When looking through your jewelry box, and deciding whether a particular piece of gemstone jewelry is actually worth much, or whether you are shopping for holiday jewelry, and wanting to make sure you don’t get ripped off, it’s important to understand where the value of a gemstone comes from, and how it’s actual worth is determined. It has been said by expert investors, that recently, diamonds and other precious stones, are more stabilized investments than real estate. This craze of jumping into the jewelry market to stabilize the economy, is catching a lot of attention from investors. Therefore, it is important to figure out what to look for when buying gemstones (even if it’s not for investment purposes).
There are five main factors determining the value in a gemstone: the beauty of the gemstone (determined by the 4C’s: colour, clarity, carat, cut), the lasting power of the gemstone, the scarcity of the gemstone, the demand or interest raised from the gemstone, and the use of the gemstone in culture and society.
How much beauty does the gemstone resonate?
Generally speaking, when we look at beauty, we look at the quality of the gemstone. In terms of colour, when the gemstone is brighter & more vivid, it is usually more valuable. You want to avoid any gemstone that may be too dark or too light, even colour that is distorted. A clear colour that is intense and bright will be of good value. When it comes to clarity, as long as there are no visible flaws, and it is clear and transparent, this is usually a sufficient judgment of it’s good value. Carats are determined by weight, not size for gemstones, and differs greatly in the varities of gemstones, but the stones that have a higher carat, combined with rarity, will be much more expensive. Finally the cut, which is used to add value to the beauty of the stone. Certain cuts create a reflection in the light that is more appealing. Popular cuts are: brilliant cut, heart cut, marquise cut, round cut, and so forth.
When looking at the lasting power of precious gemstones, most gemstones have a longer withstanding ability than other metals and lesser precious stones. The longer the staying power of the gemstone, when handled with care and proper cleanliness, the higher the value of the gemstone.
The scarcity and the demand for the gemstone go hand in hand. The demand has to be high enough (or the gemstone has to generate enough interest) in consumers and this has to be mixed with very rare precious stones, for the value of the gemstone to skyrocket through the roof. If the quality of these rare precious stones is also of the finest, then the value is even more.
The final point to look at when seeing the value of the gemstone, is the “name” this gemstone has made for itself throughout history and in culture. From the sapphire wedding ring worn by Kate Williams at the Royal Wedding, to the use of certain precious stones in churches, the name that these precious stones make for themselves, also adds into their final value. If the precious stone has established some sort of achievement (being used by churches or as a symbol to represent a certain event), then that adds to the final calculation of the precious gemstone’s value.