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Gems
as Investments
The dictionary defines an investment as "the outlay
of money for income or profit." A good investment
must therefore return money to the investor in the form
of a continual payment (as with a stock dividend) or
the sale of the investment item at a price higher than
the purchase price (capital gains).
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An
ideal investment offers a high yield (rate of return),
or the pros¬pect of substantial appreciation, with
minimal risk. Usually higher gain potential is achieved
with accompanying higher risk. And, to one degree or
another, all investments can be considered speculative
ven¬tures. |
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Gems,
antiques, art, old cars, stamps, comic books, and other "collectables"
do not provide a steady monetary return, like high yield stocks
Their potential as investments is based solely on their ability
to appreciate in value. But what is value? It is the attribute
given by human beings to things that they wish to gain and/or
keep.
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DIAMONDS,
GEMSTONES & CRYSTALS
FACTS & FIGURES |
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idea of "intrinsic value" is almost
a contradiction in terms, because only humans
can endow value on a commodity through their desire
to possess it. Since humans can change their values,
all commodities are subject to the status they
are given in different societies and cultures,
and at different historical times.
Several commodities, however, seem to have found
favor in nearly all societies and cultures, in
all historical periods. Their value has thus become
traditional and a part of human civilization.
. 
Their
association with concepts of wealth, treasure,
desire, status, and power runs like a thread through
history. Their value is thus universally accepted
and acknowledged throughout the world. These commodities
are the pre¬cious metals, and gems. |
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To
be sure, specific gems have risen and fallen from favor in
specific societies at specific times. Bohemian garnets were
all the rage in Vic¬torian times, but are hardly seen
today. Amber and lapis were royal gems in ancient cultures,
but no longer command kingly prices. But gems in general have
acquired, through millennia of tradition, the status of "intrinsically"
valuable objects, like gold bars. Therefore, while specific
gems may not rise appreciably in cost in a given period of
years, they are likely to hold their value extremely well. |
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