Few of us have enough disposable cash to purchase precious gems that cost hundreds of thousands of dollars.

However, if you happen to be one of the consumers that can afford that type of luxury then you understand the painstaking time it takes to perfectly understand the stone that you are buying.

When you engage your time and money in dealing with creators of fine jewelry that specialize in custom-designed jewels, you are aware of the high quality you will be receiving once your piece of jewelry has been completed.

Not all consumers wear expensive gems and some consumers make the decision to invest in these precious stones in order to make a profit. And with that said, for those that wish to invest, the procedure is a little more complex. A Paraiba stone can be just as costly as diamonds and rubies, and emeralds when it comes to investing for a profit.

Investors will generally follow a couple of rules of thumb to make certain that they can engage in this process as smoothly as possible. For example, most investors have the knowledge in knowing how to control their cost basis. One of the ways that they do this successfully is by buying the right gems so that they will be able to have a built-in profit on the day they buy. And paying the right price for the gems is going to determine whether they will be able to get a satisfactory ROI on their investment.

Investors also know that their best prices will come from primary dealers who will mine and cut the stones themselves. There are also secondary dealers who will buy stones for an investor from wholesalers and then resell them below retail. If an investor makes a bad deal because they have made a bad buy on a gemstone, it is not always an easy feat to overcome. When this happens, sometimes the investor does not recover from that particular “bad buy”.

A consumer that is investing in the gem market will also need very reliable resources. This particular type of investing can work somewhat like a matrix where all of the lines connect to each other. And a break in the network can mean the downfall of an investment deal. When you have the right people working within the matrix they will be able to sell your gems at retail prices. This is done this way because the investor will need to be able to pay at least the full wholesale price for any gems they wish to purchase.

Naturally, if you are investing in gems and not buying them for adornment purposes, you know that you will need to be cognizant of just how much you will be able to markup some of the stones that you have purchased before you decide to buy them.As a rule of thumb, lower-priced gemstones will receive a higher markup price than those stones that are more costly to buy. Sometimes investors have been known to increase the markup of the stone five times or more. Most buyers will gratefully accept the 25 or 30% markup on a $50,000 Paraiba stone over other stones that cost more with a lesser overall value. As investors know—the greater the difference between the wholesale and the retail price—the better their chances are of making a good profit. And sometimes investors will take a stone and add value to their gem sale by having the stone re-cut, re-polished and re-set.

So, no matter whether you want to buy precious gems for your jewelry collection or whether you want to invest in precious stones, make certain that you do your research so that you can get the best gemstone for your money.

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