As investors search through piles of investment information about elegant gems, many are realizing that the key to investing in gemstones, is to start slow and build a valuable collection. Commonly, gemstones are investments with an intrinsic value (value in use) such as real estate investing, precious metals like gold, copper and other forms of physical assets. Remarkably, in most instances, thanks to their relatively low relationship to other financial assets (equities and bonds), gemstones have demonstrated they can provide investors with a valuable option to diversify their investment portfolios.
It is also known that gemstones will increase in value over the next decade, as they are slowly getting harder to find and the demand is rising. Moreover, they offer a degree of protection against inflation, unlike money or stock market investments.
What is the bottom line? Precious gems are secure investments, IF you know how to choose them.
In these challenging economic times, when the appetite for risk among investors for equities and bonds is declining, most fund managers now advocate that portfolios that include hard assets – such as gemstones, will generally provide a better risk/return profile; than investment portfolios without them. Therefore, contemporary investors see gemstone investing as an alternative investment, that offers protection against inflation and preserves their investment principle.
Portfolios that include hard assets, such as gemstones, will generally provide a better risk/return profile than investment portfolios without them.
Although there will be a constant evolution of different types of gemstones, ranging from energy applications to a tangible possession, the one most crucial point to note is that gemstones are able to maximize the asset holder’s wealth.
As we are aware in today’s contemporary investment climate, gemstones are able to preserve capital from eroding and a natural hedge against inflation, and (for me) both of these are signs that this asset has created its own pull factor. It makes absolute sense to me!
The current unprecedented global monetary and fiscal stimulus undertaken taken by Western Governments, coupled with the high inflation in the East, has somewhat rocked the traditional stock and bond markets; resulting in gemstones becoming a preferred mode of investment. According to analysts, there is no mistake about where gemstones values are headed next. All signs point to even higher values.
I love the diamond business. It’s a Cinderella world. It has everything. People; drama; romance; precious stones; speculation; excitement. What more could you want? – Harry Winston
Nowadays many portfolio investors – after years of trial and error, have finally discovered that the benefits of introducing alternative investment to an investment portfolio, is the secret to improving investment returns; while mitigating risk at the same time. All things considered, gemstones are very appealing to savvy, confident investors and have emerged as a nice fit for investors and institutions.