How not to get burned when buying precious stones?
A nice and high-quality gemstone appreciates in value by ten percent or more every year, and in the case of high-quality Colombian emeralds it is usually much more. As with any investment, however, an investor should know who, what and how to buy. We've compiled a few points as a reliable guide to buying investment gemstones.
Credibility of the trader
Make sure that the gemstone dealer has a history, experience and a good reputation. Information gathered from websites, social networks or internet search engines can also help. References on social media may not always be relevant enough; word of mouth recommendations from someone who has already shopped with the dealer are valuable. Be wary of companies where the actual owner or managing director of the company is undisclosed or resides abroad. For example, in the event of a claim, you will subsequently discover that the sales representative who sold you the precious stone is not competent and you cannot trace the owner. An honest stone dealer should go to the market with skin in the game, and should be easy to trace, and should not only be listed on the website by name and ideally with a photograph, but should also have a direct contact.
Proving the origin of the gemstone
The seller should know the exact origin and trajectory of the stone: where it came from, how old it is, and how it was acquired. The stone may have been acquired on the gemstone exchange from another dealer, directly from the mining company and the owner - in our case of emeralds - of the mines, or from a processor - a cutter, etc. When the seller does not know the exact origin of the stone, it is a warning sign and you should be extremely cautious in your dealings. In the case of emeralds, it is very important to know the true origin of the stone, as Colombian emeralds are the most expensive, the most desirable and the most interesting from an investment point of view. Brazilian and Zambian emeralds are generally cheaper and more readily available from dealers.
Actual ownership of the offered gemstone
If you are buying a stone from a dealer who is not the owner, you will want to know the procedure in case of a possible claim and have it written and confirmed by the seller. You want to know whether you will be claiming from the agent (dealer) who sells you the stone or from the actual owner - and therefore exactly where - and under what conditions?
Certificate of origin and quality
When buying a rare and investment stone (we do not mean the usual "ready-made" stones in jewellery shops), a professional opinion - a certificate - issued by a gemological society (a forensic expert in the field of precious stones) is a matter of course. If the dealer does not offer it, this in itself is already suspicious. Definitely insist on it and do not buy an investment stone without it. Also, with certificates, it is important to monitor their credibility. The easiest way is to check on the Internet whether the laboratory or company that issued the certificate even exists, and the same with a forensic expert. Every court in our country has a list of forensic experts. The appearance and pomposity of the certificate are not as important as who issued it. On our certificates with a round stamp, you will also find the phone number of a gemologist and a forensic expert, with whom you can check the value of the offered stone, or have it appraised during the ownership of the stone. The certificate is a kind of birth certificate of the stone. In the case of an emerald, it states, among other things, the origin of the stone, its shape, colour, weight and clarity. All important data determining the value of the stone. Have the dealer explain all the details of the investment stone! This is how you can tell if you are dealing with a true professional. The dealer must be able to explain to you all the parameters of the stone mentioned in the certificate, including the contact details of the gemological company or expert witness who issued the certificate.
Verification of certificates
A number of established companies issue their own certificates. For an investment gemstone, it is recommended to have a third-party appraisal - a gemological company (forensic gemologist) - independent of the company selling the stone. It may happen that in the case of self-certifications, the selling company gives inaccurate, usually overestimating data, for example, on the quality of cut, clarity, colour tone. Asking for a self-assessment of the stone is a perfectly legitimate request from the buyer and it is clear that the certificates should not vary significantly. If they do, the question arises as to how it is possible that the parameters of the stone are worse than those stated by the seller.
Do not buy under pressure and without sufficient information
A trivial and clear recommendation that buyers like to take lightly. In the autumn of 2021, jewellers and jewellery makers from all corners of the Czech Republic started contacting me to tell me that representatives of a well-known gemstone trading company were offering them high-quality Colombian emeralds at unbeatably low prices. They allegedly came from a parent company based abroad and owning emerald mines in Colombia. The price seemed very low for Colombian emeralds, so I urged everyone to be cautious. I estimated that the emeralds in question were at best from Brazil, at worst synthetic emeralds. The Certificates of Authenticity looked very professional and credible, the emeralds were professionally vacuum packed like investment diamonds. However, when I contacted my business partner in Colombia, also the owner of emerald mines, I found that no one in Colombia knew the company the jewelers mentioned. After some time, the media reported that a jeweller from Prague had bought synthetic emeralds passed off as genuine Colombian emeralds for several hundred thousand crowns. He then explained to the police that he had to make a quick decision because of the bargain and did not have time to get the necessary information. What can I say?
Pricing
The price of a particular stone depends on the 4 C's (colour, clarity, cut, carat), or colour; clarity; quality, but also the shape of the cut; size and, in the case of emeralds, the origin. Our philosophy of selling investment emeralds is that before buying, the client receives comprehensive information about the Colombian emerald, its uniqueness and value. We take pride in the fact that the client leaves us with the feeling that they have received a quality, unique gem for their money that will only increase in value over time. Why, you ask? We will be happy to explain this to you during a personal meeting. Do not hesitate to contact us, we look forward to seeing you.
