Gemstones as an Investment: Diamonds and Colored Gemstones

High-quality diamonds and colored gemstones have already been a popular and discreet form of long-term investment for centuries. On the one hand, this is because gemstones have historically survived all past financial and economic crises unscathed, and on the other hand, due to the naturally limited resources of this precious material. For example, an untreated ruby with a certificate from an international renowned gemological laboratory and a weight of 5 carats—which equals exactly one gram—can have the same market value as 3 kilograms of fine gold.
For this reason as well, exquisite gemstones are rightly awarded the title of an "ideal emergency currency" due to their special mobility (high value in the smallest space) and global acceptance. This circumstance, along with the fact that gemstones are easy to store, currently subject to no wealth tax, and hardly touched by inflation, deflation, or currency devaluation, makes them particularly attractive as a valuable investment—ideally even across generations!
Certified natural gemstones can and should only represent a part of an individual investment portfolio. For those who have already invested in real estate, precious metals, or other asset classes, selected gemstones are a recommended diversification with the highest value density, without any connection to classic financial products. Physical gemstones are not traded on stock exchanges, which is why their price level is exceptionally stable, even internationally, and largely independent of the speculations of the modern financial system.
Even gold, the "worldwide crisis currency no. 1," is subject in its value dynamics to numerous factors (valuation in US dollars, derivative transactions/“paper gold,” current interest rates of major central banks, buying and selling of state gold reserves, etc.) that repeatedly cause its price to fluctuate significantly, quite apart from the currently quite high price level of this precious metal.

As traditionally regarded as top-tier investments in the colored gemstone market, rubies, sapphires, and emeralds certainly rank among the foremost choices. The availability of untreated gemstones of top quality is significantly lower in volume than that of diamonds, which is unlikely to be a disadvantage when it comes to future price developments. Carefully selected individual stones of imperial topaz, tanzanite, mandarin garnet, tsavorite, spinel, and Paraiba tourmaline are also highly recommended, to name just a few examples. In addition, there are numerous other colored gemstones that are comparatively rare on the market and whose acquisition should be reserved for knowledgeable collectors and trade experts.
Anyone seeking only quick profits would be ill-advised to choose this form of investment. The decisive criteria here are undoubtedly long-term appreciation in value and the personal pleasure (emotional return) derived from owning gemstones that are uniquely attractive in their own right.
When purchasing gemstones, you should always ensure that the individual stones fall within a price range considered marketable among affluent middle-class buyers. Investing a six-figure sum in a single gemstone makes relatively little sense if, in the best-case scenario, it can only be resold through one of the major international auction houses, incurring substantial fees and requiring considerable time and effort. A carefully selected and diversified portfolio is highly advisable and can certainly reflect personal preferences. Alongside carat weight and size, overall quality should always take priority, particularly cutting precision, high clarity, and intense color.
For clients seeking particularly exquisite quality, we maintain a curated selection of premium gemstones, each priced at €10,000 or more. We would be delighted to present these exceptional treasures to you in person by individual appointment. We recommend them as sound, long-term capital investments.
Unlike colored gemstones, diamonds are subject to worldwide pricing and valuation standards. The international diamond trade is dominated by a small number of major corporations. This offers the advantage of a certain degree of continuity, but also means that genuine bargains are rarely available. In our assessment, the only diamonds of particular interest as reliable tangible assets are top-color, flawless white diamonds and GIA-certified fancy-color diamonds in the premium color grades “Natural Fancy Intense” and “Natural Fancy Vivid,” provided they also possess high clarity and excellent cut quality.
As a prospective gemstone buyer, you should invest your money only with suppliers who offer reputable, expert advice and provide an independent report issued by a recognized gemological institute. Ideally, this report should include not only a detailed description and grading of the gemstone but also an estimate of its current market value (i.e., its replacement value in the high-end specialist trade). This valuation is relevant for insurance and notarial purposes, among others, and provides an excellent basis for assessing the asking price quoted by the gemstone dealer. In your interest, this selling price should always be below the stated market value.
If you are seriously interested in gemstones as an investment, please feel free to contact us by email or by telephone at +43 (0)664 4630474.