Gem investment

[Julie M Davis]

I would like some advice from anyone who has invested in gems. Having done a lot of research since joining the forum, it's the area that I think would be most profitable. I need to find a broker I can trust, though.

Thanks,

Julie

 

[LowPrices.uk]

Why don't you take a trip to Hatton Garden in London, or the jewellery quarter in Birmingham, and talk to some people?

 

[thegembank.com]

Investing in gems is not an overnight success. You really need to understand the market for gemstones to know what money can be made. Whilst they are easy to buy, they are not always easy to sell. White diamonds will give you a low return, as traders work on very small margins, coloured diamonds and some gemstones, normally very fine, will offer you a better return, provided you can sell them and only over a period of time.
I would be very cautious about going to a broker, because they tend to take very high margins, and you will need to wait quite a while before your stone value floats above that, before you see a return.
Walk the jewellery areas in London or Birmingham and just ask for prices, or look online, you'll see how much they vary, without you even recognising a difference in quality.

 

[Julie M Davis]

Is it wise to enter the market without the help of say a broker? I have done investments before and understand the pitfalls, but getting started in a new area is always tricky!

 

[thegembank.com]

what is your aim? is it to 'trade gems'? or is it to build up a collection that becomes something important to sell in the longer term? Investing in gems is a slow burner.
walking around and asking prices, checking the internet costs nothing. With that knowledge, you can go to a broker and find out what they are asking. If you do this enough, you will begin to get a feel for prices. If you're looking for a trade source to buy gems from, contact the British Jewellers Association and ask for a recommendation.

 

[Ahmad Abubaker1]

A trip to some of the Gem trading shows is your best bet. The Hong Kong Gem show is the second largest in the World and a great place to meet traders from all over the world. You can also buy raw gems from dealers in mining towns but that would be way too risky as scamming is very common. Dealing with a broker is your safest bet to avoid being scammed.

 

[Ahmad Abubaker1]

I can help you out by sourcing in namak madi peshawar if you tell me what you are looking for.

 

[Julie M Davis]

I would be looking to trade them, not interested in keeping hold of them in the hope that they gain value.

 

[matt90bc]

I've looked into this a little before and It looks like its a hard market to break into, it seems to be kept in circles. How would you sell gems at a profit when the buyer could potentially buy them at the price you bought them? Unless your buying from minors which as someone else said is risky business.

 

[HarrisShubert]

It's a tough market, one which I believe you need a lot of experience to be successful in. I think you have to look at it longer term.Keeping hold of your investment and selling it in future years is most likely to make you the most profit.

 

[Julie M Davis]

I suppose I probably need more experience if i'm to have any chance of making money.

 

[vvaannmmaann]

First result on Google.No idea if it is correct or reliable.
http://www.gemrockauctions.com/learn/how-tos/how-to-start-your-own-gemstone-business

 

[HarrisShubert]

Searching on the internet for hints/tips/advice with regard to this industry won't be overly rewarding. I would advise searching on forums related to gems, you are likely to find like minded people. However, my advice would be to make contacts and speak to people face to face in the industry.

 

[Julie M Davis]

Thanks Harris. Spending my evenings doing my research!

 

[Ahmad Abubaker1]

what quality are you looking for? A while ago I was given advice by a well respected gemmologist and gem trader to trade in already cut and polished gems. He said buying rough would be too risky , and more expensive than buying polished and cut gems depending on the quality of the rough Gems. My be if you are really serious about this then perhaps you should pay a visit to the Bangkok gem show.

 

[Funding for Communities]

I would like some advice from anyone who has invested in gems. Having done a lot of research since joining the forum, it's the area that I think would be most profitable. I need to find a broker I can trust, though.

Hi Julie,

I have experience of antique jewellery and small scale trading of gemstones. Simple answer is Do not involved. Find something else you enjoy trading. The experts have a lifetimes experience and the stone you buy will never be worth the price you paid.

Sorry it may not be what you want to hear but I am saving you money.

Mike
Funding for Communities

 

[Julie M Davis]

Hi Mike,

I was very much just looking for advice, so don't worry about being honest with me.

Julie

 

[Roy Bennett]

I believe it is a great time to invest in gems right now.
With jewellery markets growing and growing in Asia, especially in China and India, the demand for precious is high.
I personally have invested through the broker Davenport Laroche, who I’ve been pretty happy with, and I’ve made good money though them over the course of the venture.

 

[Mark T Jones]

If I was a cynic, I'd be suspicious about random threads involving shipping containers or gems, where the magical answer seems to be DL - whose name is associated with several scam alerts.

Just sayin'

 

[Julie M Davis]

Hi Mark, never heard of Davenport, are there scam alerts online?

 

[japancool]

the demand for precious is high.

My precioussssss.....

Seems odd that "Roy Bennett" has only posted in threads related to the things that DL do.

 

[HarrisShubert]

Just googled Davenport. They are a broker service based in Hong Kong with gems and shipping being two of their products.

 

[GraemeL]

If I was a cynic, I'd be suspicious about random threads involving shipping containers or gems,'

and the same two posters names crop up in both but not elsewhere.

 

[Chris Ashdown]

Looked in one of the Sunday papers about two weeks ago and Diamond values down about 40% this year

 

[Peter Durrant]

I too am a little wary of this, but I believe "Davenport" are pretty good - I know a few who have worked with them and got what they were promised - the returns were as advertised.

Can't find any scam alerts online which is a strong indicator to boot. I don't know but if noone has flagposted a business per se, generally signs are promising

 

[HarrisShubert]

Peter what were they investing in with Davenport?

 

[Peter Durrant]

Peter what were they investing in with Davenport?

It was containers I believe - based on fixed return plans. I'm told the returns were actually rather decent.

 

[HarrisShubert]

I have heard the same, however I would always be concerned about dealing with a broker thousands of miles away.

 

[Peter Durrant]

Agreed, its always better to have a door to knock on if things don't go as planned.

That said, I don't see many red flags surrounding this company, which you might expect if anyone had had their fingers burned

 

[Chris Ashdown]

As in all investments, a few who are experts in their field of investments make a lot of money most of the time, a few just lucky punters get a living sometimes, most loose money and look elsewhere for a quick buck

Warren Buffet got himself and his friends very rich by investing in long term companies like Coke Cola, Duracell etc which are not spectacular companies but big sellers in the first world and growing in the third world all the time

 

[HarrisShubert]

Very good point, Chris. Hard to see what next to back, suppose that's why Warren Buffet is a billionaire and I'm not. Vision is key.

 

[Peter Durrant]

Warren Buffet makes it all look so easy doesn't he?

In hindsight, I sit back and say 'they were always going to be winners' - but I know it is never that simple.

Investing is risky business in every case

 

[Julie M Davis]

It can be risky, but I think you do your due diligence and research before committing to an investment then you can take away some of the risk. There isn't an exact science and some will win and some will lose. Using brokers such as Davenport I suppose may take away some of the unknown as they have experts in certain areas.

 

[Peter Durrant]

Agreed, once the due diligence can remove the risk of a real upset, I think it's fair to rely on the knowledge of experts within such an organisation.

Of course, one win is no confirmation of a company, and even with some backing Davenport, it is no proof they are a sure-fire. Just as much as one instance of a loss on an investment is no proof the company is a fraud - it's investing, which after all, is a form of gambling isn't it (though sometimes very worthwhile).