Truth be told, you can make money when investing in gemstones. However, like any investment, you need to be knowledgeable of natural gemstones and act with a good deal of caution and common sense. Here are some tips for investing in gemstones:
If you are interested in buying gemstones as an investor, don’t go to high-end jewelry stores. You are better off buying loose gemstones from a wholesaler of gemstones and jewels. In addition, you can get a better deal by purchasing lots rather than single stones. For instance, we sell up to 10,000 carats at a time. If you are just getting started collecting loose gemstones, my recommendation is to start with 50 carats.
Purchase rough gemstones
Don’t worry too much about the cut of the stone. Rough gems also hold potential for investment. The trick is to buy rough gemstones at a price that allows you to feasibly have your stones faceted. If you are not a gem cutter, you will have to pay someone to cut your gems. Setting stones also requires skill.
Loose gemstones can be fairly cheap. Worst-case scenario, gemstones increase in value at the rate of inflation. The Great American Coin Company, for example, offers 250 carats of mixed loose natural gemstones for only $50. Once finished, jewelry has the potential for greater profit. From an investor standpoint, the greater the difference between the wholesale and retail price, the larger your profit will be.
Selling your gemstones
When it comes time to sell your gemstones, jewelry stores are a likely source. You could also try selling them to a pawnshop or auction. As mentioned above, buying and selling gemstones takes knowledge and common sense. Carefully take the time to study the market, and know the worth of your gemstones.
Today, gems have become more appreciated and easier to liquidate. While it’s impossible to predict the future value of a gem, your best investing strategy is to buy as cheap as possible.
Gary Dyner is the owner of Great American Coin Company. Connect with him on Google+.