A guide to buying gemstones
Should we add capital appreciation to a diamond's four 'Cs' or are gems a less-then-sparkling proposition? Hettich's Nicholas Chinn gets some clarity on whether diamonds really are 'forever' when it comes to investment.
Capital appreciation is certainly going to be the first consideration when you're selecting an investment. Investing in fine jewellery has been proven to be a wise choice, particularly in times of economic turmoil. It goes back to that idea of treasure, which historically was the safest place to store your wealth - as long as you remembered where it was! People who have been on the sharp end of stock market slumps during the boom bust cycle of the last few years are looking for alternative ways to keep their money secure. Diamonds can give them that security.
A fourth-generation family company, Hettich has been in the business of selling precious items for more than a century.
Fine jewellery and diamonds are real things, with solid financial values which will increase with inflation. Furthermore, you can enjoy them every day, which is just priceless. The durability of diamonds can also be seen in how diamond prices have performed over time. The strength of diamonds is clearly demonstrated, with prices in all sectors steadily increasing even during the economic downturn.
Why invest in gemstones?
Investing in gemstones and jewellery is nothing new. Their portability and value have made gold and fine jewels traditional ways to carry wealth throughout history, as well as being prized possessions for their beauty. Hettich specialises in all types of rare and natural stones and Nicholas Chinn explains that if you're looking for a gem of investment, it's worth exploring the more select side of the market.
"For investment purposes, I would recommend rare fancy coloured diamonds, Burmese rubies, sapphires and fine Colombian emeralds as the best stones to choose," he said. "If you want to buy white diamonds, then select the highest quality you can. Large colourless stones with the least inclusions are the rarest, and have a higher value, making them a better proposition for investment purposes."
Unique and valuable, diamonds and rare gemstones would certainly be a sparkling addition to any investor's portfolio.
"Our belief is that you should buy a diamond because it is a beautiful gem that will give you great pleasure. But as well as being something you can enjoy now, it may well prove to be a good investment in the long term."
Nicholas Chinn of Hettich Jewellers is currently studying to become a qualified GIA diamond grader.