Investing in Emerald Offers Security During Economic Hardship

In many instances, emerald gems and emerald gemstone jewellery are purchased by men and women, for their recognizable beauty and widespread appeal; without ever being considered a long term investment. Nevertheless, ounce for ounce, gemstones are the most concentrated form of wealth; the world has ever known. Emeralds have proven to be very profitable, and like other gems, they are easy to store and conceal; making them one of the smallest physical store of wealth around. In fact, many private investors would be surprised to learn, that an emerald worth millions of dollars; can be less than 4 inches in length.

Although not as widely popular as stock market investments, there are some investors who consider investing in emeralds, to be a very serious business opportunity. Like any tangible asset, investments in emerald offer additional security during uncertain economic times, which investments in stocks, bonds, and other traditional methods; cannot provide. In fact, even when the price of high quality diamonds fell by 20 percent, emerald gems held their value; and in some cases even saw their values increase. Thus, because their values do not drop like stocks or other traditional investing options, more and more investors consider investments in gems like emerald; to be a sound investment.

The world's attraction to diamonds, emeralds, sapphires, and rubies, has its roots in the widespread belief, that their rarity holds a special place with investors; especially when assessing their overall appeal and determining pricing. Because of this, investments in gemstones and other precious assets like gold and silver, will hold real value in all currencies and are used in many countries; as an acceptable alternative to paper money. Thus, when wondering whether investing in emerald is a good investment, investors should consider the precious gems' historical performance in the markets, its preservation of personal wealth especially in times of inflation and economic turmoil as well as; emerald's rising popularity with other investors.

Exquisite Emerald Gemstones Appeal to Investment Seekers

Many investors who need a private, portable, non-detectable asset, are investing in high quality emerald gemstones, to increase and maintain the value of their investment portfolios. Why? Like gold and silver, precious gems tend to hold their real value in all currencies and can even provide an alternative to paper currencies. Moreover, gemstone investments are widely considered the smallest physical store of money around.

There are three main emerald mining areas in Colombia: Muzo, Coscuez, and Chivor. Making an investment in emerald from Columbia, especially those from the Muzo mines, will (by far) command the highest value in the market. Generally speaking, they are well-known for their exquisite appearance, large crystal size; and minimal impurities. In fact, A high quality Colombian emerald, will fetch a 10 to 20 per cent premium over African and Brazilian emeralds; of similar size and clarity.

Many investors prefer gemstone investments, because they are extremely portable, and easily concealed or stored. Furthermore, gemstones are the most concentrated form of wealth, known to man. Surprising to most, a precious gem worth $100,000 fits in the palm of your hand, yet weighs less than a penny.

Tangible Investments Restore Investor Confidence in Investing

Who wants to bet that the New Year holds a record number of money and financial resolutions, for investors in 2013? The first of which will likely be, a direct approach at improving their investing strategies and unproductive investment portfolios. Unsatisfied with the traditional approaches to investing, investors all around the world are demanding recognizable change.

At the top of the list of growing concerns, is the preservation (at the very least) of an investor's principle and personal wealth. This is especially important criteria, for investors who are saving for retirement or live on a fixed income. In this instance, it is paramount that investors find investments that protect against rising inflation and the negative effects of economic uncertainty.

For investors who want to keep their investments close, because they are concerned about protecting their long-term wealth, an investment in a tangible assets can offer a safer alternative; to tumultuous stock markets and low yield bonds. In most cases, traditional investments pale in comparison  when compared to the consistent performance of precious gemstones, like investing in emerald, ruby or diamond; for example.

All things considered, investors are just not happy with the performance of their traditional investment strategies, and they have voiced their readiness for change. With that being said, alternative investments are rising in popularity, as more investors display confidence in investing options like gemstone investing, and embrace opportunities that have demonstrated that they can produce profits; regardless of the performance of other asset classes.

New Approach Makes Investing in Emerald Much More Affordable

Gemfields, a London-based gemstone and mining company, reported recently that their revenues have more than doubled; in the past year. The company is a leading producer of the world’s emerald supply with an approximate 20 percent market share and is looking forward to substantial market growth in the years to come.

Earlier this month, Gemfields announced that their Kagem emerald mine in Zambia has the potential to produce 1 billion carats of emerald and beryl generating a value of close to $900 million over the course of the next twenty years. Needless to say, shareholders of the company are more than happy over the recent announcements, knowing that they put Gemfields in a strong growth position moving forward; into the future. The company’s stock rose 11 percent on the news of the announcement, currently valuing Gemfields stock in the neighborhood of £135 million.

Analysts say that Gemfields has created the world’s first integrated pipeline, that will bring emeralds directly from the mine into the international market; allowing consumers to trace the origin of each precious gemstone. At this stage, the company is focusing their marketing efforts on promoting Zambian emeralds, that are less costly than the established Colombian gems. With this approach, Gemfields is looking to open a new market to consumers seeking an investment in emerald, that is more affordable.

These recent developments will certainly solidify Gemfields strong position in the colored gemstone marketplace. I feel that  the company has utilized their strengths in hard assets and marketing savvy, to put themselves in a leading position in an industry that grows steadily, as demand increases for a dwindling and/or limited supply of precious gems and gemstone investment opportunities.

Reasons to Invest in Hard Assets Like Investing in Diamonds

There are a lot of good reasons for private investors to invest in hard assets, especially in times of economic uncertainty. Hard assets can offer benefits that traditional investments cannot. For an investor who has a traditional portfolio filled with stocks and bonds, the addition of hard asset investments, can help to diversity an otherwise risky investment portfolio.

With hard asset investments there is also the opportunity for very competitive investment returns, when compared to traditional investing strategies; like stocks and bonds. As well, investing in hard assets has demonstrated that it can protect investments against inflation and economic uncertainty. For example, in the United States a certified deposit pays a rate of 2 percent interest, per year. This is far from the rate of inflation.

If included in the alternative investment portion of an investment portfolio, an investing strategy that includes hard assets, will dramatically improve an investor's risk-reward profile. And luckily for investors, there are many different approaches, which will allow them to invest in profitable hard assets. For example, there are many great reasons to invest in diamonds, other precious gemstones, certified coins; as well as gold, silver, platinum, and other rare metals.

Precious Gemstones Protect Against Inflation and Deflation

The primary influence of gemstone values today, is the fact that gemstones have reasserted themselves as the best form of money, the international community has been able to agree upon; in 5,000 years. For those who are cynical of investing in gemstones, this could be hard to believe, let alone accept. Nevertheless, precious gemstones have clearly demonstrated to the investment community, that their values can increase over time, in either an economy dominated by either inflation or deflation.

Investors must keep in mind, that what high inflation really means, is that the value of a currency is collapsing. All goods do not suddenly become more valuable, but rather the money we use to pay for these goods, begins to lose it's value. In most instances, high inflation is caused by excessive money-printing. So, it could be said that the reason why precious metal and gemstone investing has soared in value during high inflation, is because of the realization that paper money is neither rare, nor a store of value. In contrast, gemstone investments have demonstrated that they can consistently hold their value, resist the negative effects of inflation and protect an investment against an unforeseen drop in value.

With a gemstones standard, paper money must be at least partially redeemable in real bullion or gemstones. This requirement protects a currency in times of deflation — because people know that no matter how badly an economy sags that their money is backed by a dependable hard asset. With gemstone backing, currency is a secured asset. Without something like gemstones backing them, all paper currencies are nothing but unsecured IOU.  In other words, what happens is that there is a crisis of confidence with respect to paper currency, with the consequence being that people want to rid themselves of paper money, in favor of real money; like investing in diamonds and other precious gemstones.

Today, for the first time in history, the entire world is operating with purely fiat currencies. For those unfamiliar with the term, this means currency that only has value through a declaration (or fiat) by some government that it has some value. With that being said, anyone sitting with unsecured assets is going to be severely tempted to dump those assets, when a fear of insolvency arises. More specifically, it’s time to analyze how gemstone investments will react in the near future, as the inevitable bankruptcy of the United States and the never-ending political uncertainty in Europe becomes painfully obvious; to more and more private investors.

Adding Hard Assets is a Great Way to Diversify a Portfolio

Many investors believe that hard asset investments are meant to be enjoyed, held onto and later sold for a profit. Typically, the people who invest in diamonds or other precious gemstones, hold on to their investment until they can sell the hard assets; for more than the original purchase price.

One thing is for certain. When you adopt the mentality of diversifying your portfolio, you have created a buffer against a financial crisis, which can last over a relatively long period of time; and has proven to protect against inflation. Furthermore, it has been established that investing in a number of different asset classes will smooth out a portfolio's performance over time, as it can be expected that some assets will zig; while others may zag.

Many investors are surprised to learn that only hard assets have outperformed all other major asset classes, since the financial crisis. The investing lesson here is that diversification as a hedge works. Especially within a major asset class, such as gemstone investing and other hard assets.