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Analysis of Jewelry Trends and Investment Principles

By OGP Reporters / Members Contribute File Photos

Oh Good Party

In most cases, the return on gemstone investments is equal to the rate of inflation. When a gemstone's resource gets limited, it might become even more valuable. Nonetheless, we would want to warn collectors not to ignore the hazards that may be present in specific situations. For example, the discovery of a new mine, which would lower the gemstone's worth; being enticed by an exaggerated price due to market hype; and synthetic gemstones made with modern technology.

"Jewelry is a woman's best friend," has always been an undisputed rule, and jewellery is intended to accompany a woman's life. Those pieces of jewellery that symbolize good fortune, deep admiration, and holy vows are accompanied by various eras and stages, and they give a woman a distinct and charming aura. However, a gemstone's brilliance rests not only in its beauty, but also in its monetary value. The market trends in the jewellery business are presented by OGP, which can aid you in your investment decisions.


With its consistent value growth, the diamond has always been a favourite option among investors and collectors. However, not all diamonds are equally valuable as collectibles. According to market trends, diamonds larger than 3 carats are expected to retain their original value; those larger than 5 carats are likely to appreciate; and those smaller than 0.5 carats are likely to depreciate. Furthermore, it is critical to carefully evaluate the 4Cs of diamonds while purchasing a diamond.


Natural emeralds are a perennial favourite due to their scarcity; the exploitation of restricted resources implies a predictable and consistent price growth, especially for those between 5 and 10 carats. Because of their natural size limitations, rubies have a higher appreciation than diamonds; superb rubies larger than 5 carats are exceptionally rare. As a result, the value of 3 carat rubies has increased by more than 2000%, and it has been gradually increasing in recent years. The price of sapphires has increased by more than tenfold in the previous five years, but it is still one-third the price of comparable-quality rubies. It has the capability of being appreciated.


It's worth noting that natural rubies and sapphires will include impurities. Those that appear to be clear are frequently synthetic or treated materials. Because the consumer market for rubies and sapphires is already established, there is very little chance of finding them at a low price, limiting the amount of profit that can be made. However, like with all natural stones, the larger the carat, the more valuable it is.



The jadeite is another item worth mentioning. In the last century, it has become the most valuable gemstone in China. A pair of imperial green jadeite bangles, for example, that sold for 100,000 yuan a decade ago is now being auctioned for more than 25 million yuan.


Although diamonds, rubies, sapphires, and jadeite are the most popular investment options at the moment, as the gemstone market expands and finite supplies are depleted, a number of new gemstones are gaining popularity and offering more investment possibilities.


The following gemstones are increasing in value.


The tourmaline gemstone is ranked first on this list.Although the price of tourmaline was low eight years ago, it has recently overtaken the rate at which rubies and sapphires are mined in South America. The price of a translucent, finely coloured, fine-sized tourmaline has tripled. The word "tourmaline" (bi'xi) in Chinese has a similar sound to "warding off evil spirits" (bi'xie). Red tourmalines were worn by imperial tradesmen and imperial court officials because they resembled rubies the most. Popular tourmaline variations include bi-color tourmaline, watermelon tourmaline, and green tourmaline. Due to inconsistent availability and other variables such as processing issues, the price of tourmalines has climbed at a 30 percent annual rate. The average price of a quality tourmaline is over 10,000 yuan, not to mention its continuous future growth potential.


Tanzanite is another gemstone that is gaining popularity, and it has been used frequently in jewellery designs by well-known jewellers in recent years. Tanzanite has a shape and colour similar to sapphires, however it is less hard, and the colour seems to be a peach and violet tone under varied lighting. The sole natural point of origin for tanzanite is the region surrounding Arusha, Tanzania, and the price has been rising at a 50% yearly pace in recent years. Because of the craze among jewellery producers and the scarcity of resources, the value of tanzanite is expected to rise in the future. It's vital to remember that the value of gemstones is determined by whether they're natural or synthetic, and the deep and rich velvet blue of tanzanite is the state formed by the natural burning process, so pay attention when selecting.


The third tsavorite is a new favourite that appears frequently in new collections of major high-end jewellery. It quickly became a sought-after product after emeralds because of its rich colour and superb clarity. Its purchase price Make a beeline for the high-end jewels. Large-grained tsavorites weighing more than 7 carats are extremely rare, with 10 carats fetching more than $300,000, and the higher the quality, the higher the price. It's worth noting that all tsavorite gemstones are unprocessed, which is extremely important in a market where devices are increasingly used to assess a gem's authenticity. Because there are now no processing guidelines for tsavorites on the market, this is the case.


Opals are also popular among jewellery makers due to their ability to change colour. Natural opals are extremely rare, and 90% of opals on the market come from Australia. Opals have received little attention to date, although their value is rapidly increasing. As resource depletion occurs, its value is projected to rise, as it has in the past with other gemstones. The opal has a solid market and has a 20 percent yearly growth rate.


The red manao stone, which was depleted during the Qianlong dynasty; blue amber, which many amber collectors prefer; chrysoberyl cat's eye, a rare gemstone and a favourite of many jewellers; lazurite; red coral stone; spinel gemstone; and green quartz are also on the list of prospective value increase. Its present value has risen to five times that of its former value.


A gemstone's grade is determined by elements like as clarity, colour, cut, weight, shape, transparency, polish, and symmetry, as well as treatment, source rarity, politics of origin, and market popularity. However, there are a few basic concepts that collectors can refer to and pick from.


First and foremost, the more vibrant the gemstone's colour, the better. With the exception of diamonds, gemstones that are black, white, transparent, or multi-colored are less valued within the same family. Second, the gemstone's brilliance is determined by its accurate and appropriate cut; the stronger the cut, the better. Finally, a high degree of clarity and a low number of inclusions are always preferable. Those with a high clarity rating are, of course, more expensive. It's also worth noting that some gemstones that appear to be flawless could really be synthetic. Fourth, the rarer a gemstone is, the heavier it is. Fifth, the gemstone's place of origin is indicative of its quality and purity. Rare gemstones are often formed in a certain type of environment. Sixth, despite the fact that some gemstones are heated repeatedly to improve their colours and clarity, unheated gemstones are more valuable as collections. Furthermore, designs by well-known jewellery houses like Bulgari, Tiffany, and Cartier, as well as other well-known jewellers, might be more enticing than the gemstone itself, which adds to the value of a particular type of gemstone.


Not all coloured gemstones are worth collecting or investing in. When making a decision, one frequent principle is to predict a gemstone's development potential over the next decade. Gemstones that are scarce in nature are frequently more valuable. There are two different ways to invest in gemstones. The first is to buy the gemstone itself, and the second is to buy equities in associated companies, such as the mining company. If you want to invest in the gemstone itself, those you'd find in auctions usually have a unique history, such as having been in the possession of a celebrity person; these are all elements that would raise the gemstone's worth. Those that had previously belonged to aristocracy or royal families are much more uncommon and valuable. You can also buy from the corporation that owns the mine or a secondary wholesaler; otherwise, local pawn shops are your best chance. The purchasing price must be lower than the final retail price to make a profit. In most cases, the return on gemstone investments is equal to the rate of inflation. When a gemstone's resource gets limited, it might become even more valuable. Nonetheless, we would want to warn collectors not to ignore the hazards that may be present in specific situations. For example, the discovery of a new mine, which would lower the gemstone's worth; being enticed by an exaggerated price due to market hype; and synthetic gemstones made with modern technology.


Background study is usually important before making any investments in order to grasp the actual value of the gemstone, such as an evaluation certificate from a certified institution. GRS (Gem Research Swiss) is the most preferred institute for coloured gemstones in the present international market. GRS was founded in 1996 by Dr. A. Peretti. The most thorough certificates are GRS certificates, which offer consumers with information such as the gemstone's origin and treatment techniques. GRS has research labs in Bangkok and Hong Kong at the moment. Furthermore, the GIA (Gemological Institute of America) is a good option.


Recruiting a professional evaluator is the best method to prevent dangers. The value of a gem is directly proportional to its quality. We urge you to attend the events for gem collectors if you want to gain enough expertise and information for your future investment. If you're seeking for high-quality gemstones, reputable associations' auctions are the finest place to look. The world diamond trading centres of Antwerp, New York, Hong Kong, and Tel Aviv are advised for diamond investments. It is critical to remember that, while gemstones can be traded for cash, unless you own a jewellery company, selling them at retail price is extremely difficult if they have not previously been owned by a celebrity figure; in this case, your only option would be to sell them to other investors and sellers. You may be compelled to pay taxes as part of the process. In these cases, having a good awareness of important process fees and production expenses will come in handy.


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