Purchasing diamonds, or rather rubies, sapphires and emeralds?

  • What are precious stones?
  • The characteristics of rubies, sapphires and emeralds.
  • 3 reasons why purchasing diamonds is an attractive investment.

Apart from real estate and securities, it is also interesting to expand your investment portfolio with movable goods or raw materials, such as precious stones. Purchasing diamonds as an investment is here one of the attractive options, but what about precious stones such as rubies, sapphires and emeralds?

What are precious stones?

Precious stones are minerals that are formed in very specific natural circumstances and of which the origin is fundamental in determining its value. Typical are the natural inclusions that make every precious stone unique. The different types of precious stones can be distinguished through transparency, colour, brilliance, rarity and the hardness of the stone. The hardness of a stone is shown on the Mohs Hardness Scale. Diamond is the hardest type of precious stone, with a score of 10/10, and is therefore the most attractive investment. People who wish to purchase diamonds should also consider the 4C’s as a means of determining the diamond’s value.

The characteristics of rubies, sapphires and emeralds

Following diamonds, red rubies (corundum) are the hardest precious stones, with a score of 9/10 on the Mohs Hardness Scale. Generally, rubies are very small and much rarer than diamonds. Rubies larger than 3 carats are extremely uncommon and of inestimable value. As opposed to purchasing diamonds, investing in rubies is almost only accessible to specialised investors and investment funds that are able to negotiate without intermediaries.

Like diamonds, sapphires exist in every colour imaginable, but the iconic blue sapphires (cornflower blue or royal blue) have the highest value and are the most prized. Similar to rubies, they are generally small in size (> 4 carats). Because of their strongly present inclusions, emeralds are unique and, for experts, easy to differentiate from one another. Deep vivid green emeralds with a high clarity grade are the most uncommon and most prized among collectors.

 Three reasons why diamond is the most attractive as an investment

  1. Unlike the above types of precious stones, the purchasing and selling of diamonds is strictly regulated by national and international regulation and legislation. The use of certificates is here one of the most important protective measures for investors, retailers as well as jewellers. BAUNAT DIAMONDS always provides a certificate with its diamonds.
  2. Not only the prices for basic commodities such as oil and wheat volatile, this also applies to precious stones such as rubies, sapphires and emeralds.  Over the past decades, the price evolution of diamonds is more stable with a steady upward movement. Experts expect the same stable price increase for the next years to come.
  3. BAUNAT DIAMONDS makes the purchasing of diamonds accessible to every type of investor. Our experts will gladly advise you on the different types of diamonds that suit your investment strategy. Do you wish to resell your diamonds over time? Thanks to the higher price valuation and the growing demands is profit virtually a certainty.

Please feel free to contact our experts.

Author: Daan Deruyter