Durability and Longevity
One of the most compelling aspects of sapphires as an investment is their durability and longevity. Rated 9 on the Mohs scale of mineral hardness, sapphires are second only to diamonds in terms of hardness. This exceptional hardness ensures that sapphires are highly resistant to scratching and chipping, making them ideal for everyday wear in jewelry.
Moreover, sapphires are exceptionally stable chemically, meaning they do not degrade or deteriorate over time. Unlike other investments that may require maintenance or regular attention, sapphires can be stored and preserved with minimal effort. This longevity ensures that sapphires can be passed down through generations, potentially increasing in value as they acquire historical significance.
The Emotional Appeal of Sapphires
Investing in sapphires goes beyond financial returns; it taps into the emotional and cultural significance that these gemstones hold. Throughout history, sapphires have been associated with romance, wisdom, and nobility. Owning a sapphire, whether as a piece of jewelry or an investment asset, carries with it a sense of connection to the past and a link to enduring traditions.
The emotional appeal of sapphires is not to be underestimated, as it can enhance the investment experience. Unlike purely financial assets, sapphires provide a tangible and aesthetic connection to the past, making them both a valuable investment and a source of personal enjoyment.
Diversification and Portfolio Hedging
From a financial perspective, sapphires offer diversification benefits to an investment portfolio. Diversification, or spreading investments across different asset classes, is a strategy used to reduce risk. Adding tangible assets like sapphires to a portfolio of stocks and bonds can provide a hedge against economic volatility, inflation, and political instability.
Historically, when traditional financial markets have faced downturns, alternative investments like precious gemstones have held their value or even appreciated. This diversification can help investors mitigate risk and protect their wealth during turbulent economic times.
Legal and Ethical Considerations
Investors today are increasingly concerned about the ethical and legal aspects of their investments. With sapphires, the transparency of their supply chain and the gemstone’s origins can be tracked and verified, reducing the risk of investing in conflict or unethical practices.
Moreover, investing in sapphires can contribute to the economies of countries where these gemstones are mined. Ethical sourcing practices can support local communities and help improve the livelihoods of miners and their families, aligning with responsible investment principles.
By traveling to the mines directly, cutting, and polishing them in-house, we try to ensure this aspect of a sapphire’s journey.
From their historical significance to their impressive market performance and enduring appeal, sapphires make a compelling case as an investment choice. As tangible assets, sapphires offer diversification benefits, emotional value, and the potential for long-term growth. Their rarity and scarcity, coupled with their durability and timeless beauty, make them an attractive option for investors seeking to preserve and grow their wealth.
While sapphires may not be the primary investment vehicle for everyone, they certainly have a place in a well-rounded investment portfolio, adding a touch of history, culture, and allure to the world of finance. In the grand tapestry of investment opportunities, sapphires shine brightly as a gem worth considering.
[Alexander Kreis inspecting a yellow sapphire rough stone – Picture by KREIS]
[Holding a gemstone torch to a rough yellow sapphire to check for inclusions – Picture be KREIS]
[A finished yellow sapphire in the KREIS-Cut – Picture by KREIS]