Gemstones are considered to be a classic currency in crisis, as they offer good protection against inflation due to their stable value.
Note to remember
Like investments in precious metals, diamonds and colored gemstones, unlike stocks, bonds or real estate, do not generate any ongoing income. In order to make a profit with them, therefore, only a sale at a higher price is possible. In addition, as a promising investment, gemstones always require a long-term commitment. They are only suitable for patient investors who have the time and can afford to wait for the value of their precious stones to increase slowly and continuously.
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Advantages of investing in gemstones
Gold performs the same function as gemstones in terms of protecting against inflation. However, gemstones have two decisive advantages over precious metals: On the one hand, their weight makes them much easier to transport. For example, a ruby or emerald of outstanding quality, weighing just a few grams, can be worth the value of a one-kilo gold bar. This extremely high mobility of gemstones justifies their reputation as the perfect escape currency. On the other hand, the price development of gemstones usually shows a much smaller fluctuation range than the prices of gold. The lower volatility makes investing in gemstones attractive even for investors with a low-risk appetite.
Note: Gemstones set as jewelry, such as rings or pendants, are not suitable as investment objects. When it comes to the price of jewelry, not only the value of the materials but also the design and the cost of manufacturing play a decisive role.
Disadvantages of investing in gemstones
There is no regulated market for gemstones. Unlike gold, for example, there are no official rates for gemstones. The income from selling the stones is ultimately dependent on how much a potential buyer is willing to pay. Here, too, there is no guarantee of an increase in value. In addition, sufficient time should be planned for the search for a buyer. In addition, without the appropriate specialist knowledge, there is a high risk of buying overpriced gemstones from dubious dealers, which later have to be sold again at a lower price. Thus, the appreciation by one or more experts is advisable.