Resale value of Stones

[binay1702]

I bought few stones from a supplier. Stones are really nice and as per descriptions.But my concern is that they are not treated as investment items as like Gold . Even my supplier told me that he can take back the purchased stones only if they are not as per description. He showed his inability to take it back even at discount of say 20% , 40% on any other ground.

 

[chrono]

Gemstones are not investments. Buy them only because you love them and get personal enjoyment out of them.

 

[theredspinel]

If you brought it as investment it would have made sense to do some research into the intended items, before purchase.

 

[kenny]

Gold is bought AND sold as the same agreed-to price worldwide, plus a small commission.
That makes gold a commodity.
Gems are not a commodity.

When it comes to gems, the public must buy at retail, but sell at wholesale.
If wholesale is half of retail you'd have to wait for prices to double just to break even.
So much for the investment.

I agree, we should only buy gems for enjoyment, not investment.

 

[elle_71125]

Gold is bought AND sold as the same agreed-to price worldwide, plus a small commission.
That makes gold a commodity.
Gems are not a commodity.

When it comes to gems, the public must buy at retail, but sell at wholesale.
If wholesale is half of retail you'd have to wait for prices to double just to break even.
So much for the investment.

I agree, we should only buy gems for enjoyment, not investment.

I haven't seen it put quite like this before. Very well said Kenny!

 

[Muhammad_Ali]

As I mentioned in another thread about gem investments:

Unless you are buying 7 figure stones from Sotheby's signed by Cartier or VCA, and holding it for a few decades, your stone won't appreciate against inflation.

The real profit in gems is buying rough to cut. Rough stones are generally 10-40% of cut stones. Unless you're an experienced lapidary, I'd stay away from this market. It's very hard to tell the quality of the final product from the rough.

As per your supplier not accepting returns, this is fairly common in my experience. There aren't a ton of buyers for colored stones. Most people just want diamonds, the ones who do venture into the colored stone arena often don't care about the 4 Cs, synthetics, treatments, etc.

When your market is so limited, the per unit cost is so high, and insurance costs an arm and a leg, this policy is understandable. As Kenny mentioned, we have to buy at retail and sell at wholesale.

 

[PrecisionGem]

The real profit in gems is buying rough to cut. Rough stones are generally 10-40% of cut stones. Unless you're an experienced lapidary, I'd stay away from this market. It's very hard to tell the quality of the final product from the rough.
.

10-40% is very optimistic an rarely achieved. Most cutters, if they can get 50% are very happy. Often with more expensive stones is much less. Very common for the rough to cost 80% of what the finished stone is. Then you need to factor in all the rough you end up getting parcels that never get cut due to bad shapes, or too many inclusions, the cost of the trips to obtain the rough, there really isn't too much to be made cutting stones, unless you can sell them at a high retail price.

 

[Muhammad_Ali]

10-40% is very optimistic an rarely achieved. Most cutters, if they can get 50% are very happy. Often with more expensive stones is much less. Very common for the rough to cost 80% of what the finished stone is. Then you need to factor in all the rough you end up getting parcels that never get cut due to bad shapes, or too many inclusions, the cost of the trips to obtain the rough, there really isn't too much to be made cutting stones, unless you can sell them at a high retail price.

True. I was thinking more of the local level where buyers buy large bulk lots of small, semi-retired rough and facet it. But yes, with large stones there can be even less margin. You have to be able to get Tiffany prices for it to be worthwhile.

 

[Ceaho]

Gemstones are investment itens when you buy it at wholesale prices, and when the stones are really rare, beautiful, and unquestionable. To buy at wholesale you will need to travel to mining sites. An overseas travel will cost u$2,000+ so you need to buy u$20,000+ to compensate the travel costs. And to buy really nice itens you have to be educated and PS is a good way to learn. I agree that questionable jewelry and tiny stuff arent investment and should be bought when someone loves and enjoy it, but probably wont be able to recover the price paid. Anyway people who dont have the amount to travel and buy as investment should buy only for enjoyment and fun.

 

[Arkteia]

If the gems are very rare (alexandrites), or bought before new enhancement ways were developed (such as heating of garnets and oiling and irradiation of everything else, it seems), one potentially could sell it if he holds onto the stone for long enough time. Also, large expensive stones such as rubies seem to be an investment. Spinel market has experienced unbelievable surge - I bet everyone who bought spinels when they were viewed as "cheap alternative to ruby" might make money on them, or at least break even.

However, the vendors are interested in selling, not buying back - and why should they? It is good if the vendor has an "upgrading" policy, and many do, maybe yours will be interested in upgrading your stone instead of buying it back at 50% discount?

But, no, it is impossible to look at them as investment. I look at everything else around my stones - platinum, gold, even diamonds - as potentially having resale value, but not colored stones themselves. Even if they are red and juicy.

 

[binay1702]

And they are durable too it will stay lifelong or for generations until they are not stolen or lost. My question is actually Colored stones have all qualities of gold and diamonds despite of that we don't get the resale value easily like diamonds and Bullion.

 

[normanintheskywithsapphires]

Binary1702, are diamonds easy to resell at buying prices? Like gold?

 

[valeria101]

I missed at least two buys that would have been great speculative assets of sorts; then again, I would not dare make a sport out of such venerable trade ...

 

[Ceaho]

I still think any kind of gemstone can be an investment when they are big, beautiful and bought at prospect at wholesale prices. It's my opinion and i disagree who say not, but im not the owner of truth and acept and repect who dont think the same.

 

[Barrett]

Diamonds are all smoke and mirrors. It's such a "sucker" stone...sigh...
Sure, gemstones can be investments. You just have to know, which stones are the stones that will give you a great ROI. LOL...
Mahenge spinels...nuff said, right there. TL and I, as well as many of the other long term Pricescope CS members, who were around 7, 8, 10 years ago, saw the desirability and value these stores had at that time. I am not any of us realized the speed and value they would really take on in just a couple years down the line.
Spess garnets...no new discoveries of note have occurred, that I know of. Their value should climb more and more as the years go buy, especially if you bought Namibian.

 

[Ceaho]

Actually i think even tiny stones can be an investment, if they have the best color and saturation, like a saturated dark blue paraiba, a cherry red imperial topaz, or a pingeon blood untreated ruby, for example. Search for Heitor Dimas Barbosa images on google and you will see the Paraibas im talking about. But the Paraiba market i see is very closed and hard to get rough at wholesale.

 

[PrecisionGem]

And they are durable too it will stay lifelong or for generations until they are not stolen or lost. My question is actually Colored stones have all qualities of gold and diamonds despite of that we don't get the resale value easily like diamonds and Bullion.

I was in the office of one of the jewelers I sell to, and a customer of his came in with a diamond she purchased from him the previous year. She want to trade it in, to upgrade to a bigger stone. He offered her $700 for the stone. She gasped and said that just last year she paid him $2500 for it. He told her that was the going rate, and she accepted the $700 for the diamond. --- So much for a good investment!

 

[minousbijoux]

As commonly seen on LT and DB.

 

[mastercutgems]

When you buy anything full retail; you will be hard pressed to sell at a break-even price; much less a profit... When you try to sell or trade with a full retail seller they will not offer you 1/3 of what you paid them.. That should let you know; who not to buy from again !!! As that will mean you paid them too much for whatever it is you bought from them...

Research your product, search around and compare, and then make a decision on whether it will give you the return you seek in either joy or monetary means.

I do my due diligence in anything I buy to make sure I get the best price for the best quality product; whether it be a gem, facet rough, gold, silver, land, stock, car, tractor, even organic heirloom vegetable seeds. It is your money; spend it as wisely as you can in all things; not just gems and jewelry...

Most Respectfully;

Dana Reynolds
ASG Certified
Supreme Master Gem Cutter
#96CGE42

 

[Ceaho]

Its funny when someone have to seel something for 1/4 of he paid for the same person who sold to him. That seller got good laugh but, as master Dana said, he wont sell again for the person. The link is lost and the chain is broken. Also in investments you can lose either, not only win; being in gemstones, stocks, real state, PMs, foreing currencies or any other investment

 

[andi69]

When you buy anything full retail; you will be hard pressed to sell at a break-even price; much less a profit... When you try to sell or trade with a full retail seller they will not offer you 1/3 of what you paid them.. That should let you know; who not to buy from again !!! As that will mean you paid them too much for whatever it is you bought from them...

Research your product, search around and compare, and then make a decision on whether it will give you the return you seek in either joy or monetary means.

I do my due diligence in anything I buy to make sure I get the best price for the best quality product; whether it be a gem, facet rough, gold, silver, land, stock, car, tractor, even organic heirloom vegetable seeds. It is your money; spend it as wisely as you can in all things; not just gems and jewelry...

Most Respectfully

Dana Reynolds
ASG Certified
Supreme Master Gem Cutter
#96CGE42

 

[andi69]

Hello Dana,Do you still cut gemstones .If so ,what are your price per stone (emeralds rubies tourmalines etc).Thank You.

When you buy anything full retail; you will be hard pressed to sell at a break-even price; much less a profit... When you try to sell or trade with a full retail seller they will not offer you 1/3 of what you paid them.. That should let you know; who not to buy from again !!! As that will mean you paid them too much for whatever it is you bought from them...

Research your product, search around and compare, and then make a decision on whether it will give you the return you seek in either joy or monetary means.

I do my due diligence in anything I buy to make sure I get the best price for the best quality product; whether it be a gem, facet rough, gold, silver, land, stock, car, tractor, even organic heirloom vegetable seeds. It is your money; spend it as wisely as you can in all things; not just gems and jewelry...

Most Respectfully;

Dana Reynolds
ASG Certified
Supreme Master Gem Cutter
#96CGE42