The rough stone is unimpressive and will likely be smuggled at least once before reaching it's final destination. Fine gem quality diamonds, rubies, emeralds and sapphires often find their way to Belgium, home of the "Antwerp World Diamond Center". Antwerp boasts five centuries of the finest gem cutting expertise in the world.
While gemstones have been treasured by royalty for thousands of years, they have never been as beautiful as they are today. In 1919 Marcel Tolkowsky worked out the now famous "perfect proportions" for cutting a diamond to reflect the maximum brilliance of light. It is this cutting, shaping and polishing that transmutes a plain looking pebble into a sparkling gemstones. It is interesting to note that a large diamond may be studied for six months or more before the first cut is made. Another year or more may be required to properly cut and polish the stone.
Yet the stone has not finished it's journey. Rough and polished goods are traded at ultrahigh security locations known as "Bourses". These clubs are extremely tight knit and virtually impossible for an outsider to penetrate. Dealers and brokers like Pantanal will frequent the bourses in directing the flow of goods to wholesalers, retailers and private interests.
It is at this level of trading at the Bourse that the wise investor should be securing his stones. A qualified representative of a reputable company like Pantanal will ensure that a client is properly educated regarding their portfolio decisions. This does not mean a jeweler or gemologist. This does mean a dealer in precious stones who has an understanding of financial instruments and foreign trade, in order to effect transactions internationally that will bring about the desired results. The ability to recommend various gem investment strategies does carry enormous responsibility, and must be approached in a cautious and conservative manner.
The actual stones themselves must be authenticated by an internationally recognized grading laboratory such as the Hoge Raad Diamante or Belgian Diamond High Council (HRD), which is the Governing body overseeing the Belgian diamond trade. Other acceptable labs include the Gemological Institute of America (GIA), and the International Gemological Institute (IGI). While certain facilities providing certifications such as Dr. Gubellin in Switzerland will be accurate in their description of stone, they may not be as readily accepted by private investors due to unfamiliarity. For this reason it is highly recommended that the investment grade stones have HRD or GIA certificates only. At no time should a certificate bear an estimate of value, it is only a description of the features of the stone, authenticating the genuineness and natural qualities as well as the craftsmanship of the cut and polish.
Investing Vs Collecting - An Important Distinction.
To the neophyte it must be stressed emphatically that collecting and investing are two completely different realms. The collector of gems has attained a level of affluence which opens the doors to the world's finest treasures. It is simply a matter of taste which determines whether a person chooses art, coins, gemstones or any other collectable as an enjoyable activity in which to engage their leisure time. On the other hand an investor is seeking to make a financial gain based on a sound strategy. Both will have to educate themselves in order to make proper purchasing decisions. Both will have completely different criteria to evaluate in so going.
To make it concise and simple the following is a sound principle to adhere to at all times. Diamonds are the only controlled commodity in the world. Diamonds are the most thoroughly and scientifically graded gemstones and therefore the best gemstones to be used as financial instruments. This is understood in Europe and the Orient where diamond trading in lieu of cash in not uncommon. All other gemstones should be considered as collectors stones.
While many so called gem-investment firms will offer to sell "parcels" of goods containing rubies, sapphires, tanzanites, emeralds, tsavorites, etc., the purchasers of these parcels invariably find themselves with goods that can not be sold at a profit when the time comes. We have had the experience come up over and over again of someone trying to liquidate some stones they tough were a "good investment" only to find that the stones were overpriced by someone ignorant of the complexities of gemstone trading. This does not even begin to address the subject of misrepresentation which has been the source of incredible distress over the years.
The advice of the Pantanal is quite simple. If you want to invest in gems you should be prepared to do a little homework. Stick to diamonds of the finest grade and make. Starting portfolio go from $20,000 to $100,000 and should be held for a minimum of five to ten years. Diamonds do not yield interest and should be used for capital preservation and gain, as one aspect of an overall investment strategy. Diamonds are the most concentrated form of wealth, and being invisible to x-ray, they are the most portable asset in times of political and economic uncertainty.
To the collector of rare stones a caveat is prudent. Learn your "hobby" in the same way you would learn about anything that is important to you. Take your time and enjoy yourself. The gains made in this manner will be so much more fruitful. The appreciation of fine gemstones is acquired through patient and diligent persistence. No one ever learned to appreciate the beauty of an old master's painting overnight, and the same is true of gemstones. It is time to see how nature has made such beauty. It takes time to see how a master cutter has released that beauty which only he knew was there.. Take the time to learn a little and you will enjoy the beauty of precious gems all the more.
Once a stone is selected it should be recorded via a "Gemprint". This is a laser scan of the stone depicting the various features in minute detail and recorded on microfilm for storage at the National archives in Naperville, Illinois. This will ensure absolute accuracy of identification of the stone as no two are alike. In the case of theft, a gem printed stone that turns up in the future can be easily returned to it's owner.
In summary then, remember the following: you must be able to evaluate the factors affecting the stone's value at the wholesale level, receive courteous and helpful education from a reputable dealer such as Pantanal, receive a proper certificate of authenticity from an internationally recognized grading laboratory, have Gemprint service offered to you, map out a proper strategy for liquidation of your holdings, and then buy stones at or near (within 5%) the wholesale level of pricing on the international trading floors. If the firm you are dealing with does not offer ALL THE ABOVE, then wisdom dictates that you should shop elsewhere. Seek out wise council and you will be rewarded with beauty and value.
Those pretty little stones in your jeweler's window have been around the world in the past few years, and have much to tell you when you know how to listen. If stones could speak....