If you are a Tintin fan, you know of singer Bianca Castafiore and her love for trinkets. Now they are a reality. A report shows that coloured gemstones outperform traditional choices in the jewellery market. By Team Viva
It is time to invest in and own coloured gemstones compared to traditional gold and platinum, if a latest lifestyle study is to be believed. And around seven per cent of Indian UHNWIs (ultra high net worth individuals) are collecting coloured diamonds as a passion-led investment. India already has a well-established wedding jewellery tradition that celebrates stones embedded in gold and silver, so the traction here is but expected.
Thanks to transparent valuation standards, the establishment of institutional gemology labs and active market transactions, gemstones have come of age. Knight Frank, a global property consultancy, launched its luxury investment index (KFLII), which cited that in coloured gemstones, a 17.43 carat Kashmir sapphire ring was the top performer at Bonhams’ London sale at the end of April. Formerly owned by a European noble family, this Kashmir sapphire ring fetched £7,23,063, far exceeding its £3,00,000 to £4,00,000 guide price.
The report focussed on the increasing value of coloured gemstones, seen to be out-performing the wider jewellery market and, therefore, increasingly popular with investors and collectors worldwide. The index series provides data on investments of passion, such as whisky, cars, jewellery and others, tracking each over time.
Experts say that consumers are preferring high-quality gemstones which are rare and unique in designs. Shishir Baijal, chairman and managing director, Knight Frank India, said, “More than 100 per cent incremental value of the gemstones and jewellery over a decade have made them lucrative asset investment classes, than just purchasing it for its aesthetic value. Indian UHNWIs are increasingly making passion-led investments in gems and jewellery. Much of the rising popularity of coloured gemstones is due to growing awareness and developments that have boosted consumer confidence, such as widespread certification, more industry transparency and gemological analysis.”
Talking about how coloured gemstones are outperforming the wider jewellery market and therefore increasingly getting popular among investors, Milind Mathur, partner, Kohinoor Jewellers, Agra, said, “Precious coloured gemstones are gaining prominence in the market of late owing to their everlasting charm and emerging trends among the customers. The market for coloured gemstones has flourished notably owing to their increasing demand. Their rarity and undeniable allure are what makes them truly stand out. It is the colour, cut, clarity and carat that play a pivotal role in deciding their value and making them desirable. On the other hand, we have witnessed royals adorning coloured gemstones in the recent past and I think that has also influenced the buying pattern of the customers.”
Varda Goenka of Fine Jewels by DIAGOLD has observed a spike in demand for natural gemstones like rubies, emeralds, blue and yellow sapphires. Blue sapphire and emerald are considered top quality and are seen as highly desirable acquisitions. Besides, such stones in India have an auspicious aspect, which makes for a value-added choice.”
Andrew Shirley, Head of Luxury Research at Knight Frank, said, “The interesting story here is that coloured gemstones are outperforming the wider jewellery market with some significant sales taking place already in 2019.”
Jean Ghika, global head of jewellery at Bonhams, cited, “The rarity factor is an undeniable pull,” she says. “Potential buyers are looking to expand their collections beyond colourless diamonds. They’re keen to seek out the very best examples of highly desirable and rare specimens, whether that be Kashmir sapphires, Burma rubies or no-oil emeralds, the likes of which they may never find again.”