Will a Ruby Make a Good Investment?
There are a lot of things to consider and a lot of strategies to take when investing in a ruby or any other type of gemstone. Simply going out and purchasing a ruby gemstone and holding onto it for ten years is not going to guarantee any kind of return, but that does not mean that rubies are a bad investment. Employing a good investment strategy can do a lot to mitigate any risks involved with investing in gemstones.
Fixed Markets
One of the hardest things about investing in gemstones is that it is not a fixed market. In other words, there are no two gemstones that are truly alike. They may be similar, but each gemstone has its own characteristics which impact the overall value of the stone. The location in which the gemstone was found also plays a huge role in determining the value of that particular gemstone as some locations produce rarer gemstones than others.
The most well known place to find ruby gemstones in Burma. Other known places include Thailand, Cambodia, Vietnam, India, Afghanistan, Pakistan, Tanzania, Madagascar, and even in the United States, but Burma is the leader when it comes to producing ruby gemstones. Each location will change the value slightly of the gemstones and that tells the investor how much their stone is worth and how much they should pay for a particular stone.
The most prized of all of the rubies is the Myanmar ruby gemstone. This is where the pigeon’s blood ruby gemstone is most often found, which is a highly prized gemstone is a deep red color and can reflect a little blue in its color, as well. As hue is an important characteristic for gemstones, it is important for the investor to remember that the less red in the gemstone, the less value it has.
Beware of Scammers
Another thing to keep an eye on when purchasing ruby gemstones as an investment is the potential for scams. Just like with anything else of value, there is always a risk of potential scams. The best way to combat this as an investor is to be informed and vigilant. To be informed means to research all of the potential and current ways that a scam might run and any potential warning signs of that type of scam. Being vigilant simply means to always be on the lookout for scams. Every potential seller should be considered a scam until they are fully checked out, but buying from dealers that are known to be reputable is the best way to avoid problems during their transactions.
Often times, sellers will go to great lengths to try and disguise an otherwise ordinary colored rock as a precious gemstone. One way to always avoid this is to never make any purchase without first seeing the gemstone, as one of the most notorious ways in which people run scams is either by telephone or by email. It is never a good idea to purchase a stone that has not been seen and evaluated by a professional prior to purchase.
Check Out All Parties Involved
In order to be vigilant when purchasing ruby gemstones as an investment, a buyer simply needs to do background checks before they commit to any purchase. The first place to start is with the seller and the buyer has to find out the actual name of the seller. A quick internet search will tell the buyer a lot about a seller because when there has been a negative judgment against that particular seller in court, the information will show up with a simple online search. This is not a foolproof way to find out the reputation of a seller, but it might be able to reveal some red flags that may exist.
A similar approach should be taken on the appraiser. A person should never make a purchase of a ruby gemstone without first seeing an appraisal certificate. This certificate will show the person’s name and business that did the appraisal on the ruby gemstone. Again the buyer can do a simple internet search on the person’s name and business to see if there have ever been any negative comments.
The reason for checking both the seller and appraiser’s background information is that there have been plenty of cases where both the seller and the appraiser worked together in order to inflate the actual value of the ruby gemstone. This will give the appearance of an honest appraisal since it is from a third party, but in all actuality it is not honest at all.
After everything has checked out between the seller and the appraiser, the buyer can then proceed with a transaction. One thing to keep in mind when purchasing ruby gemstones as an investment is to only buy the best. That simply means that an investor should only purchase the highest quality of ruby gemstones because not only do these hold a higher resale value, but they also maintain their value or appreciate at a much faster rate than any lesser ruby gemstone.
Higher quality and rarer ruby gemstones are also easier to sell than the lower quality ones. The reason for this is because they are more attractive at auction houses, which are the best venues to sell any rare item. Auction houses are going to be thorough in their research of both the buyer and seller to make sure that the items being sold are reputable and the gemstone is going to be seen by the largest number of potential buyers.
When it comes to investing in rubies, there are many different characteristics that will impact the value of the ruby and investors need to be aware of what they are buying to get the best investment possible. Being thorough will create the best chances of getting a high quality ruby and selling it for a fair price. While gemstones are proving to be great investments in the short term, it is important to remember that long term, tastes can change which may impact the value of the ruby over the long run.
