Why Collect Gemstones?


 

The fascination with possessing gems is ancient and universal. Gems have intrigued and mystified us for thousands of years. They have been the gifts and ransoms of kings and queens, the reason for crimes of violence and the overthrow of rulers. Important gems are one of the most pleasing gifts to give or receive. Gems symbolize devotion and are the strongest way of saying "forever" to a loved one. Due to the indestructibility of gemstones, they can be passed from one generation to another National Gemstone's philosophy of collecting gems is analogous to owning other rare and beautiful objects such as art, antiques, exotic cars or collectibles: They should be purchased for their beauty, rarity and the enjoyment they give. If they retain value or appreciate, it is strictly a bonus.

Whether you are a connoisseur of fine objects or want to mount your gemstones and diamonds in jewelry, National Gemstone would be pleased to have you as a client.

 

Gemstone Collecting Is Fun

Unlike buying a stock certificate or a bond, gems are enjoyable assets to accumulate. Although gemstones do not provide income in the classical sense, they provide a "psychic" income unparalleled in the collector market. When you collect gemstones, you are buying a tangible that took eons to create. When you hold a fine gem in your hands, you may not be able to put it down - its captivating radiance glows and pulsates! Once you start collecting world class gemstones, you will never again look at gems on television or in a jewelry store in quite the same manner.

 

Gems are Rare, Geological Miracles Mined in Politically Unstable Regions

Gemstones are finite and new finds are becoming exceedingly rare. With the exception of diamonds, most gem sources are ancient and the best gems are long gone. The combination of geological factors necessary to produce gemstones is so precise that deposits are limited and widely scattered. Most extensive colored gemstone mining is accomplished with primitive hand tools, a method by which production cannot be accelerated to meet demand. Most deposits are too small to exploit economically with heavy equipment. The major sources of the world's finest gems are troubled third world countries. Colombia, Burma, Thailand and Kenya are politically unstable regions where supply could easily be interrupted. This is the reality of fine gems today. In the future, quality gemstone demand may be further increased by new collectors and investors searching for private asset based, hedge vehicles. A simple rule of economics is when the supply of any commodity decreases, prices tend to increase.

 

A Centuries Old Historical Appreciation/Gems May Preserve Capital

To Americans, the collecting of fine gems is a relatively new phenomenon. However, throughout history gems have saved people in times of political and economic crises, most recently in Nazi Germany, Vietnam, Iran, and Hong Kong. As a result of decades of political instability, currency devaluation and excessive taxation, Europeans, Asians and South Americans have long been aware of the important role gemstones play in preserving capital and as symbols of power and wealth. Based upon historical price data, quality diamonds and colored stones have proven themselves to be excellent long-term hedges against economic uncertainty and currency depreciation. The key to successfully buying gemstones is to collect when the markets are quiet and sell when the markets are hot. You can collect gems by allocating a certain percentage of your assets on a monthly or yearly basis. Gemstones may represent an ideal store-of-value if inflation accelerates.

 

Gems are Supremely Portable, Easily Concealed and Stored

Gemstones are the most concentrated form of wealth known to man. A gem worth $100,000 fits in the palm of your hand, yet weighs less than a penny! One ounce of the fine unheated Mogok Burma rubies could be worth over $60 million at current price levels. These facts make gemstones the ultimate crisis hedge. If you need a private, portable, non-detectable asset, gems are an excellent vehicle.

 

Gems are Anonymous and Private

Currently, gemstone and diamond transactions are not individually reported to governmental agencies. You can store your gems secretly in a bank vault or other secure location. This constitutes the extent of your maintenance. With gemstones, there is a confidentiality of ownership. However, we do recommend consulting a professional tax advisor for your personal reporting requirements.