The Natural Gem: Ruby, a stone as an investment
02.02.2021 | 11:30
Ruby is the most suitable of all gemstones for investment purposes. Due to its rarity, it is increasing in value very rapidly and has the highest store value. A ruby the size of your fingernail can easily be worth the equivalent of 2-3 kg of gold. A commentary of Thomas Schröck (Managing Director, The Natural Gem).
The Ruby and its brother, the sapphire, belong to the same mineralogical group: Corundum. The ruby, derived from the Latin word for “red” - “rubeus” denotes the red variety of this mineral, with a hardness of 9, it is the second hardest mineral known to antiquity, after the diamond. The red color in ruby is caused by trace amounts of the element chromium oxide. The most important criteria when buying ruby is the vibrancy of the stone. Ruby should shine and sparkle, have "fire" and glow from within. The color should be deep red with no brown tones. Pink tones are accepted – especially when the origin is Burma. This combined with the smallest possible inclusions makes the stone valuable and expensive. Ruby has a special feature. This is what is known as "fluorescence". This causes the stone to shine much brighter in candlelight than in daylight, which is how it earned the name "evening stone". Tip: Before buying, always look at a stone under various lighting (white and yellow light) to see whether you still like it when the light changes!
To score as an investment stone, the ruby should be oval, cushion or round - cut. These cuts have a positive effect on resale. In contrast, those with a marquise or heart cut should rather be avoided. The stones with Burma origin increase in value the fastest, followed by rubies from Mozambique. In general, the value of the ruby can be expected to increase in value by 6-8% per year. The larger the stone, the hig her the increase in value tends to be. It is generally advisable to only buy stones from 1 ct. upwards.
For a ruby to be an asset to a portfolio, it must have a natural color and be untreated. That means it should not have been burnt / heated, nor should it be filled with lead glass, oil or similar. These methods are only used for visual "embellishment", but always reduce the value of the gem. Finally, we recommend buying smaller, untreated rubies in a natural color instead of large, treated rubies.
Many thanks to Thomas Schröck (Managing Director of The Natural Gem GmbH) for providing us with content and photo material.
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