Pricing Faceted Gems and Calculating Your Return
Properly pricing faceted gems can be a daunting task for investors. Learn how to research gem prices and calculate your return on investment (ROI), too.
3 Minute Read
What Determines Faceted Gem Prices?
A faceted gem's sale price depends on several factors. Of course, quality is one of the most important factors. Subtle variations in quality can make a substantial difference in price, especially for high-end gems. Buyers and sellers will often disagree on the quality of a given gemstone. Ultimately, the price of a gem is what one willing buyer and one willing seller can actually agree upon.
No matter your place in the supply chain, you'll start pricing faceted gems by examining their cut, clarity, and color. However, despite established grading systems, these evaluations are inherently subjective, so the prices derived from those evaluations are also subjective. Each market participant can perceive the cut, clarity, and color of a given gem differently.
Do You Need Appraisals for Pricing Faceted Gems?
If you're not familiar with all the subtle nuances of color, cut, and clarity, your evaluation of a gem's quality will be very limited. In this case, you should consider getting an appraisal. However, keep these two caveats in mind:
- Few people have the experience to conduct appraisals, and that includes most jewelers.
- Currently, there are no laws or regulations regarding gem
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