As investments in Real Estate and stocks continue on a downward spiral, many are realizing that a girl’s best friend may also be her best investment. Very high quality diamonds and other gemstones have a lot of investment appeal if one takes into account global trends in the coming years. The fact is that wealth is being distributed more widely in our global world, but at the same time mines are being depleted of fine quality stones.
Antoinette Matlins is the author of “Jewelry & Gems: The Buying Guide.” She says “The cost of the finest emeralds has increased approximately 75% over the past 2 years, rubies about 70%, and sapphires over 60%.” She notes that wealthy individuals in the Middle East and China are increasingly interested in purchasing top quality gemstones, and their habits go a long way in explaining why prices are moving up.
Investing in gemstones requires a tremendous amount of expertise. Stories of tourists trying to buy gems from individuals near mines in places like the Golden Triangle in Thailand are infamous. Scores of people have been swindled while outside their home countries because they think their hobby or amateur knowledge is good enough to identify quality when buying from individuals at seemingly immense discounts.
If you want advice on what gemstones are most likely to increase in value, ask one of the experts at Firenze. Test our salespeople’s knowledge and you’ll see they are some of the most educated in New York when it comes to high-end gemstones. Our reputation comes from our genuine commitment to each and every person that approaches us for advise.
Rosy Blue, an industry leader in the world diamond market, said that growth in sales to the Gulf Arab region increased by $120,000,000 last year. This is a 57% increase over 1996. For this year, the firm is looking grow $250 mm.
Most people know the (UAE) is a rising star economically, particularly Dubai city. In an age where China and India take the spotlight for the massive size of their growing economies, smaller countries and regions can get overlooked. The UAE economic story is remarkable from every angle. The Emirates’ luxury goods sector is expected to grow to $100 billion by 2010. It is the market for diamond jewelry that is clearly most responsible for the rising sector. “Diamond jewelry sets are particularly important to the region,” DTC Gulf Markets marketing director Jonathan Chippindale says. “In addition to being unique to the Arab world, sets represent a 55 percent value share of all diamond jewelry sales there and, at an average price of $6,000 per diamond jewelry set, they signify an important growth area for the Gulf market.”
Much of the increase in disposable income is due to the dizzying heights crude oil prices are maintaining. Diamonds have a premium over gold in the Dubai emirate state, as consumers believe they make better investments.
In just eight days, the largest diamond to be seen in any worldwide auction will be offered by Cristie’s “Jewels: The Hong Kong Sale“. It is expected to sell for over $6,000,000. It was cut from a 460 carat rough to create the 101.27 carat stone, was given an F color rating by GIA, and is internally flawless.
It is a telling sign that the gem is being sold in the region where economic growth is moving at a massive pace. “Only 3 colorless diamonds of over 100 carats have ever appeared at auction, all sold in Geneva.” says Francois Curiel, Christie’s Chairman of Jewelry. The May 28 auction will sell 345 lots and is expected to achieve in bring revenue of $56 million.
The spring style magazines covering fashion talked a lot about necklaces, using words like “big, bold, bright, and daring” to highlight the most important trends. Necklaces are statement pieces this spring and going into the summer. There were bold necklaces shown in the Elle’s photo coverage of Fashion week. Vogue also pointed out that the cost of jewelry now looks very attractive compared to the “skyrocketing” prices of clothing. High end jewelry is selling at a brisk pace.
Mark Aldenderfer with the University of Arizona, Tucson made an astonishing discovery at an archaeological site in 2004. Just this month he went public with information about his find– the oldest gold artifact ever unearthed in the Americas. The necklace is about 4000 years old, and was found in Jiskairumoko, Peru, the site of ancient hunter/gatherer groups.
The find shows that jewelry was used to differentiate wealth and prestige prior to the development of complex societies in South America. It is commonly thought that only sedentary societies built up more material wealth than they can consume. The people living in this area were always passing through, not settling.
The gold cylinders on the necklace weigh 5.2 grams and measure from 0.4 to 1.1 inches. They are mixed with 11 turquoise colored beads. The piece was made by using gold nuggets pounded by mortar. Flattened sheets were rolled around a tube.
The word around New York is that gold is now truly a precious metal in every sense of the word. The World Gold Council statistics show that gold jewelry demand increased by 22% in 2007 as compared to 1996, and that was before the recent jump in costs for gold bullion.
If prices for gold fall back to the old reality, Firenze Jewels and other jewelers expect it will still be an attractive accessory. Many people want the prestige of wearing beautifully crafted gold items that are out of reach to many. New technical processes allow gold to be designed in ways not imagined years ago. Stones that were previously not used along side gold such as peridot are now paired. Sterling and platinum were what the fashion conscious jumped on, but with the new extravagant price of gold, it will be more attractive to all.