Mined vs Lab-Grown Gems: The Basics of Financial Investment

Mined vs Lab-Grown Gems? Which is a Wise Financial Investment?For most people, buying jewelry is about choosing a piece that connects with them emotionally, regardless of its price tag.

However, it’s wise to keep one eye on the investment potential of any jewelry you pick up, so that you at least have a sense of whether your money is going into an appreciating asset, or a losing liability.

The main talking point for jewelry investors at the moment is whether lab-grown gems are a better bet than mined diamonds. If you’re in the dark about all this, stick around. I’ll go over everything you need to know.

I’m writing this article because I’m a bestselling entrepreneur as well as an award winning designer.

I love to empower people to learn how to create their most successful lives. So I put together this article on how to make money – doing something that’s based in both smart thinking and the love of beautiful gems.

Gem Investment 101: The Basics of Mined vs Lab-Grown Gems

First up, there’s the initial purchase price to bear in mind. Mined diamonds are typically more expensive than those grown in a laboratory. Why? Because they require more of an investment of time and money to extract from the earth reduces costs.

On the other hand lab-grown gems are often more competitively priced. And they don’t consume anywhere near the amount of resources as their mined counterparts to put into jewelry. They are also completely identical, which means choosing man made gems doesn’t involve making any kind of compromise in terms of looks, durability or anything else.

If you’ve never seen what lab-created diamonds have to offer, it’s worth it to explore VRAI’s engagement ring collection, where you’ll find the latest and greatest offerings in this market niche.  With VRAI’s lab-grown diamonds, there is no middleman. This also reduces the cost to the consumer. You’ll also see that the pricing is appealing, while still attaching strong values to the larger gems and the more elaborate settings.

With all that said, there is some debate over which type of gem holds its value better over time. Lab-grown diamonds are only now entering the mainstream in a major way, in spite of having been invented in the middle of the 20th century. This means that, compared with mined gems, they haven’t had extended market exposure.

Regardless of your choice between mined or man made jewels, doing your research into pricing trends before investing is the best way to ensure you make a wise decision.

Is It Wise to Invest In Colored Diamonds?

It’s not just a choice between lab-grown or mined gems that you need to make. There’s also the question of color to take into account during your research.

Colored diamonds of all varieties can be more expensive than white diamonds, with other factors like clarity and cut coming into play here. Whatever the case, their rarity makes them an excellent asset with significant potential for appreciation in value over time.

Being rare is only half the story. Colored gems often come with particular properties and spiritual qualities attached. This means that it’s not just the value of the raw materials which matters. But also their meaning to certain buyers, allowing them to remain desirable in the long term.

Another point to make is that investing in colored diamonds provides an opportunity for diversification, since these jewels tend not to fluctuate much when compared with other commodities, such as stocks or gold. So for buyers who want consistent growth without taking on too much risk, buying lab-grown or mined gems with colors other than pure white is a route worth taking.

General Investing Tips for Amateurs

As we’ve already made clear, it’s important that you exercise caution and do plenty of research before making any decisions regarding investments. Here are some more tips to help you make wise choices:

  • Familiarize yourself with the market by reading up on gem prices and trends. This will give you a better understanding of what’s available at different price points, so that you can compare them against each other when shopping around for gems or jewelry pieces.
  • Consider only buying from reputable sources, such as certified jewelers who have been professionally trained in diamond grading. This will ensure authenticity and quality for your purchase.
  • Try to find out about the origin of the gem, or its previous owners, if it has ever been resold. Both factors could potentially affect the gem’s value long-term.
  • Only invest an amount which won’t leave you in financial dire straits if the entire amount is lost. Prices of gems and other assets can go down as well as up, so don’t get in too deep, especially if this is your first time investing in something like this.

Advice on Protecting & Maintaining Jewelry

When investing in gems, it’s important to consider how best to protect and maintain them, particularly if you’re planning to keep them for many years before eventually selling. Here’s how you can keep your jewels looking their best, and retaining their value for longer:

  • Store your precious gems away from direct sunlight, as this can cause discoloration over time.
  • Use a professional jewelry cleaner, or mild detergent with warm water, when sprucing up gems. Never use harsh chemicals or abrasive materials which could damage the diamond’s clarity and luster.
  • Check that any settings used on rings or earrings are secure before wearing. Loose settings could cause damage if not fixed immediately.
  • Pay for adequate insurance coverage to account for all of your valuable items, including jewelry. That way you can make a claim if it gets lost or stolen, and you won’t be left out of pocket, even if this can still leave you with an emotional hurdle to overcome.

The Bottom Line

It’s arguably not the best idea to only buy precious gems as an investment, whether they are lab-grown or mined. Trying to play the markets and predict future fluctuations in price, or time your exit, can be stressful if you aren’t always tapped into the state of play, and if you’ve only got limited cash to spare for this purpose.

It’s better to select pieces you love, and ensure that they’re of a good quality when you buy them, and have the investment aspect bubbling away in the background, rather than being the main reason for your purchase.

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