to manage your costs when you are just starting on the gem investment business. Make sure that you are paying for the right price as your initial spending plays a major role in determining if you will get a good return on investment. Additionally, following this advice allows you to have a margin of safety if something goes awry.
Another tip that can come in handy when you are trying to manage your costs is to not settle for cut or finished gems. When you are looking to buy gemstones, don’t restrict yourself to just cut gems as rough gems and minerals can hold bigger investment potential. Additionally, you can find yourself earning more by buying raw material as you can add value to them through various methods.
Tip 2. Consider the Markup Before Buying
Generally, lower priced gems usually receive a higher markup than expensive gems. This is because when jewelers would order stone for a customer, they have to set a minimum price so as they don’t risk losing out on money.
To get the most out of your investment, consider the difference between wholesale and retail pricing. Having good knowledge with the general price range of gems in these two cases can better your chances of making a profit.
Tip 3. Add Value to your Deals
One of the many things you can do to add extra value to your gem deals is to recut or repair the gem. You will find that in some cases, recutting and repairing the gemstone can improve its value significantly. Furthermore, simply polishing the gemstone can increase their value as you can appeal to more buyers and collectors when the gem is in its pristine condition.
Another thing you can do to add value to your gem is to repurpose the gem into something else. A prominent example of this is repurposing it to some sort of ring or jewelry. Although the skills required to make jewelry might involve additional payments, the end result will pay as gemstone jewelry has a bigger market than the gems themselves.
This not only gives you a bigger advantage when selling your investments but will also allow you to refurbish and add value to cheaper gemstones if they were used to compliment the main centerpiece gem.