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One of the principal reasons is the lack of saturation in the domain of gemstones. If you look at the stock market industry, you will find umpteen people investing in different segments.
However, the gemstone industry is still not heavily commercialized like other sectors and most people don’t have in-depth of gemstones which makes it daunting for them to invest their hard-earned money.
Gemstones offer an uncorrelated asset class, potentially protecting your wealth during market downturns. Consistent returns: Historically, gemstones have demonstrated an average year-over-year return of approximately 10%, making them an appealing option for long-term investors seeking steady growth.
Gemstones have a global demand that continues to grow, as investors and collectors alike are recognizing their enduring appeal as both a symbol of luxury and a sound investment. Key factors driving this demand include:
Expanding economies: As economies grow, more individuals have disposable income to spend on luxury items such as gemstones, both as symbols of status and as investment assets. The United States, for instance, has a robust market for gemstones, driven by collectors, investors and the jewelry industry. Similarly, China's growing middle class and increasing wealth have led to a surge in demand for luxury items, including gemstones from various sources.
Cultural significance: Gemstones hold deep-seated cultural significance in various parts of the world, leading to sustained demand for specific types of gemstones. For instance, jadeite jade has a long history of cultural and spiritual significance in Asia, particularly in countries such as China, Myanmar and Taiwan. High-quality jadeite jade can command exceptionally high prices in these regions.
Fashion and jewelry industries: The fashion and jewelry industry relies heavily on gemstones, driving a consistent and ever-evolving demand for high-quality gems.