Investing in gemstones: Ukraine's experience through the prism of global trends

On the global jewelry market, a so-called "great rotation" is underway: interest and capital are shifting from classic colorless diamonds to unique colored stones with confirmed rare origins. It is rarity, color, clarity, size, and the presence of a reliable certificate that most influence the price of gemstones today. UNN investigated whether Ukrainians can become full-fledged players in the gemstone investment market.

World: where money is "pulled"

In the world of jewelry, rules are dictated not by exchanges, but by large auctions. The most popular are Sotheby's and Christie's, which are essentially "Wall Street" for rubies, sapphires, and diamonds. 

An analysis of the market over the past two years has shown that money is concentrated at the top of the pyramid – in 1% of stones, so rare that they almost fall outside the scope of statistics. Unique colors, large sizes, the absence of any human intervention in processing, and certificates from the most respected laboratories – this is the formula that separates the prices of "trophy" stones from the average market. Natalia Vovk, gemologist, expert in the identification and evaluation of gemstones, graduate of the Gemological Institute of America GIA (Carlsbad, USA) and the Gemological Center of Ukraine, told UNN in an exclusive comment.

First of all, the value of gemstones is influenced by: rarity, the more unique the stone, the higher the price, and uniqueness is influenced by the size in its category, that is, the larger the stone, the more the price can increase, not arithmetically, but geometrically; then comes such an important factor as the presence of enhancement, that is, how much a person has interfered with the quality (color and clarity), stones without enhancement (natural color) are highly valued, as is generally the case with everything natural

She also emphasized the importance of stone certification; without it, buying gemstones is like marrying blind: many risks, no guarantees. Financial expert Olena Sosedka agrees with this, who, in her author's column on investing in gemstones, advised Ukrainians to meticulously study the rules of the game in the gemstone investment market and only then invest money there.

Investing in gemstones can be a beautiful adventure, but even the brightest sapphire will not replace common sense and a meticulous approach. Before starting the game, it is worth learning its rules, understanding the risks, and not succumbing to the temptation of glitter. Because in a world where every stone has its own story, those who read it carefully win. And then, instead of disappointment, you will get an asset that provides both financial stability and aesthetic pleasure.

The facts only underscore this trend. Auctions in recent months have become a kind of "value barometers." At Sotheby's, a 10-carat "Fancy Vivid Blue" diamond went under the hammer for $21.5 million. At Christie's, the "Marie-Thérèse Pink" pink diamond weighing 10.38 carats cost the buyer $14 million. A Burmese "Pigeon's blood" ruby of 8.01 carats showed a result of $6.4 million, and a Paraiba tourmaline from Mozambique weighing 7.46 carats – over $2 million. Alexandrite also had its say: a Brazilian stone of 16.53 carats set a new bar for the category, reaching $1.9 million.

Ukraine: low liquidity and special orders

While global prices for jewelry are formed by large auctions and global demand, the situation in Ukraine is different. The domestic market for secondary sales of gemstones is almost non-existent, and the key channels remain consignment showcases and pawnshop networks, where their value is far from market value. This is why the liquidity of stones in the Ukrainian domestic market is minimal.

In Ukraine, there is a special, not entirely typical for most countries, type of sale through a system of buyouts or pawnshops. But the pawnshop price for collateralized property, such as gemstones, differs very, very much from the commercial price. If you go, for example, to any pawnshop chain, even diamonds accepted as collateral are valued very, very cheaply, literally at the level of a few hryvnias. Although the value of such a jewelry insert, the market value, is much, much higher.

Differences are also visible in consumer tastes. If for Americans prestige is a large diamond in the center of a piece of jewelry, in Ukraine the main role is often played by design and artistic idea.

In the USA, the prestige of a product is a large, high-quality diamond... There, diamonds over a carat are a must-have for engagements. Here, we can have rings with a small diamond or a track of small stones. The main thing is that the product looks delicate and gentle. In America, there must be... a "boulder"

This gap between global standards and Ukrainian realities is also emphasized by jewelers.

If we are talking about gemstones – it is difficult to call it a good investment in Ukraine... both stones and products are not an investment in the classical sense. If we are talking about profit, it is more profitable to buy gold in bars. In Ukraine, it is extremely difficult to sell gemstones, even if there are all certificates – there is practically no secondary market.

Conclusions

So, if the global market is moving towards "trophy" stones and showing stable growth, in Ukraine only one strategy works for now: playing by international rules – buying and selling through global platforms, choosing only certified and rare items, and being ready to wait for years. Everything else here is more about emotions than about investments.