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In times of uncertainty and/or national crisis there is one correlation between precious metals and diamond and colored gemstone prices. As gold increase, so did tangible assets. The answer to this anomaly could be that gold is also regarded as a “safe haven” or crisis hedge.
People fear that their assets may be seized and that the currency may become worthless. They see gold as a solid asset which will always buy food or transportation. Thus, in times of great uncertainty, the demand for gold rises.

However a certain smaller percentage of people are also buying gemstones as a hedge. Collecting fine gems is a relatively new phenomenon in the USA. However, throughout history, examples abound of instances where gems have saved people in times of political and economic crises. Some notable examples are Nazi Germany, Vietnam, Iran, and Hong Kong.

Political instability, high taxation and currency devaluation, have meant that many people in parts of Asia, South America and even Europe, have long been aware of the significant role that gemstones play in conserving capital. Fine quality diamonds and colored stones have long shown themselves to be excellent long-term hedges against economic uncertainty and currency depreciation.

Rare, fine gemstones represent an excellent and highly portable repository of value. Certainly, this concept seems to be bearing itself out in the market – international collectors and investors have pushed colored diamonds and colored gemstones to record highs at each major auction since the recession in 2009.

In view of the state of affairs and uncertainty of our times, it seems wise to research other areas in which to invest capital. Most financial advisors will suggest that a percentage of one’s portfolio be in hard assets, you could do worse than consider colored gemstones.