You can certainly make money investing in gem stones, but your cost-basis has to allow for built-in profit when you acquire the stones. You should have a margin of safety, and purchasing for the right price is the largest determining factor in whether or not you will achieve a good return on investment. Like any investment, this requires a good deal of common sense and caution.
You can’t pay retail for gem stones and expect to sell them for a profit quickly. Buying low means looking for wholesale sources, so do your homework. The best prices are offered by primary dealers – those who mine and cut the stones. Secondary dealers usually buy from primary dealers and resell the stones well below retail. Moreover, you’ll get a better price by buying lots of single stones.
Another idea is to generate a network of jewelers who want to sell gems they come across. Sometimes you can find gem stones selling considerably under current values, but you must have the skill to identify them, be able to tell the difference between synthetic and natural stones, and be prepared to do lots of legwork.
At Mosteller American Gemstones in Hickory, NC, we carry natural birthstones and gemstones to create rings, necklaces and earrings. If you have any questions, or if you’d like to place an order, contact us. We can ship anywhere in the world!