Why buy precious and fine stones?
Whether it is to invest, jewellery, or collection, you have the choice:
REMINDER ON CLASSIC INVESTMENTS
- Traditional bank investments pay very little interest after tax.
A "banker" friend of mine, whom I asked for investment advice, gave me this reasoning: "At best, if you invest in a bank, after taxes you will get back 1.5 to 4% per year. But you run the risk of seeing your money disappear in the event of a crisis, so my advice is to keep the money in a safe. »
- The investments and sums deposited in banking institutions are not guaranteed, as one would think, up to €100,000.
Since the order of 21 August 2015, France has transposed the Bank Recovery and Resolution Directive (BRRD) into national law.
In addition, in August 2016, the €100,000 limit was lowered to €60,000 for life insurance investments.
THE SO-CALLED INVESTMENT STONES
- The increase in the price of gemstones has been significant and continuous for several years
Globally, there are some common factors such as the increase in production costs due to the increase in energy costs on the one hand and the decrease in productive deposits on the other. The population is increasing and gemstone resources are decreasing.
The increase in production costs is also due in some countries to more stringent environmental regulations, for example in Brazil and Sri Lanka.
Some stones increase less than others like white diamonds or tanzanites. But these conditions can change quickly if investment or even fashion phenomena intervene like countries like China. The production can then not be enough to meet the demand and the prices soar.
Many gems have increased in the last 5 years with an average of 10% per year... Writing this is not meant to make a tempting proposition about the future, but only an information about what happened in this market in the last years. It does not imply anything about the future...
This is particularly the case for certain important stones such as rubies, sapphires and spinels. These price increases also affect white diamonds but only in the best qualities and certain sizes, as well as coloured diamonds.
At auctions such as Sotheby's and Christie's, new records are set every time for the price per carat. And these records drive the rest of the market up.
Compared to other gemstones, white diamonds (apart from exceptional sizes) have a smaller but steady increase over the long term.
This is due to two main causes.
- The white diamond is not a rare stone compared to other gemstones and particularly the ruby.
- On the other hand there is always a very dominant position of the company DE BEERS on the market of the rough diamond; what has for effect to regulate the prices. At certain periods, according to the offer and the demand, certain categories of diamonds, according to the color and the purity can even sometimes fall if the demand is weak.
Thus, apart from the diamonds of exception by their size and their purity, according to my analysis, the white diamond is not a stone of investment, on small dimensions.
And we do not work on this type of diamond, except for large sizes.
In our opinion, it is illusory to invest in "investment diamonds" apart from coloured and very large white diamonds.
The colored diamond is on the other hand very rare in the beautiful qualities and sizes. The price of coloured diamonds has soared in recent months and years. There is no objective reason for this to stop. And that is all the more notable for the pink diamonds and the even rarer red diamonds coming from the mine of Argyle in Australia (closed since November 2020). Its primary source of revenue is white diamonds, not coloured diamonds. These pink and red diamonds will become even rarer.
This observation of a significant increase in gemstone prices on the producer markets is based on our knowledge of this market over the past 20 years of activity.
There are too many imponderables around the world to be able to guarantee what the future will be.
We just bring you our expertise, our experience to help you in your decision.
- The taxation of gemstones is advantageous in France.
On resale, there is a choice between two tax regimes: either a flat-rate tax of 6% + 0.5% CSG/CRDS on the total value of the resale, or a tax of 34.5% on the capital gain realised if the resale takes place within the first three years. The rate of this tax in full discharge is then degressive by 5% per year until it becomes zero after 22 years of ownership. VAT is payable on the amount of the sale.
Note that there is a total exemption for any transaction under 5000€.
- The approach
You wish to acquire a gemstone to invest ? Here is how I can help you in your approach.
I would also like to warn that "investing" in one or more precious stones is a risk-aware approach. Observing the very strong increase in prices in recent years, analyzing the objective fact that the quantity of stones available is only decreasing in the face of increasing demand, should not make us forget the fact that we can neither predict nor guarantee the future!
It is advisable to define your budget, then the type of stone that you prefer. If your objective is an investment, you should not diminish your pleasure either. If you prefer blue sapphires, colored sapphires, spinels, I will be able to satisfy you and accompany you.
Of all the stones that can be used in jewellery, the rarest is the ruby. Of course, I am only talking about the best quality stones, also called "pigeon's blood". But the beautiful rubies of a certain size reach very consequent sums.
We will see together if a stone of the stock can be appropriate. But, the most frequent case is the acquisition of a "recent stone", that is to say a gemstone that I will be able to find you during one of my trips. This step must be done in total mutual confidence. From the producer country, I will contact you by email or by phone, describing the stone and sending you a video. If you confirm your agreement, the stone is paid immediately by bank transfer. You benefit from the best conditions, with a small additional discount from the seller because of the immediate payment and I do not have to include any capital costs.
All these stones are provided with a certificate of laboratory in gemmology.
Moreover, for a great number of stones we can bring you the guarantee of "ethical stones", totally traced from the source of supply to you. We work particularly in this sense in Sri-Lanka where you can even be received on the spot to choose your stone with us, if you wish it.
For the resale there is always the solution to propose them to the auctions of big houses like Sotheby's or Christie's which will be delighted to present your quality stones. It is important to keep in mind that the more valuable, high quality and heavy the stones are, the easier it will be to resell them.
- Cautionary note
If you contact us for the purchase of a gemstone in your wish to make an" investment", we will put our knowledge and experience at your service. We have been analyzing the evolution of gem prices for several years and our experience is the fruit of 20 years of presence on this market.
We offer you our expertise but we are not a financial institution and we do not offer any guarantee on the evolution of the value of your purchase. You are the immediate owner of the gemstone you have purchased and as such we are not an intermediary for an investment, but rather we are a purely commercial act of purchase and resale.
As with any investment, there is always an element of risk, which also depends on the evolution of global economic and conflict situations.
Our information is based on our knowledge of the past and current evolution of gem prices on the producer markets and on the selling prices in the major auction houses. We put our expertise and our knowledge of the gemstone markets for 20 years at your disposal, but.... in no case we can guarantee the future!
GEMSTONES OF COLLECTION
Many of our customers are gemstone collectors. These are marvels from the earth which fascinate by their beauty enhanced by the talent of the lapidary.
Some collectors systematically search for all varieties of gemstones and others focus on a single family or variety of gemstone. Some collectors are only interested in sapphires or spinels because of the demand for this type of gem, and others are interested in gems such as lagoon tourmalines and parabas, and exceptional garnets...