Rare, natural gems are sparkling find for investors

SINGAPORE — Rare, natural and unheated gemstones — including rubies, emeralds and sapphires — are increasingly appealing to investors seeking to diversify their portfolios, jewellers here told TODAY.

With younger buyers driving growth, jewellers are re-tuning their business strategies to widen their range of offerings, adding more affordable and simple designs that are popular with young millennials.

Over 500 pieces of specially commissioned, limited edition jewellery will be showcased at the Singapore International Jewellery Expo this year, which kicks off today and runs over four days until Sunday.

Some 200 exhibitors from 25 countries will bring together pieces of jewellery worth more than US$150 million (S$208 million).

International experts will be on hand to advise on investment pieces.

“In terms of design trends, the focus is on creating limited edition, classic and simple pieces which are more appealing to the younger generation,” said Mr Fabio Cascapera owner and managing director of home-grown jeweller Famosi Singapore.

“Amid the volatility in the gold market, demand for diamonds and rare gemstones is gathering further momentum.”

Mr Cascapera is also the author of Investire In Diamanti, an analysis on diamond investment.

Fine jewellery — made with precious materials — accounted for 87 per cent of total jewellery sales last year, according to data from Euromonitor International.

Asia-Pacific is a key growth region for the jewellery industry, registering the fastest regional growth rate at 10 per cent.

While China and India account for a large proportion of the demand for jewellery, emerging markets — in particular within South-east Asia — are key growth markets, the report noted.

“All precious gemstones now come with international certification,” said Ms Ivy Choa, founder of Ivy Masterpiece, adding that this gives more confidence to buyers.

Increasingly, people are going online to find more information, said Ms Choa, who specialises in bespoke jewellery designs with fine natural gemstones. “With one push of a button, the younger people manage to find any information they need.

“We see a steady surge in demand for coloured gemstones and diamonds among millennials.”

Traditionally, affluent business and professional women made up the majority of her client base but this is slowly changing.

“Now, even men are increasingly looking at natural and untreated coloured gemstones besides diamonds as alternative investment options,” said Ms Choa. “The demand surge is also obvious given that mines are depleting. Prices have gone up multifold over the past years.”

For instance, in export-oriented nations like Myanmar and Sri Lanka, people have started buying gemstones mined in their own countries.

According to Ms Choa, prices of rubies have increased five-fold over the past five years.

Ms Simone Ng, jewellery designer and gemologist at Simone Jewels, also noted that over the years, young people have become more “appreciative” of jewellery, especially diamonds and coloured stones.

Increasingly, there is a growing trend for people to use jewellery as accessories to “enhance their persona”, she said. Given their value, such investments have “no depreciation” and are wearable to boot.

More than 15,000 visitors are expected to attend the four-day exhibition at the Marina Bay Sands Singapore Expo and Convention Centre.

Special exhibits include rare jewellery pieces by De Gem including a 51-carat yellow diamond, a 20-carat oval diamond ring and a 10-carat Burmese pigeon blood ruby.