Strap: Wholesale gemstone investment can be your safest bet against an unpredictable market. Here are some of the basics you need to know about

• Introduction: Why buying wholesale coloured gemstones could prove to be a good investment 
• Why tier-1 wholesale platforms are best for buying investment-grade gems
• How origin and treatment influence the valuation of gemstones and how certain specimens are more highly valued than others 
• The four C’s. What to know about color, carat, cut and clarity in coloured gemstones 
• How to pick wholesale gemstones that are rising in value 

A gemstone can be a safe, long-term investment since investment-worthy gems typically do not depreciate in value. The most widely accepted gemstone investment is diamond; however, coloured gemstones are a better choice if you’re looking for a stable deal, especially in wholesale gemstones. A September report suggests that coloured gemstones’ non-correlative nature to macroeconomic developments makes them a great investment. Several market reports suggest that sapphires and rubies have outpaced diamonds between 2006 to 2013. According to the Gemval valuation guide, prices for rubies rose by 47 per cent while prices for 1ct diamonds have increased at a 32 per cent lower rate since 2006, according to the RapNet Diamond Index.

Premium, wholesale coloured gemstones like emeralds, sapphires, and rubies are hard to hoard and will typically experience steady growth even when the market is going through a slump.

 

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 Besides the four C’s, there are a few factors which may determine whether your gemstone investment will truly serve you well and hold its value especially if you’re considering going for ethically-sourced wholesale gemstones. Treatment and origin can influence the valuation, while there are different systems in place to determine retail and wholesale prices. Here’s a quick primer on what you should know before investing in wholesale gemstones:

Choose tier-1 wholesale platforms a

• Verified wholesale platforms are always a more preferable option over retail and secondary dealers. Tier-1 wholesale gemstone platforms that mine and cut the stones themselves ensure traceability and offer the best prices. Navneet Gems, for example, works with its in-house cutting and polishing unit which makes it easy for buyers to trace the ethical credibility of their gemstones

• Trust and credibility are important for a safe investment, so while choosing wholesale gemstone platforms, you must ensure your supplier is reputable and dependable. For an investment, only consider untreated natural-coloured stones (since the mid-nineties, the market prices for naturally coloured, untreated gemstones have tripled). Navneet Gems, for instance, exercises exclusive quality control protocol from the beginning to the end of the mining and production process, ensuring that wholesale loose gemstones for sale are of the finest quality and finish, especially when it comes to wholesale sapphires.

• The World Bank estimates that at least 80% of sapphires worldwide are produced by artisanal and small-scale miners (although when it comes to rubies and emeralds several large-scale mining companies have come into play). However, a lot depends on the country where your preferred supplier is based (diamond districts in some countries, for instance, have gained popularity for open gemstone markets). You can also locate some verified primary and secondary dealers on the Internet. If you’re buying online you can verify the facts and read up on reviews or compare prices. But it’s always better to reach out to the supplier to know more about inclusions, treatments, sourcing etc.

• Investment-grade gemstones come with an internationally recognised certificate from a gemological institute. Some of the most trustworthy and recognised certification labs are IGI (International Gemological Institute), the Gemological Institute of America (GIA), GRS (Gem Research Swisslab) etc. Wholesale rubies, sapphires and emeralds are some of the most recommended options for gemstone investments. A recent trend report suggests one can earn about 10-15% annually if one invests in the right coloured gemstone.
• Most reputed suppliers will guarantee multiple layers of certification for their gems. In fact, with certain high-end gemstones that have been in stock for an extended period of time, suppliers are also ready to renew the certification at a gemological laboratory and have the stone re-appraised by an expert, to determine its current value and align it with the market’s retail price.
• It’s important to determine the kind of investment you’re trying to make; while offline wholesalers are looking to sell gemstones in bulk, if you’re looking to buy a high-quality raw gemstone in a large carat, first-tier platforms or curated auctions are ideal. If you’re looking for bulk quantities, wholesalers or certain retail platforms can be helpful. 

 

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What to buy: Origin, treatment, types

• A good rule of thumb is to judge the value and rarity of a gemstone based on its overall availability. The rarer the gemstone, the bigger the value, even when it comes to ethically sourced gemstones. Experts prefer diamonds, emeralds, and sapphires for their solid returns but they are also rarer than most gemstones which makes them solid investment options. In fact, some naturally coloured gemstones which are in limited supply can hold their value and market demand better than diamonds.
• The Padparadscha sapphire, for instance, is incredibly rare and found mostly in Sri Lanka and parts of Madagascar and Tanzania. Its unique pink and orange-coloured profile is unique and coveted by collectors. In fact, even a smaller or relatively duller padparadscha with lesser clarity may fetch great value simply owing to its rarity and overall demand. Most gem experts believe that the finest padparadschas are sourced from Madagascar but Sri Lanka is also a good option, although the latter’s gems are usually more pink-ish in tone and are priced at approximately 20 percent less.
• Remember a gemstone’s origin is an important selling point for traders, collectors and consumers. Colombia, for example, is still a major source of emeralds and produces some high-quality gemstones. The country produces 55-95% of the world’s emeralds and is a reputed traditional source. Brazil and Zambia are also known to produce good specimens. Mozambique is a top producer of rubies, while Madagascar and Sri Lanka produce some of the finest sapphires.
• Most commercially available gemstones in the market are heat-treated to alter colour or increase clarity. Records suggest only about 2% of gemstones in the global market qualify as ‘gemstone quality’ without any treatment. And untreated, natural gems are more valuable than treated gemstones and can command 30% to 50% higher prices. To put it simply, the more treatments a stone has undergone, the less its value. 

 

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The four Cs

• Cut, colour, clarity, and carat are crucial factors in gemstone investment. Gemstone colour can be broken down into hue and saturation. The less visible the secondary colour on a gemstone, the more ideal the hue. The saturation of a stone depends on the intensity or purity of a colour. Investment-worthy gems generally exhibit strong saturation, an even colour and eye-clean finish. 
• With sapphires, for example, the most valuable and the most coveted colour profiles are produced in Ceylon and are famous for their vivid, deep medium-blue hue. They are also lighter in tone than sapphires found in parts of Thailand or Kashmir. Pigeon blood is a terminology used to determine the value of certain rubies which are bright red with a minimal hint of purple.
• The clarity in gemstones usually refers to inclusions in the stone. Gemstone inclusions can reveal a lot about a gem’s origin and how it was formed. Inclusions act as a marker for a gemstone’s overall quality. In sapphires, for instance, even the best natural sapphires specimens can exhibit some form of inclusion. The ideal clarity grade for sapphires is eye-clean, which refers to no visible imperfections. 
• The cut is another important aspect of gemstones. The Gem Society explains that wearability, clarity and optical performance are of utmost importance when it comes to identifying the perfect coloured gemstone. It’s important to consider what the cut does for the colour of the gemstone, whether it enhances the light performance or boosts the illusion of depth.
• Though larger carats are coveted, certain smaller gems like rubies or sapphires can cost you a small fortune, with or without inclusions. A high-end 1 or 2-carat stone can have retail prices between 1,000 – 3,000 dollars per carat, while 2 to 3-carat stones will probably sell for about twice the price per carat. 

 

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Pick gemstones that are rising in value

In an unpredictable economy, it’s always advisable to pick gemstones which are only rising in value. Prices of rubies and wholesale sapphires have only been increasing in the last few years, even when the market experienced a major slump. The sapphire industry has been dominated by small-scale sapphire miners and the supply of rough has not been monopolised which makes sapphires harder to hoard and makes it a recession-proof investment. The same applies to tourmalines and rubies since their mining is mostly regulated. 

In the last decade, coloured gemstones have experienced some of the most substantial price jumps. A new report suggests, that sapphires and emeralds have increased in value by 5-8% per annum since 1995. This development can be explained by widespread certification, access to industry transparency and gemological analysis. In the past few years, Australian parti sapphires have experienced a steady boom in the global wholesale market as their aesthetic merits were re-considered by gemologists and the commercial market. 

Conclusion

If you’re exploring coloured gemstones and want to invest your money in wholesale gems, go for individual consultation (preferably offline) before you make the decision to invest your money. Resale value is something that buyers should be alert about and expert traders or sellers can give you the full picture, depending on your budget.

 

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Some gemstones experience better growth rates and are thus better for first-time investors who are looking to diversify their portfolios and reduce risks. Coloured gemstones hold their value and do not fluctuate as much as gold or stocks and in some cases, the longer the investment window, the higher the return, which makes this such a fail-safe option.