| I decided long ago that investing in the stock | | | | First look at the grading. A good gemologist can |
| market is a fairly treacherous undertaking. Don't | | | | distinguish between synthetic stones and real ones |
| get me wrong, it's perfectly fine for most people | | | | and they can often sometimes even tell you |
| and in fact I do invest a little bit in the stock | | | | where the stone came from because certain |
| market myself in carefully chosen mutual funds. | | | | countries command higher prices for some |
| But as far as picking stocks goes, I'm horrible at it | | | | stones. |
| so I tend to look for other vehicles to invest my | | | | Next look for any flaws. The fact of the matter |
| money in so that I have a nice nest egg for | | | | is, most gems have some sort of flaw but as |
| retirement. | | | | long as it's not a huge flaw you should be okay. |
| Especially today when we're facing potential high | | | | Next look at the color. Color is often one of the |
| levels of inflation for the years to come, it's a | | | | most important determinants of price, as crazy |
| good idea to diversify outside of the stock | | | | as that may seem! Never look at just one stone |
| market into physical items like gold and precious | | | | at a time, you're always going to want to look at |
| metals and precious stones such as diamonds. | | | | it next to several others because the clarity of |
| But many people don't realize that diamonds | | | | the stone will jump out at you in relation to other |
| aren't the only stones that are worth investing in | | | | stones in a way that it won't if you look at it |
| and in fact rubies, emeralds, and sapphires may | | | | singly. |
| be an even safer investment than diamonds and | | | | The best place to buy gemstones is at a family |
| that is exactly what I'm going to talk about in this | | | | operated jewelers that has been around forever |
| article today. | | | | and has a great reputation within your community. |
| Back when the prices of most investment grade | | | | Larger chains often just buy in bulk and |
| diamonds plunged as much as 20 to 30%, many | | | | sometimes they don't receive the best selection |
| of the colored gemstones mysteriously held on | | | | whereas your small-town jeweler knows exactly |
| and even had price gains. How is this possible? | | | | what he or she is looking for and only buys the |
| Well the reason is one word... scarcity. In any | | | | best. |
| given year there may be only $200 million-$300 | | | | Investing in gemstones other than diamonds is |
| million worth of rubies, sapphires, and emeralds | | | | not for everybody and in fact you may have to |
| sold in America. | | | | do more research than you're willing to do or |
| Even a first-year economics student can tell you | | | | want to do; but if you think that it's something |
| that when supply is down, price goes up so | | | | you may be interested in, there aren't many |
| scarcity leads to price increases over time. | | | | more satisfying ways of investing out there than |
| Unfortunately most people don't know a whole lot | | | | to be able to hold these beautiful jewels in your |
| about investing in these gems. So here are a few | | | | hand day after day. |
| things you should look at. | | | | |