GemWorld Tid bits . . .
COLLECTING and INVESTING
For Fun and Profit
Not only is it fun to collect gemstones, but you can profit from them also.
Most gems continue to go up in value. Timing, buying right, and selling
right are key issues in making profits. Gemstones in particular provide
a storehouse of value. They take up very little space
and are very portable.
These are some of the reasons why buying gemstones makes sense.
Cycles play an important role in the gemstone market.
rise and fall of stock and bond prices go opposite the rise and fall of
hard assets such as gemstones, gold, silver, art, antiques
When the hard asset market is overpriced, huge amounts of money flow into
stocks and bonds. When stocks and bonds are overpriced, huge volumes of
monies move into hard assets. The stock and bond market has made an upward
move in price for nearly two decades and is now overpriced and poised for a
major downturn correction. It is now time for the money to move and flow
into gemstones and other hard assets.
This cycle of events takes place about every 18 years and has been true for
the last 200 years until this last cycle, which is overextended. Gemstones,
gold, silver, and other hard asset prices started their upward trend in 1968
and made their peak in 1980. The stock market and bonds started their upward
trend in 1981. The Dow Jones Industrial averages went from 780 to nearly
11,000 within the last 20 years with only one correction in 1987. A major
correction and a change in direction is certainly overdue. It is best to
buy gemstones and other hard assets now before they make their upward move.
True investors will buy before they see a move in markets. Speculators buy
after they see upward market momentum. John Does or ordinary Joes and Janes
usually end up with the Old Maid. They get in well after others made money
and want a part of the action, but it's usually too late.
Interest rates have an influence on the gemstone market.
If one studies
history, especially economic history, one will find that
rates drop, stocks and bonds rise in value. Interest rates have fallen
since 1981, which is why stocks and bonds have increased in value. When
the rates can no longer be lowered, these rates will rise. At times it
seems to be so subtle because of temporary pullbacks. When long-term
interest rates rise again, stocks and bonds will falter in value. These
huge sums of money will have to find another home such as gemstones and
other hard assets.
Another reason is "inflation". When an economy needs to be stimulated
because it's running sluggish or the government needs to pay off more
of its debts, it cranks the printing presses to make more money. At one
time in the near to distant past, the American dollar was tied to the value
and amount of precious metals (such as, gold and silver) the government had
on hand as assets. Each dollar was backed by an asset. You could literally
take a piece of American paper money and exchange it for its value in gold
or silver. Today, there is no limit as to how many dollars are in circulation.
The government can print any amount of money at its whim. When there is
twice the amount of money for the same goods to be purchased, the goods now
will cost twice as much because there is double the amount of money to buy
them. The way to beat inflation is to buy the goods before the masses
discover its trickled down effect. Then sell the goods just before
inflation has peaked. Do you remember silver starting out at about $1 per
ounce in early 1970's and then rising to $50 an ounce at the end of 1979?
Or, gold going from $32 an ounce to $800 per ounce. After 1980, the feds
tightened the money supply and silver dropped down to about $3.50 an ounce
a few years later and gold dropped below $300 an ounce. It's going to
Another reason is supply and demand.
The world’s supply of natural
gemstones is limited as to what already exists. No more is being made.
If it is being made, it takes eons of time to produce a natural gemstone.
Many of the large producing mines of the world are already mined out, or
nearly so. Although there are new discoveries, even these are limited
supplies and will eventually be depleted. As the worlds population
increases, so will the demand. Those who have the stones are finding
ways to promote gemstones to the masses. At one time it was the elite
of the Western World and the European countries that had an interest in
these items. Now, the masses of the world will be wanting to own natural
Another reason why to invest in gemstones is that the costs of mining
keeps going up. The gemstone material is no longer just lying on the
surface to be picked up. The miners have to go down deeper and deeper
to find the good material. The deeper one goes, the more expensive it
is to mine. These rising costs are later figured into the value of
gemstones. When it comes to opals, the deeper one mines, the poorer the
quality. The reason for this is that there is more water in the opal and
its surrounding material. The more water there is in opal, the more chance
it will crack or craze. As we move into the future, I can only see natural
gemstones going up in value.
The gemstones that are more likely to go up in value are your scarce and
rare gemstones such as Benitoite, Tanzanite, Alexandrite, Tsavorite,
Dematoid garnet, Rubelite tourmaline (true red color and hot pinks),
Verdelite tourmaline in emerald green color, Indicolite tourmaline in
sapphire blue color, Chrome tourmaline, clean Kunzite in larger sizes,
Andalusite, Axinite, Fancy Diamonds (of color such as red, green, and
canary), Color-change garnets and sappires, Precious opal, Fire agate,
True green jade, large Peridots (over 15 carats), Euclase, Cassiterite,
Kornerupine, Chrome Diopside, Brazillianite, Lazulite, Spessartite garnet,
Zircon (not cubic zircona--CZ), Star sapphires and rubies, Chrysoberyl
cat's eye, any expensive gemstones that have cat's eyes or asterism,
Bixbite called "Red Emerald" is related to the emerald but is strawberry
red in color", Red and pink Topaz, unusual and rare pearls, high grade
pearls, deeper blue Aquamarine, and high quality emeralds, rubies,
sapphires, chrysoberyls, and Spinels (especially in larger sizes).
For investing purposes, you can purchase the gemstones loose or in settings.
If you wear them, they may have to be recut if scratched, chipped, or
damaged. If recut, some value will be lost because the stone is now
smaller and or lighter. If not recut, some value will be discounted
because of the acquired imperfections. Occasional use is okay if one
is careful. There are many famous stones that were worn admirably in
past history that have pedigrees and are quite valuable today because
much care was taken to preserve the integrity of the stones and the settings.
Keep in mind that timing, buying right, and selling right are key issues in
The amount to spend is relative to how much money you are investing in
gemstones and if you paid a high price, extremely overpriced or under
priced amount, or got a bargain. Bargains can be had at depressed sales,
liquidations, estate sales, going out of business sales, garage sales,
yard sales, and even at swap meets. Some people do not know what they
have or the value of the piece. Some do not care, but need immediate cash
to bail them out of a problem. Quality reputable jewelers who are there to
actually help you and not gouge you are good places to buy, especially for
their creative designs, both in the use of certain gemstones and the
creativity and quality of the settings. The prices are also dependant on
the type, color, quality, and size of the stone. It is best to shop around,
learn about the stone, compare, and then make a quality decision.
Also keep in mind that, even though a price is shown for a piece, some
prices are negotiable. The price shown is what the jeweler or vendor
would like to get and is sometimes a "top-dollar" price or a high markup.
The best thing to do sometimes is to "make an offer." They will either
refuse, accept, or make a counter offer. If you are lucky and can buy
from a miner, or wholesaler, you eliminate the middle man or woman, and
can get a better price especially if you buy in lots (kilos) and put out
a sizeable outlay of cash. I, myself, prefer to buy stones individually.
When purchased in volume, a lot of the stones will be junk. To determine
quality of a stone, bring along a 10X loupe and take a look at the inside
of the stone in bright light. Putting the stone on the edge of a lamp
shape will reveal even more of what is inside. When the stone is half in
the light and half out of the light, this is called "candeling," which
allows one to see the imperfections on the inside of the stone that are
called "inclusions." Also examine the facets or the surface of the stone
to check the quality of the cutting and polish. A stone that is well
polished will not have any dull areas, lines, or ridges on the surface. If a jeweler or
vendor sees that you have a loupe, there is less chance of him or her
taking advantage of you.
The most important thing is to collect and or invest in a way that
interests you. Some individuals want one of every stone that exits.
Another individual starts out collecting just red stones or green stones.
Some will favor one stone such as ruby and will continue to purchase
quality high-grade rubies over a period of time. Others collect every
type of beryl that exists such as Emeralds, Aquamarines, Bixbites known as
"Red Emeralds", Golden Beryl, Morganites, etc. Some collect or invest in
one or two stones a year. Others collect and invest as the opportunity
The choice is yours. The important thing is to have fun.
We appreciate any and all comments
Email us at: Jack@gemworld.com
Our temporary post (mailing) location is:
Jack Slevkoff's Prized Possessions
c/o 4460 West Shaw Avenue, Suite 140
California [Zip Exempt]
For those who come in the back door
such as through a search engine
our web-site (URL) address is
INDEX and LINKS
to our other pages
Wedding Aniverseries |
Faceted Stones |
Fire Opals |
Rubies and Sapphires |
Black Crystal |
Contra Luz |
Crystal with Matrix |
Gray Crystal |
Cabbed Stones |
Carved Stones |
Collector Stones |
Phenominal Stones |
Beryl Rough |
Collector Stones |
Fire Opals |
Custom and Foreign
Polished Rock |
Bead Mill |
Diamond Testers |
Info & Index |
Flat Laps |
Flexible Shaft |
Faceting Machines |
The Facetron |
Facetron Parts |
The Titan |
The Genie |
The Pixie |
Slab Saws |
Sphere Machines |
Sphere Preformer |
Spool Polisher |
Trim Saws |
Single Barrel Tumblers |
Ultraviolet Lights |
Double Barrel Rotary |
Single Barrel Rotary |
Triple Barrel Rotary |
Dia. Discs(Crystalite) |
Dia. Discs(Lapcraft) |
Dia. Discs(China) |
Dia. Drills |
Dia. Saw Blades(China) |
Dia. Grind Wheels |
Dia. Sand/Polish Wheels |
Displays and Gem Tray Cases |
Dyna Disks |
Faceting Accessories |
Faceting Kits |
Gem Powders |
Grit & Polishing Materials |
Lubricants Coolants |
Polishing Laps |
Tumbling Media |
Tumbling Rough |
Rockhound Kit |
Gold Panning Kit
Gem Cutting & Polishing |
Prepare Cast Iron Lap |
Prepare Ceramic Lap |
Cut Opals |
Treat Opal |
Don't Go Here!
Been deceived |
Tucson Show Guide |
Tucson Show Guide 2 |
Tucson 2001 |
Blythe 1998 |
Congress Street Expo 1998 |
Quartzite 1998 |
Business Cards |
Comments 1998 |
Comments 1997 |
Comments 1996 |
Collecting and Investing |
Antique Gas Signs |
California Lottery Collection |
Giant Wrenches |
Greeting Bags |
Loquat Trees |
Resort Timeshare-Oregon Coast |
Resort Timeshare-Tahoe |
"Six Queens" Gold Coin |
Skull-Water Buffalo |
Silver Coins |
Common Law Copy Right 1996 1997 1998 1999 2000 2001 2002 Jack Slevkoff's Prized Possessions. All Rights Reserved.
We welcome your comments and suggestions! Email them to Jack@gemworld.com.