Read here about the advantages and disadvantages of investing in diamonds and the like and what you should bear in mind.
Gemstones are considered to be a classic crisis currency, as they offer good protection against inflation due to their stable value. What you need to consider when investing in diamonds and colored gemstones, read here.
Note: Like investments in precious metals, diamonds and colored gemstones, unlike stocks, bonds or real estate, do not yield any current income. To make a profit with them, therefore, only a sale at a higher price comes into question. Furthermore, gemstones as a promising investment always require a long-term commitment. They are only suitable for patient investors who have time and can afford to wait for the slow and continuous increase in value of their precious stones.
Gold performs the same function as gemstones in terms of inflation protection. However, gemstones have two distinct advantages over the precious metal: first, their weight makes them much easier to transport. A ruby or emerald of superior quality, for example, weighing only a few grams, can reach the value of a one-kilo gold ingot. This extremely high mobility of gemstones is the reason for their reputation as perfect currencies of escape. On the other hand, the performance of gemstones usually shows a much lower fluctuation range than the quotations of gold. The lower volatility makes the investment in gemstones attractive even for investors with a less pronounced risk appetite.
Note: Gemstones set as jewelry, such as rings or chain pendants, are not suitable as investment objects in forex-exness.net/downloadexness/. When it comes to the price of jewelry, design and the cost of production play a decisive role, in addition to the value of the materials.
There is no regulated market for gemstones. Thus, unlike gold, for example, no official rates are determined for gemstones. The return on the sale of the stones is therefore ultimately dependent on how much a potential buyer is willing to pay. So here, too, there is no guarantee of an increase in value. In addition, sufficient time should be planned for the search for a buyer. Furthermore, without the appropriate expertise, there is a great risk of buying overpriced gemstones from dubious dealers, which later have to be resold at a lower price. Thus, the valuation by one or more experts is advisable.
