Would you rather invest in a ruby or a diamond?

Would you rather invest in a ruby or a diamond?

 

Rubies can win hearts and earn a place in investment portfolios, and with good reason. Rubies are the rarest and most valuable gemstone in the world, after diamonds. Consequently, rubies of excellent quality are highly sought after by collectors and private buyers alike. The price commanded by a rare, high-quality ruby may even end up being higher than that of diamonds. Individuals who want to invest in a red-coloured gemstone may also wish to consider a red diamond. In this article, we tell you more about choosing rubies or diamonds as a strategic and profitable investment.

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Why invest in precious stones?

Investing in gemstones is considered as investing in commodities and is, therefore, an alternative investment. An investment of this kind has several advantages over other investment products, such as shares, investment funds and property.

Gemstones – diamonds, rubies, sapphires and emeralds – have a relatively stable value, and this is undoubtedly the most significant advantage of investing in precious stones. On the one hand, because high-quality gemstones are part of a niche market, which is less likely to be affected by economic developments. On the other hand, precious stones are a natural product in limited supply. This scarcity – which, by the way, is increasing – combined with growing demand, is therefore particularly advantageous to the law of supply and demand, which results in a relatively constant rise in the price of precious stones.

An investment in gems is therefore undoubtedly worthwhile in the long term. In most cases, a long-term investment is less affected by a temporary financial downturn and can, therefore, also weather an economic crisis. It is precisely for this reason that it is wise to diversify your investment portfolio sufficiently and supplement it with long-term investments in precious stones.

What is the difference between rubies and red diamonds?

Distinguishing between rubies and red diamonds is relatively simple because of the clear difference in brilliance and size. The brilliance of a ruby is less deep and less intense than that of a red diamond. In addition, the underside of a ruby is often cut much thicker to emphasise the colour.

However, in case of uncertainty, analysis can also be carried out in a laboratory: using professional equipment, specialised laboratories analyse the gemstone to determine whether it is a ruby or a diamond.

A colourless diamond consists of only one element, namely carbon. Coloured diamonds usually contain a natural element other than carbon, which is responsible for the colour. Red, pink and brown diamonds, on the other hand, are the result of a distorted crystal structure. Diamond is also the hardest material in the world and scores 10 on the Mohs hardness scale. Ruby and sapphire – two variants of the mineral corundum – score 9 on the same hardness scale. The deep red colour of a ruby is due to the presence of chromium in the mineral corundum. The red diamond and the ruby are, therefore, two completely different precious stones.

You may be able to distinguish between the two gems yourself, even if you are not an expert. This is because red diamonds are much more brilliant than rubies. Both rubies and diamonds have inclusions. In rubies, however, such inclusions are much more common and therefore influence the brilliance and value of the ruby. Diamonds and rubies are also valued in another way. While clarity plays an important role in diamonds, colour is a decisive factor in the value of rubies.

More about the price of rubies

Which is the better investment: rubies or diamonds?

An investment in precious stones differs from other forms of investment in that it is tangible and its value is relatively stable. Diamonds are perhaps the best known, but an investment in sapphires, emeralds or rubies can also provide a long-term return on your investment. Whether you choose to invest in rubies or prefer diamonds depends partly on your investor profile and partly on the risk you are willing to take.

Diamonds show a more consistent price increase over the years compared to the price of ruby per carat. An investment in colourless diamonds is also different from an investment in coloured varieties. Colourless diamonds – also known as white diamonds – are more commercial in nature and are characterised by high demand and relative abundance. An investment in this type of diamond, therefore, carries less risk, but it also means that the rewards may be less. Coloured diamonds, on the other hand, are much rarer and fall into a specific market segment. This is particularly true of red diamonds, the rarest of the coloured diamonds. In addition, the demand for coloured diamonds has increased significantly in recent years.

A second reason to invest in diamonds is the maximum security that such an investment offers. It is very common to certify the value of a diamond through a certificate issued by a reliable laboratory, such as the GIA, HRD or IGI. A diamond certificate allows you to check the value of your diamond. Such a certificate also plays an important role in the resale process. For other coloured gemstones such as sapphires, rubies or emeralds, a certificate is much less common. Some laboratories offer a ‘Coloured Stone Report’ for a sapphire, emerald or ruby. A GIA Coloured Stone Report mentions the following:


  • Characteristics of the stone: weight, dimensions, shape, size and colour

  • If it is a natural or synthetic gemstone

  • Possible treatments the stone has undergone

  • Probable region of origin

Unlike diamonds, sapphires, rubies and emeralds are not judged on quality. Currently, there is no universal system for classifying these precious stones. Because of the many variations, it is extremely difficult to establish a classification system for coloured gemstones.

BNT Diamonds as an investment partner

Whether you are considering investing in diamonds, rubies or other gemstones, you can always count on BNT Diamonds when it comes to buying and selling. BNT Diamonds takes a different approach from most jewellers and diamond dealers. We buy all diamonds and precious stones at the source. As we do not work with intermediaries – who always take profit margins – we can guarantee you the best value for money. This ensures you get the most out of your investment.

Similarly, if you wish to sell your diamond or gemstone, you can count on our expertise. We even offer to buy back colourless diamonds under certain conditions. If you have a coloured diamond or a rare gemstone that you wish to sell, you can turn to BNT Diamonds for guidance in selling to a niche audience or through specialist auction houses. You can also entrust us with transforming your diamond or other precious stone into a unique piece of jewellery, which underlines the emotional value of your investment.

BNT Diamonds strives to make gemstone investments accessible to a wide audience. Contact us or make an appointment in one of our showrooms and let professionals guide you in the selection of your investment diamonds.

Author: Baunat Diamonds
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

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