By: Dr. Thomas Shröck, Founder and Managing Partner for The Natural Gem
Whether you are someone who has been investing for quite some time, or you are someone with an aptitude for investment, you will understand the fear of making the ‘wrong’ decision when building your investment portfolio. In fact, 41% of Britons will avoid investment risk at any cost, according to an Aegon survey on people’s attitudes to investment risk.
In the last couple of years, there’s been a rise in risky investment options, such as crypto currencies, promising wealth beyond measure if buying the right coin at the right time. But in most cases, the riches obtained via this route will disappear just as quickly as you got them.
In the wake of the Covid pandemic and the economic uncertainties that have followed, more people are seeking ways to make smart investment choices that will strengthen their portfolio and make more lucrative returns in the long run.
When considering low-risk investment options, most people will immediately think of gold. After all, throughout history, few investments have rivaled gold in popularity as a hedge against almost any kind of trouble, from inflation, to economic upheaval or currency fluctuations, to war. But what many people don’t know is that coloured gemstones provide higher returns on investment than gold. One kilogram of gold has a value of approximately £50,000, whereas one kilogram of fine rubies are worth upwards of £150,000,000. Considering that rubies, sapphires and emeralds have increased in value by 6-8% per annum since 1995, and continue on the same trajectory, it is safe to say that if you’re a betting man this is where you should put your money.
As it happens, coloured gemstones are one of the oldest forms of investment assets, dating back more than 5000 years, and have been traded internationally ever since. Aside from the practical benefits provided by coloured gemstones, such as high portability and being easy to store, they also provide an emotional connection to the past.
Coloured gemstones have always been limited in supply, with many mines already depleted. But due to the recent renaissance in popularity, worldwide sources of coloured gemstones are becoming increasingly exhausted, making them more scarce and therefore more valuable than ever before.
So what are some key factors to consider when considering investing in gemstones?
- Define your end game. What is it you want to achieve with your portfolio? Is it long-term gains you are looking for, or are you looking to earn a quick buck? If you decide on the latter, you may realise that investing in coloured gemstones may not be for you.
- Do your due diligence. Establish the time and money you are willing to spend on acquiring and maintaining the quality of the gemstone you want to invest in. While coloured gemstones are easy to store, because they are tangible assets you may want to consider investing in a suitable storage solution, like a safe or trusted storage provider.
- Timing isn’t everything. Naturally coloured, untreated gemstones are non-volatile and are not affected by worldwide economic events. Value increases steadily and over time, so don’t hold out for a perfect time to invest, because you won’t find one. Any time is a good time to
- Trust the process. Because value increases steadily over time, it is important to have confidence in the long-term value of your investment. You won’t see spectacular returns overnight, but you can relish in the fact that you’ve made a strategic long-term investment that will yield lucrative returns over time.
So if you are currently in the market for a low risk asset to add to your portfolio, or maybe just looking to diversify your investments, natural coloured gemstones make an excellent, if not the ideal contender to invest in.
Not only will they stand the test of time, but you will possess a unique and tangible piece of history that can be passed on for generations, providing a lifetime of sentimental value that no one can ever put a price on.
About the author:
Dr. Thomas Shröck is the founder and managing partner of The Natural Gem and global expert in natural gemstones investment.