Investing in Gemstones – What You Need to Succeed
If you can buy low and sell after appreciation or improvement, you can make a tidy profit. Gold and silver offer more liquidity than gemstones, but a savvy investor can often earn more of a profit from investing in gemstones. However, there are some qualities and skill sets that make you more likely to be successful at this venture.
The first, and most obvious, is that you must be knowledgeable about gemstones. It’s a good idea to research and become very comfortable with a niche area of investing in gemstones. You might invest in rough stones, cut stones or finished jewelry. Or, you might specialize in a particular stone or family of stones, like colored diamonds. Natural stones are more valuable than synthetic ones because the mines are being systematically depleted. You should be able to tell the difference between natural and synthetic gemstones. You should also have a good idea of the quality and market value of the stones you are considering. Buying at retail prices will almost never bring a profit, even after waiting a few years.
Salesmanship is the second skill set that you need to have. The gemstone market is not like the gold market. At any point in time, you can take your gold to a gold dealer. They weigh it, and then give you the standard market price for gold according to weight. Gemstones are sold according to what the market is willing to pay for them. This means that in the sales portion of investing in gemstones, you are responsible for finding a purchaser. You have to find someone and convince them to give you the price you are looking for.
The best appreciation comes from improving the stones. So, the third skill set is one that enables you to make those improvements. This may involve learning the cut the stones. If you buy rough stones at a wholesale price, and then cut them into finished stones to be sold to collectors or jewelry stores, you will usually reap a much greater profit. However, if you have the skills to turn the stones in finished jewelry, you will typically have a much wider audience from which to find a purchaser. With these skills, you can succeed at investing in gemstones.