Eternal value of a precious stone or a soap bubble of the it world?
04.05.2022

Eternal value of a precious stone or a soap bubble of the it world?

Article in EDITOR magazine No. 20

The pandemic that led to the economic crisis changed the world. New circumstances dictate their own rules, and the attention of investors is shifted towards new objects of capital investment. Today, no one thinks about investing in real estate abroad - it has become clear to everyone that one day you may simply not get to one or another country. In addition, no one knows exactly when the pandemic will end and what changes it will cause. Buying real estate in Ukraine as an investment with the purpose of renting out according to economic calculations is a questionable business, since these objects need to be maintained. During this period, more and more investors pay attention to gemstones. And this has a completely rational explanation!

SUSTAINABILITY OF THE INVESTMENT

Gem prices have been rising for centuries. After all, they are a unique, non-renewable natural resource. Their deposits are exhaustive, and the demand will always be higher than the supply, since their value does not depend on the economic or political state of the country, but on the extraction process. For example, the closure of the Argyle mine (Australia), the largest deposit of pink diamonds, caused a huge increase in the price of pink diamonds around the world.

EASE OF OWNERSHIP AND TRANSPORTATION

With a relatively small size, gemstones have the maximum concentration of value. They do not require special storage conditions, are easily transported, do not take up a lot of space and do not require a huge number of documents when buying, as is the case with the registration of real estate or a bank deposit.

CONFIDENTIALITY

Today, privacy is an especially important factor when buying for those who competently and without undue attention to themselves seek to save and multiply funds. The main thing to remember is that you need a professional consultation to confirm the characteristics of the stone before you decide to buy it. This should be a gemologist whom you trust and to whom you can turn at any time in the future.

OPPORTUNITY TO RETURN INVESTED MONEY

There are many exchanges, exhibitions and auctions in the world where you can sell your stone, provided that it was purchased correctly. It is worth remembering that not all precious stones are investments. The concept of "diamond" is not the same as "investment". It is important to purchase such a precious stone that will be liquid and retain its value. It should be a natural stone with high characteristics and a certificate, the indicators of which should correspond to the indicators of the stone itself and be relevant in the market.

RESISTANCE TO FINANCIAL CRISES

We all understand that keeping funds in cash is dangerous and short-sighted, no matter what currency it is. Then we realized from our own experience that real estate cannot be considered an investment - we saw how 5-10 years ago it had one value, and today it has another value. And buying real estate with the purpose of renting it out is an investment with dubious prospects, because it is worth thinking about how many years it will take to recoup the costs. The pandemic has reduced the solvency of the population. In such conditions, real estate also has to be maintained, which will increase costs rather than provide a stable profit.

At the same time, keeping finances in a bank account is not an option. The banking system is becoming increasingly controlled by the state, but at the same time it is less comfortable for customers. Banks, as before, do not provide guarantees to depositors of large sums, demanding in turn stricter reporting on the origin of funds than ever. Moreover, there are widely known cases when the bank opened a bank cell without the participation of the client.

Analysts note that companies in the IT sector often do not pay dividends, and surplus profits are used to buy back their own shares, which provokes a jump in their value on the stock exchange. And this figure can deviate from the correct one by large values.

If you compare investments in the field of IT and investments in precious stones, you should think about the real value of the first. The value of the shares of such companies as Tesla, Netflix, often rises sharply in price, then falls sharply. And this process is completely detached from reality and has nothing to do with the state of the business itself. Analysts note that companies in the IT sector often do not pay dividends, and surplus profits are used to buy back their own shares, which provokes a jump in their value on the stock exchange. And this figure can deviate from the correct one by large values. Today, investors languish in anticipation, when the thunder will roll and the soap bubble, known throughout the world as the IT-bubble, will inevitably burst!

Think about it, because today it is difficult to earn capital, but it is even more difficult to keep it. Therefore, when forming an investment portfolio, remember that financial analysts recommend keeping part of your savings in gemstones. In addition, it is worth considering that not every gemstone is a competent investment. For example, the share of investment diamonds from the total volume on the market is only 5%. And of all the possible ones, you need to choose such a precious stone, which will become a reliable investment.

The share of investment diamonds from the total volume on the market is only 5%. And of all the possible ones, you need to choose such a gemstone, which will become a reliable investment.

Remember that any gemstone you are considering as an investment must have a certificate issued by a gemological institute with an impeccable reputation. At the same time, only having a certificate for the stone is not a guarantee of the correct purchase. Buy from a professional who has a gemological education and to whom you can always turn later. After all, it is the gemologist who will be able to tell what is written in the certificate, whether the certificate corresponds to the stone, whether the stone was refined, whether it is synthetic or natural. It is the gemologist who will be able to answer whether the stone is worth buying.

Today, there are a lot of pseudo-professionals working in the gem market who talk about buying gems, having studied the issue exclusively on the Internet. But gemology is not just a theory, it is primarily an experience that allows a gemologist to give a professional assessment of a precious stone. In addition, you will not find the special literature that is read in gemological institutes freely available on the Internet.

Get your finances right. When buying gemstones, always go to a professional who has an education obtained from international institutes, works in the given field, knows the market and understands what he is selling. Because only a professional gemologist will give a personal 100% guarantee that the chosen diamond is an investment. It is said all over the world that the most important advantage of investing in gemstones is the extremely low level of risk. But, believe me, it will only work if the stone is an investment stone and you turned to a really experienced professional.

Only a gemologist will be able to tell you what is written in the certificate, whether the certificate corresponds to the stone, whether the stone has been refined, whether it is synthetic or natural. It is the gemologist who will be able to answer whether the stone is worth buying.

When buying a gemstone, take a guarantee from the seller. Ask him the question: "Will he later buy this gemstone from you if you wish to sell it in the future?". Only in this case, investing part of your capital in gemstones is a smart decision. Invest capital in gemstones, transforming your financial means into a more stable equivalent. After all, the richest families in the world have kept and today continue to keep a part of their wealth in the form of gemstones for a reason. And if you decide to invest part of your capital in gemstones, be sure to contact a professional whose opinion you trust! After all, trust is a key factor when buying gemstones.

Your shopping cart is empty!
You have successfully
send a request
We will call you back
as soon as possible