Gemstones Perceived as an Asset Class

From Economist.com
THAT nervy investors pile into gold is well known: the price of the yellow metal breached $1,900 an ounce again this week. But growing numbers are also venturing farther afield, into gemstones such as rubies, sapphires and emeralds. Although coloured stones are a hotch-potch of an asset class, anecdotal evidence points to surging values.

Dealers say prices for high-quality rubies are up by 50% this year and have doubled in the past two years. Top-notch sapphires that in 2009 would have fetched $65,000-80,000 per carat (a unit of mass equal to 200 milligrams) now change hands for $150,000 or more, says Joe Menzie, a former head of the International Coloured Gemstone Association. In a recent auction to wholesalers, African emeralds sold for 63% more per carat than higher-quality stones fetched last December. Even stones of average quality are up by 20-25% this year, says one dealer. The boom has also boosted semi-precious stones, such as rubellite and red spinel, worn by those who can’t quite stretch to a ruby. “Some semi-precious stones are now priced as if they were precious,” says Guy Clutterbuck of CGM, which sells to retailers.
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There are several forces driving the price rises. The strongest is surging demand from faster-growing economies, particularly China and India. Both countries have a long-standing passion for coloured stones, some of which are seen as bringing good luck (yellow sapphires in Hinduism, for instance). Their new rich flaunt them as status symbols at dinner parties in Shanghai and Mumbai. One American dealer reports difficulty getting hold of tanzanite, a blue semi-precious stone. He can sell it for $300 per carat and will thus pay up to $280, but cannot compete with Chinese wholesalers willing to pay $350 so they can sell to domestic clients for $400. A contributing factor is the rise of the yuan against the dollar, the denominating currency for gemstone prices.

A second force is economic insecurity. Like gold, gemstones are seen by some as a tangible store of value in turbulent times. Dealers are increasingly being asked to put together collections for wealthy Americans who want to diversify away from paper investments. “Wall Street types are reading the auction results and picking up the phone,” says Edward Boehm of RareSource, which buys stones from mines.

A third factor is supply shortages. Unlike the artificial constraints imposed on diamond supply by big sellers, gemstone shortages are real. Good-quality coloured stones are hard to find in the ground at the best of times. The outfits digging for them tend to be tiny compared with the diamond giants: one of the biggest emerald miners, Gemfields, has a market value of just $66m (though it is growing smartly). “It is much more a business of mavericks” than diamonds is, says Mr Clutterbuck. Local politics have contributed to shortages. In 2008 America banned imports of gemstones from junta-ruled Myanmar, a major source of rubies. Madagascar has sapphire deposits but its politics are dysfunctional and its infrastructure poor.

Read more: http://www.economist.com/node/21528623

An intelligent Investor diversifies his portfolio by put money in stocks, bonds, gold, real estate, or cash. He shuffles in and out of these assets from time to time. Some may venture into new asset classes such as wines, diamonds, arts, antiques, a new start up business, or other high risk investments. It's no wonder one may venture into invest in gem quality colored gemstones. A savvy investor may invest in natural & rare gemstones in large carat sizes. As these gemstones have well acceptance in the international auction houses. Same as stocks, bonds, real estate, or gold, their prices are reflected from supply and demand mechanisms.

Investing in colored gemstones may be perceived as a high risk investment for some old school of thought, as colored gemstones is not wildly traded as stocks in stock market. Gem quality natural colored gemstones increase in price as time pass however a savvy investor must do some works before starting to buy gemstones.

For example, he must do some research for which gemstone to invest, find some reliable and trustworthy dealers, and most important is request a third party or an international accredited lab certification when buying a gemstone.

Gemstones investment may be a new idea for a western investor. People in India, China, and Asian perceive gemstones as personal adornment and investment. In some countries that face inflation risk, holding good quality gemstones may put the owner in better position than holding paper money. In disturbing or falling apart countries, quality gemstones can buy a way to escape to a third country.

For a savvy & well preserved wealth investor, investing in gem quality colored gemstones not only increases his purchasing power in the future, have inherited jewelry for his family but also have an admiration from his wife for an extraordinary piece of jewelry.

Fire Opal Antique Jewelry

One might be wonder to see an antique fire opal jewelry as we often see other precious gems such as ruby or sapphire used in antique jewelry. Interestingly, fire opal has been admired and used in jewelry embellishment since ancient times.

This fire opal jewelry is offered by A La Vieille Russie, a antique dealer in New York.
Fire opal is named for its warm and fiery color. Usually, they are orange to red in color. A reddish fire opal is sometimes called cherry opal.

Fire opal is a gem stone that gives its wearer courage, stamina, will-power and energy. Along with tourmaline, fire opal is the birthstone for October.

Amethyst and Diamond Brooch

When looks at this amethyst & diamond brooch, one might be dazzled by the auction ending price of $40,350.
This semi-precious stone amethyst, a quartz gemstone, abundance and affordable, can get high price when set into jewelry? I guess it's the design that took the price so high. The style of big, bold amethyst surrounded by a symmetrical array of diamonds is a mixture of late Renaissance style and retro style jewelry.

Astronomers Discover Planet Made of Diamond

I have known one day there will be a discovery like this.

Astronomers have spotted an exotic planet that seems to be made of diamond racing around a tiny star in our galactic backyard.

The new planet is far denser than any other known so far and consists largely of carbon. Because it is so dense, scientists calculate the carbon must be crystalline, so a large part of this strange world will effectively be diamond.

Read more in: http://www.foxnews.com/scitech/2011/08/29/astronomers-discover-planet-made-diamond/?test=faces

Pink Spinels and Diamond Pendant Ear Clips

Pink spinel resembles pink sapphire. In the past pink spinel costs a lot less but not today more gem lovers and collectors covet to spinels. Since eccentric & beautiful Tanzania spinels appear in the gem market, spinel price is skyrocket and big carat size spinels are in deep pocket gem companies.

This step-cut pair of pink spinel is considered rare to find in this size. The auction is for spinel and diamond pendant ear clips each decorated with a step-cut pink spinel weighing 20.00 and 20.07 carats bordered by brilliant-cut diamonds, suspending a detachable pear-shared diamond drop weighing respectively 7.27 and 8.78 carats surmounted by a pair of similar stones, mounted in white gold and platinum size 52. The set was sold for 1,594,500chf in a Sothebys auction.

Demantoid Garnet Diamond Ring

Have you ever wonder why brownish-green stone, olive-green, or a yellowish-green stone just like this stone in this diamond jewelry get high price in the reputable auctions? Its color is less superior to emerald, tsavorite garnet, or green tourmaline. Mostly you will find inclusions in a stone. Only a few stones achieve more than two carats. However, this sometimes almost ugly stone is one of the most expensive gems in the world, and it is not just ordinary member of the garnet family; it's demantoid.

After demantoid garnet was discovered in 1868, demantoid was a darling of jewelers as we have seen jewelry in the Edwardian era and the Victorian era using these small stones. Tiffany had used demantoid extensively in the late nineteenth century.

Demantoid is more dispersive than diamond but the stone is extremely rare in big size.

Guideline for Colored Gemstones Trend 2011

What is the trend color of gemstones in 2011? I just found the article from worldone-journal.com

http://www.worldone-journal.com/cgi-bin/adframe/gemstones/article.html?ADFRAME_MCMS_ID=117&page=1&id=1310012939125241306722389

The preferred gemstone colour varies according to the latest hues of this season’s fashions. For World One, various experts point out where this year's gemstone voyage will lead.

by Axel Henselder

Everyone has their own favourite colour. But these preferences vary according to the mood of the day, the general atmosphere and the time of year. Fashion designers have long been aware of this and develop new colour variations for each season. According to the Chinese calendar, we are now in the year of the rabbit, which represents a pure zest for life. So it is fi tting that fashion as well as jewellery will incorporate more colour than ever before. “My favourite colour is colourful!” as the German Bauhaus architect Walter Gropius once put it. The year 2011 would have been a real pleasure for him. Demand for coloured gemstones looks set to increase signifi cantly this year – after a robust trend in 2010.

Renowned colour guru Leatrice Eiseman has explained to the American Gem Trade Association (AGTA) where this year’s gemstone journey will lead and which natural nuances will be particularly sought-after. Eiseman is executive director of the Pantone Color Institute, which determines the trend colours for the world of fashion each year.

Nicole Ripp from gemstone cutters Groh + Ripp, based in Idar-Oberstein, has been investigating colour trends and their signifi cance for the jewellery industry for many years and weighs in on what she foresees. “The same applies to jewellery as a sought-after accessory as it does to fashion. Trend colours infl uence the choice of coloured gemstones as clothing and jewellery should ideally be of the same tone or a complementary shade,” says the gemstone expert.

TINGLING PINK AS A TREND COLOUR FOR 2011

According to the Pantone Color Institute, honeysuckle is the colour for 2011. It has an intense tone as well as being dynamic and uplifting – just what people need after the crisis. This is a reddish-pink, closer to red and warmer than the baby pink of the past few years. It is a colour, which seems to be infl uenced by Latin American culture. The colour suits people of all ages, from teenagers to 80-year-olds. It even suits men as it is not really girly. Honeysucklelike pinks include tourmaline, red spinel, rhodolite garnet and fancy pink sapphire. Those who prefer a pastel shade can opt for kunzite, morganite, rose quartz and natural pink diamonds.

Markus Wild from Paul Wild in Idar- Oberstein is also focusing on vibrant red shades as the trend colours for 2011: he has secured for himself what is probably a historically unique deposit of spinel from Tanzania, defi ned by an elegant and lively redtone. He has also noted a growing demand for padparadscha, Burma rubies and sapphires, which cover the full range from pink to dark red. “Over the last two years, berry tones have become an essential part of jewelexpert, she adds: “Berry colours are nuances, which can be combined particularly well. Every woman can fi nd a colour to suit her from a wide range of tones".

TURQUOISE AND OTHER BLUE TONES

Fashionistas will certainly remember that turquoise was the Pantone color of 2010. But it is certainly not a colour on the way out, as Eiseman explains. Turquoise and other blue tones continue to play a key role, especially when skilfully combined with purples. After all, purple is a mixture of red and blue. This results in a fresh and modern look. Amethyst, purple sapphire, alexandrite and turquoise all fi t in with this trend. Moonstone, labradorite and blue tourmaline have also been trend stones for the last two years – and they are still hot.

Paul Wild offers rare stones like Kashmir sapphires to tie in with this new blue trend. Constantin Wild, also from Idar-Oberstein, sees moonstone from Tanzania as a particularly fashionable stone.

“The stones shimmer with transparency in an unbelievable luminous blue tone. A necklace in this colour complements any skin tone and personality.” “Blue is a classic,” confi rms Ripp. Blue is far and away the most popular colour among both women and men. It is associated with many positive characteristics: sympathy, harmony, friendliness and friendship. Blue is like the sky and stands for expanse and infi nity. As a colour of trust and reliability, it has a peaceful and relaxing effect. “Delicate blue aquamarine, intense blue tanzanite and exquisite sapphire are a key theme,” says Ripp. A great value alternative for blue stone fans is blue topaz, which comes in all shades.
According to Eiseman, green is also an essential trend colour, in addition to honeysuckle. However, this does not mean normal green but rather yellow or olive green – the “dirtier” greens. The stones, which refl ect this trend are yellow-green peridot, apple green chrysoprase, some shades of zultanite, green tourmaline, beryl, chrome diopside, chrysoberyl, jade, prasiolite, demantoid garnet, prehnite and aventurine.

Let's Goes Green

“Delicate green, as offered by heliodor for example, is also a theme in the current trend for green,” explains coloured gemstone expert Ripp. “Mint-coloured Paraiba, Mozambique tourmaline and light green tourmaline also tone in well with the trend.” Paul Wild’s collection comprises Paraiba tourmaline from his own mine in Brazil to satisfy this demand for green.

From Cafe Au Lait to Chocolate

Brown tones will remain an important area in 2011, as Eiseman is convinced. All tones will be represented in accessories, from light to dark browns. Rutilated quartz with its yellowish- brown or gold-coloured needles, smoky quartz, brown agate, tiger’s eye, moss agate and honey-brown chrysoberyl all present sophisticated brown tones. Natural coloured diamonds in champagne and cognac shades likewise reflect this trend.

2011 Impressive Gemstones AGTA Cutting Edge Awards

1st Place -Pairs & Suites
Clay Zava
Zava Mastercuts
Suite of pastel Cuprian Tourmalines (127.40 ctw.).
This suite is really one of a kind in terms of cut & colors of tourmaline. It takes an effort to find fine enough Mozambique Cuprian tourmalines roughs with good colors & fine clarity.


Honorable Mention
Pairs & Suites
Darrell Jang
Aspen-shaped leaves cut from a 15.09 ct. Peridot and a 11.15 ct. Heliodor.

Normal 0 false false false EN-US X-NONE TH MicrosoftInternetExplorer4 The beryl & peridot with this cutting is very inspiring. I’m tempted to use his service for cutting my gemstones. The cutting design is very impressive. It makes ordinary gemstones look extraordinary & yet beautiful.

Impressive Spinels at The Smithsonian

Spinels are commonly found in occurrence with corundum (ruby and sapphire) and have historically been confused with each other due to their many similarities. The major sources of spinel gemstones are Burma, Sri Lanka, and Thailand. Other significant occurrences are Pakistan, Afghanistan, Tajikistan, Tanzania, Viet Nam, and Russia

Tiffany & Co. Foundation donated the beautiful Sri Lanka & Tajikistan spinels to The Smithsonian Institution mineral and gem collection. The gems are exceptional in colors & quality which I believe they command high price in the gem market.

Little we know about spinels from Tajikistan due to Tajikistan spinel was found in a remoted area located in conflicted geographical situation of the Then-Soviet Union. These spinels are impressive in term of size, colors & their rarity.

The 14.02-carat violet-blue Sri Lanka spinel
The 16.79-carat orangey-pink Tajikistan spinel
Photography by Chip Clark. Gift of Tiffany & Co. Foundation, 2009.

Whitney Alexandrite

Photography by Chip Clark. Gift of Coralyn Wright Whitney, 2009.

Alexandrite is a gem variety of the mineral chrysoberyl, and is one of the most prized and exotic gemstones. The sensational feature about this stone is its dramatic color change from green or bluish-green in daylight to purplish-red under incandescent light. The original locality for alexandrite is Russia, however, now most alexandrite comes from Brazil, Sri Lanka, India, Tanzania, and Madagascar. Alexandrite in sizes over 5 carats are extremely rare.

The Whitney Alexandrite is one of the finest known alexandrites from the Hematita Mine in Minas Gerais, Brazil. This spectacular gem weighs 17.08 carats, and appears a raspberry color under incandescent light and a teal color in daylight. The Whitney Alexandrite is a gift from Coralyn Wright Whitney to the Smithsonian's fine gem collection in 2009. It is on view in the National Gem Gallery.

Visit The Smithsonian Institution mineral and gem collection to see the real gem.