FAQ

INVESTMENT AND PERFORMANCE

Why invest in gemstones?
Gemstones are small and light, retain their value and concentrate it in a far smaller volume than other renowned investments, such as gold. They are easy to store, transport and pass on.

Which gemstones make suitable investments?
Naturally coloured, untreated gemstones, especially rubies, sapphires and emeralds. For very long term investments, diamonds are also suitable. Should you already have such a portfolio, then tourmaline, alexandrite and tanzanite are an excellent addition.

Are all rubies, sapphires, emeralds and diamonds suitable investments?
Only high quality, naturally coloured, untreated gemstones are suitable. Size is also a factor: an investment in coloured gemstones begins with a weight of 1 ct, for diamonds the weight should be at least 0.5 ct

For whom are gemstones a suitable investment?
For people who already have other investments and wish to invest 10 – 20% of their capital in something that is physically real, beautiful and easily transportable.

Should the gemstones I buy be ones I desire, or is it just a question of buying what is recommended?
The Glowgem recommends only purchasing stones that you personally find desirable: a gemstone is not purely an investment, but as with other beautiful things it also provides pleasure. Our experience shows that when the time for resale comes, gemstones that the owner finds attractive are easy to sell. In this context we talk about gemstones that have “life” to them: lively gemstones are scintillating to look at and appealing to the beholder. Only purchase gemstones that you find attractive.

How long is the investment horizon for gemstone investments?
Gemstones are an ideal way of storing and concentrating value in a very small volume. There is nothing speculative about them. The Glowgem recommends an investment period of at least 5 – 10 years.

What returns can I expect from an investment in gemstones?
The last 25 years show that the value of rubies has increased by over 8 % p.a., while that of sapphires and emeralds has increased by roughly 4 – 6 % p.a. White diamonds have unfortunately lost value since the financial crisis of 2008.

Why only the above-mentioned gemstones? What about alexandrite, tanzanite, aquamarine, tourmaline, coloured diamonds and so on?
To begin with we always recommend the best-known coloured gemstones: rubies, sapphires and emeralds. Once you have a portfolio of these, purchasing other types of gemstone can be a useful addition.

Are diamonds more valuable than coloured gemstones?
For small stones of 1ct or less, yes. However, as the size increases, this relationship changes: a 10 ct ruby, for example, costs more than a diamond of the same weight.

How much money should I invest in gemstones?
The Glowgem recommends investing 10 – 20 % of your liquid capital.

Can I wear the gemstones I have invested in as jewellery?
Gemstones have always been a highly emotional, wearable investment; both the setting and removal of gemstones can be done without causing damage to the stones themselves. Glen Gemstone will happily arrange for your gemstones to be set in whatever kind of jewellery you desire.

Why do gemstones hold their value?
Gemstones have been highly sought after for over 5000 years and every dynasty has possessed collections of jewellery and/or gemstones. Some examples of this can be seen in the Kremlin, The Tower of London and the Imperial Treasury, in Vienna. Good gemstones have always been in demand and this demand will remain in the future. In times of war and crisis gemstones have always been considered a safe-haven currency.


GEMMOLOGY

What is a gemstone?
According to common and historical opinion, a mineral with a Mosh’en hardness grade of 8 and above, which is rare and beautiful. Stones with a hardness of less than 8 used to be called semi-precious stones. This distinction is no longer common today.

What does “treatment” mean for gemstones?
The best gemstones to use as investments are those that are only cut (cutting is not considered a treatment, but brings out the beauty of the gemstone). A typical treatment for ruby and sapphire, for example, is “burning”: a heating of the stone by which the color is improved and the purity of the stone increases. Color diamond and also topaz can be changed in color by radioactive irradiation. Only gemstones whose certificates explicitly state that they are “natural color” or “untreated” are considered untreated. All other gemstones are automatically considered treated.

Is “carat” in gemstone the same as “carat” in gold?
No, “carat” is a unit of weight, one carat is 0.2 grams or in other words, one gram is equal to five carats. “Carat” in gold denotes a fineness: “14 carat” is equal to a fineness of 585, which is 58.5% pure gold in an alloy. “18 carat” is equal to a fineness of 750.

Can I rule out that the diamond I bought at The Glowgem is a “blood diamond”?
Yes, because The Glowgem only purchases diamonds that come from certified mines.

Where do The Glowgem’s rubies come from?
Primarily from Burma, Mozambique, Madagascar, Afghanistan, Tajikistan, Tanzania, Thailand and Pakistan.

Where do The Glowgem’s sapphires come from?
Mainly from Burma, Sri Lanka, Madagascar, Afghanistan, Ethiopia and very rarely from Kashmir (because exceedingly rare).

Where do The Glowgem’s diamonds come from?
From various countries such as Namibia and Canada, they are mostly cut in India.

How can I tell the difference between a natural and a treated gemstone?
As a layman: not at all. Treatments can only be determined by gemological laboratories and described in the certificates. The Glowgem delivers every gemstone with at least one certificate from an independent gemological laboratory.

Are there fakes in gemstones?
Yes, unfortunately the range of fakes or artificial enhancements is very wide. This is exactly why it is important that you only buy gemstones with a certificate from an independent gemmological laboratory. Some high-quality gemstones often have several certificates from different certification bodies.

Are gemstones indestructible?
“Hardness” is described as resistance to a penetrating object. This says nothing about brittleness or cleavability; diamond, for example, is very cleavable, emerald is relatively brittle. So, unfortunately, gemstones are not indestructible.


GEMSTONES STORAGE

How do I store my purchased gemstones?
In any case, gemstones should be stored separately from their certificates, as the certificate is recognized as proof of ownership. A popular option is to store the gemstones in a safe and the certificates e.g. with or behind books. The Glowgem will assist you as a customer at any time with the ideal storage of your gemstones.

Can The Glowgem arrange insurance for my gemstones?
The Glowgem will gladly put you in touch with a reputable insurance company that will take care of your vault insurance as well as a so-called carrying insurance for your jewelry.

Can The Glowgem take care of the storage of my gemstones?
Yes, The Glowgem has storage capacity in a high security warehouse where your stones can be stored insured. The cost for this is approximately 1% of the net-purchase value per year.

Can The Glowgem store my gemstones in a bonded warehouse?
Yes, from an investment sum of 100.000 Euro this is possible, ask us for the conditions.