With the growing interest in alternative investments, gemstones have become an increasingly popular option for investors in 2022. Gemstones like diamonds, rubies, emeralds and sapphires have intrinsic value and often appreciate over time. However, with many types of gemstones available, it can be difficult to determine which are the best for investment.
Diamonds remain top choice for stability and value
Diamonds continue to be one of the most popular gemstones for investment in 2022. As the hardest natural substance on earth, diamonds retain their condition and value exceptionally well over time. Large, high-quality diamonds from reputable brands have shown steady price appreciation historically. For investors seeking an alternative asset with low volatility and strong protective qualities, diamond investment funds or high-value loose stones present a compelling option.
Colored gems offer potential for higher returns
While diamonds provide stability, colored gemstones like rubies, emeralds and sapphires have the potential for higher investment returns. In particular, fine quality rubies and sapphires from reputable sources have seen major price increases recently. However, colored gems tend to carry higher risk, as pricing is more subjective and there is potential for treatment and fakes. Working with a reputable gemologist to source and evaluate colored gems is highly recommended.
Combine gemstones with other assets for diversification
Gemstones can be an excellent way to diversify an investment portfolio focused on stocks, bonds and real estate. Because gems are disconnected from broader financial markets, they can provide a hedge against inflation or market instability. However, investing substantially in gemstones also concentrates risk. Most financial advisors suggest allocating no more than 5-10% of a portfolio to alternative assets like gemstones.
Long-term outlook remains positive for gems
While short-term fluctuations are inevitable, the long-term investment outlook for diamonds, rubies, emeralds and other precious gemstones remains strong. As sources become more scarce and global wealth rises over time, demand is likely to continue increasing. Additionally, the portability, durability and inherent beauty of gems ensures they will always have value to investors and collectors alike.
In 2022, gemstones remain a smart investment choice when purchased carefully from reputable sources. Diamonds provide stability while colored gems offer higher potential returns. When included as part of a diversified portfolio, gemstones can enhance overall performance.