Gemstones show a unique combination of scarcity, beauty, and durability, making them an attractive alternative investment. Unlike traditional assets, gemstones have been relatively resilient to economic downturns, and their intrinsic value can withstand market fluctuations. Investors seeking assets that can act as a hedge against inflation and economic uncertainties may want to turn to these hard assets. With a limited supply and growing global demand, natural gemstones present an intriguing avenue of diversifying one’s portfolio. Historically, these precious stones have demonstrated a capacity to preserve and increase value over time.

Traditional asset classes, such as treasury and corporate bonds, preferred stocks, gold, and real estate, yielded an average annual return ranging from 2,3% to 8,7% over a 36-year investment horizon data (Source). 

In contrast, gemstones have generally exhibited consistent and robust performance of the same period. Since 1995 the market prices for naturally coloured, untreated gemstones have at least tripled. Depending on the gemstone type, the market has witnessed annual average price increases of 5 – 8% (Source). Market experts note that particularly exceptional and rare rubies, sapphires, and emeralds, characterized by their quality criteria and origin, have experienced drastic value development over the years. For instance, rubies have shown an 8% increase, sapphires 6%, and emeralds 5% (Source). 

The current and future value of a gemstone hinges significantly on its rarity and quality. It’s widely acknowledged that the ‘Big 3’ – rubies, sapphires, and emeralds – are particularly well-suited for investment, whether in their loose form or incorporated into jewelry pieces (Source). Additionally, certain other gemstones, such as paraiba tourmaline, alexandrite, and demantoid garnets, exhibit enduring high market prices owing to their rarity and widespread appeal (Source).