How to be an intelligent buyer while purchasing gemstones?
We generally think that buying expensive jewellery and gems is a good investment. However, that’s not always true because purchasing gemstones of lesser value can also be a good investment.
Investors better informed do their research select low or moderately priced gemstones. Again, investors who invest in high-end or atypical stones get fantastic returns.
Read on to find out how to make money while investing in gemstones.
Firstly, you need to know what the meaning of investment-grade is. Some semi-precious stones or precious gemstones may have all four Cs and high prices, but when you try to resell these stones, you may fail to fetch the best price. These kinds of gems are often called investment grades.
Here the first rule is to make the right choice while buying as you already know investment in gems is a good way of making money. But while you buy gemstone online, you should also keep the profit you get on that day in mind. So, finding the appropriate sources is significant, and you have to find wholesale sources to buy low so that you get the best rates from Tier 1 dealers who are primary dealers. They mine the gemstones and cut them.
Next comes the second dealers are known to resell them after buying from primary dealers. Instead of purchasing single stones, a better idea is to purchase them in lots. If you search in your city, you will find good wholesalers, and you can find listings in trade magazines.
Even estate sales, free markets, and pawnshops can offer good pre-gems. If you are lucky enough, you may stumble upon a network of stone jewellers interested in selling the coloured jewels. They can sell you gemstones much below the market values. You also need to look beyond mere cut stones. Finished jewellery, minerals specimens, and rough gems are good investment options.
Recovering from a bad purchase is complicated
So, if you make a bad choice, it is best to find a buyer and sell it off as fast as possible. The harder you cling on to it with the hope of finding a good deal, it will only be foolishness. It’s difficult to predict whether your expensive gem will retain its value in the future. Sometimes, a rare stone can result in a loss of value in the future. So, it’s better to buy low instead of making a rash decision.
Good buyers are the need of the hour
Your buyers would be online auctions, option houses, or jewellery stores, but you have to remember if you don’t have a business, you may not get the best retail price. It’s also not an easy job to make good connections with potential buyers. There are prerequisite skills you need before investing in gemstones.
Many gemstone dealers have good connections with retailers such as jewellers who get in touch with them when needed. Then the dealers send certain gemstones to the jewellers from their inventory. The jeweller then may or may not choose a stone and send the rest back to the dealer. If the jeweller finds a willing buyer, he will pay the wholesale price.
So, maintaining this level of relationship in business is a matter of skill, and those lacking sales skills are not good gem investors.
Notice the mark-up
The mark-up received by low price gems can be higher than that of costly gemstones. The frequency can be five times or even more. For instance, jewellers set a minimum price when ordering stones for their clients. You have an opportunity of making a profit when the difference between the retail and wholesale rates is higher. You can fetch buyers for low-priced gemstones, but this can get stretched for a long. It’s entirely up to you what sort of business you wish to do.
Enhancing the value of the gemstone
Sometimes, it is worthwhile to repair and re-cut certain gemstones to increase your profit potential. Jewellery setting polishing and marketing are significant factors that make your stones look attractive but help you get good potential buyers. If you want that great hike in price, you have to go through specific processes, whether rough and cut gems or finished jewellery or lost gems. Putting that extra effort is a great option to increase the gem value.
By choosing an experienced lapidary, you can change the look of your gem by getting it re-cut as its optical properties are considerably improved. When it comes to setting the stones once again, special skills are needed. However, this one requires less effort than cutting. Keep in mind that when you want to sell your jewellery, finished gemstone jewellery attracts a greater market when compared to loose gemstones.