Well this question is always one of the most famous questions because Emeralds have always been used as Investments. Emeralds have been used against hedging since the Egyptians time, they have been used as hedging against the inflation, when the American economy was booming, Americans were buying Gemstones and Diamonds instead of keeping their money in the banks and earning very low interest rates on their deposits.
Today, we will discuss about comparing Emeralds as an investment with other gemstones and whether Emeralds are the best investment in todays Gemstone market place.
The top three Colored gemstones are Emeralds, Ruby and Sapphire. Diamonds are one of the most famous investment commodities as well apart from these three. So lets in this article compare these four most common used stones.
Diamonds versus Emeralds. Diamonds have been used as investment since a long time ago, but recently in the past 20 years Diamonds have become a much more important investment option because of all the marketing that has gone into Diamonds. DeBeers losing its monopoly over the Diamonds market, market becoming more free, and Diamond consumption and investment rising in developing countries like India and china has spurred demand and prices have risen. Diamonds have always been a safe investment. They increase a very fixed percentage over a period of year. If you are an investor who is looking for safe and a normal ROI of maybe around 5% per year for a minimum of 20 years, then Diamonds would be your investment category, not Emeralds. However, if you are looking for a more short term, or even a long term but more importantly a higher ROI with some risk involved, Emerald should be your choice. Not every piece of Emerald will increase in price the same way, remember that. Top quality Emeralds “ALWAYS” go for a premium, as they are usually ir-replaceable. When gemstones become not replaceable because of limited production from the mines, then the sellers can ask for any price, as it does not exist in the market. Today, non oil pieces go for as much as x10 times higher price then oiled fracture filled emeralds. When you compare the top clean quality Emeralds with “medium quality” nice color Emeralds which are still considered high end, they tend to fluctuate a lot, but have a high turnover ratio as the number of end users for such quality is vast, as the world sees a soar in Middle class income people, especially in growing Asian countries like India and China. So it is important to have some insights if you are comparing Diamond with Emerald, insight into Emeralds about what’s selling and what’s not. For example: Commercial Emeralds prices are likely to stay where they are because there is a large production that comes out in such quality for mass production. Also any new mines which comes out usually produces a lot of commercial quality emeralds; but very few clean unoiled emerald pieces.
The king of Gemstones is this red colored precious gemstone. Ruby has always been worn as the most loved gemstone, with connections with love, feelings, blood all making Ruby a very important gemstone to invest in. Prices have ruby have hiked twice in the 21st century. The first time was in 2007 when USA banned all Ruby imports from Burma, so the miners stop producing or cutting, thus the supply went down considerable while the demand stayed the same for this Evergreen gemstone. When that happens, prices go up and that’s exactly what happened. Second hike was in 2011, when the production closed down and Burmese miners became rich from the selling of their rubies at higher prices, when this happened, they stopped selling and could hold on to their stocks of Ruby piles, when they didn’t sell, the buyers bought, and when that happens, prices increases as Buyers have to pay the price seller wants otherwise there is no supply. Ruby compared to Emeralds have been a risky-er investment in terms of its price. I saw this because ruby’s quality and most importantly color factors make Ruby the most difficult stone to grade, judge and thus sell confidently. Isn’t that why there are 100’s of sellers of Ruby from Thailand how can they sell the same gemstone? Because there is such a high gap in the color, for example: Slightly Pinkish red, slightly reddish Pink, Strongly Pinkish red, slightly Pink red, slightly purplish red. What do all these mean? This question only Navneet Gems can answer because it comes from experience. Do something, go to our Ruby collection where we are selling some rubies and compare the different colors and prices, take two same-sized ruby and the prices could be x2 or x3. That’s why Ruby for an end consumer like you would not be a good option. We don’t try to point you towards buying Emeralds, but we prove why Emeralds are really the best investment. Ruby is too risky when it comes to color, maybe a stone you have seen maybe worth $1000 per carat for you, but when you try to sell it you might be asked only $500 per carat for it. You don’t want to run into such a situation where you made a horrible purchase of Ruby gemstone that maybe glass filled to least amount?
Coming in the most varied colors of all gemstones after tourmaline, this cordundum variety is of utmost importance to designers and wholesalers. Sapphires have unfortunately never been too attractive to investors except for the Blue sapphires from Kashmir, Padparadscha sapphire and High end Blue and Pink sapphires especially from Ceylon (Srilanka)
Kashmir sapphires have almost extinct so there is no point in investing 100,000 on a 3 carat clean Blue sapphire from Kashmir. That much money on Emeralds might give you 100 carats of Emeralds that are more likely to sell then just 1 piece. For that reason you should buy an Emerald instead when comparing Kashmir sapphire and Emerald for investment purposes. Another reason for not investing in Kashmir sapphires – what if suddenly Pakistan opens its doors to all the mines of Sapphires in their part of Kashmir, will the market crash? This question is always there as currently the market is closed as Pakistan is too busy fighting with the Indian army to take over land, but what if the fight is over?
Padparadscha sapphires have been a great stone, essentially because of its beautiful and attractive color. Its color resembling a flower, has made this color the most favorite amongst buyers, but its like a sweet. It tastes nice when you eat it, but it does not last that long in the mouth. Similarly, padparadscha were famous 3 years ago, but today they are such low in supply, that the marketing that went into its promotion has really lowered its effects, as good quality ones rarely come around, and remember how Tucson 2008 saw a huge increase in padparadscha sapphires? Because they were diffusing the sapphires with Beryllium, which was almost undetectable treatment, back then, but then GIA now has found ways to keep up to the technology.
In conclusion, Emeralds are well priced to be invested in. 2013, 2014, 2015 was a great year for Emeralds, when it was named the “Color of the year 2013” and that led to a great increase in demand, all the celebrities started wearing Emeralds. Also the drop in prices in 1997’s that sent Emerald prices sky diving, is something to not be scared of anymore as the worst has already happened and now only good things could happen.
Green is definitely a favorite amongst jewelers this year too in 2014 as overstock from last year makes these stones a must in every store. The high awareness of “going green” awareness has large effected Emerald prices and Emerald demand. Emerald just looks so natural, such a natural beautiful gift of mother earth that every women would like to have atleast a piece of Emerald necklace in their closet.
If you are looking for a Emerald quality chart, this is a great resource for an Emerald quality chart that we have produced to explain quality in simpler terms.