Are Ruby Gemstones Worth Investing In?

Rubies have captivated humanity for centuries with their beautiful red hue and mystical allure. As one of the world's most precious gemstones, rubies also offer investors the potential for strong returns over time. But are ruby gemstones really worth investing in?

How valuable is Ruby in today's gemstone market?

A ruby's value is dependent on several factors that determine its overall quality and rarity. The most important factors are the ruby's size, color saturation, clarity, geographic origin, and whether it has been treated.

Larger rubies are exponentially more valuable per carat than smaller stones. The most prized rubies exhibit a highly saturated, pure red to slightly purplish red color. They also have few inclusions and high clarity. The origin or source mine of the ruby also significantly impacts value--Burmese rubies from Myanmar (Burma) fetch the highest prices around the world. Finally, untreated natural rubies free of any enhancements are the most precious and investment-worthy.

Factors impacting the Value of a Ruby

A ruby's value is dependent on several key factors that determine its desirability and price point:

• Carat Size - Bigger is better when it comes to ruby carat weight. Prices scale exponentially with carat size. A 5 carat ruby can be worth 5-10x per carat compared to a 1 carat stone of similar quality.
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• Geographic Origin - The most valuable rubies come from Myanmar (Burma), especially the Mogok valley which produces rare "pigeon's blood" rubies with a saturated red color. Burmese rubies fetch substantial premiums. Other key sources are Thailand, Sri Lanka, Mozambique, and Tajikistan.
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• Color - Vivid red color saturation intensely impacts value. The most desirable hue ranges from a highly saturated pure red to slightly purplish red. Purple undertones denote Burmese origin.
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• Treatments - Completely untreated natural rubies are most ideal for value appreciation. Heat treatment is common but reduces value. Other treatments like fracture-filling with glass or diffusion treatment substantially lower the value.
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• Clarity - Eye-clean rubies with few inclusions are ideal. Flawless rubies with perfect clarity will be exceptionally expensive and rare in larger sizes. Minor inclusions are often acceptable if not visible face up.
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Understanding the Value of Natural Ruby

As a rare gemstone even more coveted than diamonds, natural rubies have inherent value and, like gold, can be an excellent inflation-proof, tangible asset. Annual price appreciation for high-quality rubies has consistently outpaced inflation for decades. Over the past 25 years, natural ruby prices have averaged price increases around 5-7 percent annually higher than blue-chip stocks.

Especially rare pigeon blood rubies from legendary Burmese mines like Mogok can sell for over $1 million per carat at auction when exhibiting a finely saturated, pure red color. These ultra-rare imperial Burmese rubies have achieved some of the largest per carat prices among all gemstones in recent years thanks to new demand from Chinese collectors. They are truly in a league of their own.

Exploring the differences between Burmese vs Mozambique rubies

By contrast, rubies from Mozambique which were discovered in significant quantities in 2009 tend to trade at discounts of 30 percent or more compared to comparable quality Burmese rubies. While considerably more affordable, Mozambique ruby prices have softened since their peak around 2014 when supply surged. From an investment perspective, Mozambique rubies carry higher downside risks long-term.

Why should you consider Rubies as an investment?

While treated and synthetic rubies have flooded the low-end market, no treatments can permanently alter inferior rubies to achieve the red fluorescence brilliance and financial upside of untreated gems sourced from legendary mines like Mogok. When buying rubies to hold as investments, it pays to stick with certified, unenhanced natural stones, ideally Burmese in origin.

While too costly for mainstream investors, portfolios holding a few high caliber Burmese rubies stand to see significant asset appreciation given their unparalleled cachet among the ultra-wealthy. Both strong capital appreciation upside and scarcity make fine ruby gems extremely attractive additions for more diversified gem investment portfolios. Just be sure to work with a reputable dealer that provides independent lab certification from GIA or AGL.

While lower-end rubies carry too much risk as investments, untreated gems with the finest color from legendary Burmese sources have proven to be a top-performing asset class that can also be enjoyed for their timeless beauty. For investors open to holding extremely rare collectibles, ruby gems remain a smart diversifier.

COMTEX_453234081/2891/2024-06-02T05:15:02

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