Unveiling the mystery behind the widespread acclaim of this little-known product.
Investors are turning to tangible assets like gemstones as a means of diversification, according to Chris Pampe, a renowned expert in the field. The German Gemstone Bureau's managing director, Chris Pampel, has reported an increase in clients selling foreign-owned real estate and shifting their investments into assets such as gold and gemstones.
Pampe attributes this shift to the current uncertainties and challenges in the global economy. Investors are seeking alternatives to traditional investments like stocks, looking for assets that offer stability and potential for growth.
A well-structured portfolio, according to Pampe, typically includes securities (stocks) and precious metals (like gold). However, he claims that gemstones can offer a unique opportunity for high returns, particularly on rare stones. In fact, he has witnessed a tenfold increase with some gemstones.
One of the key advantages of investing in gemstones is diversification. Some rare gemstones, such as benitoite, black opal, red beryl, and ammolite, are becoming increasingly scarce, potentially boosting their value over time due to supply constraints.
Moreover, gemstones offer a cultural and emotional appeal that goes beyond their financial value. They often have symbolic significance and intrinsic beauty, making them desirable beyond pure financial investment, unlike stocks or gold.
However, it's important to note that gemstone investments tend to be less liquid and more challenging to value consistently compared to stocks and gold. Their values depend heavily on the "4 Cs"—color, clarity, cut, and carat weight—plus rarity and market trends, making pricing less standardized.
Despite these challenges, Pampe emphasizes that no single tangible asset is a guaranteed solution. Diversification is key in building a successful portfolio. Once a portfolio is well-positioned, other tangible asset investments, such as mobile tangible assets, become interesting.
For those interested in gemstone investments, there are options available for all budgets. It's possible to buy whole gemstones for several thousand euros, but a savings plan in a gemstone portfolio starting at 30 euros per month is also available.
In conclusion, while gemstone investments may offer unique benefits such as rarity and diversification, they typically carry higher risks, lower liquidity, and more pricing complexities than stocks or gold. Returns can range widely depending on the stone quality and market conditions and are generally less predictable than traditional financial assets.
As investors seek to diversify their portfolios to avoid concentrated risks, gemstones are being considered as an investment option. With their potential for high returns, cultural and emotional appeal, and role as a mobile tangible asset, gemstones could be an interesting addition to a well-structured investment portfolio.
Personal-finance enthusiasts might consider investing in gemstones as an alternative to stocks or gold, given their potential for high returns, particularly on rare stones. However, investing in gemstones can be less liquid and more challenging to value consistently compared to traditional investments, as their values depend on factors such as the "4 Cs"—color, clarity, cut, and carat weight—plus rarity and market trends, making pricing less standardized.
