The colorful world of precious gemstones

What are gemstones?

Precious stones (also: “gemstones”) are naturally occurring minerals that are valued for their rarity, beauty, hardness and value. The fascinating minerals are formed deep below the earth's surface when magma cools and crystals form. Many gemstones are produced at depths of five to 40 kilometers under strong pressure and heat. Diamonds are stored even deeper: 150 to 250 kilometers below the Earth's surface in the Earth's mantle. The presence of certain metals (aluminum, chrome, iron...) is responsible for the beautiful, intense colors of the gemstones, which reach the surface as a result of underground movements.

Although an exact, scientific definition of gemstones is hardly possible, classification characteristics such as hardness, translucency, purity and color are generally used. The hardness of all gemstones is determined with the help of Mohs Hardness Scale specified. This scale shows how resistant a particular mineral is to scratch, break and last. It is divided into ten different degrees of hardness, with diamonds ranking ten at the highest level.

Since there are virtually no guidelines for the jewelry industry from the International Organization for Standardization (ISO), the so-called CIBJO's “Blue Books” the most widely accepted collection of globally accepted standards. This includes relevant evaluation criteria and nomenclatures for diamonds, colored gemstones, pearls, corals, precious metals and gemological laboratories. They are compiled and constantly updated. The relevant CIBJO commissions, which include representatives from trade organizations and laboratories active in the areas of diamonds, coloured gemstones, pearls, precious metals and jewellery, are involved.

Good to know: The The term semi-precious stone is out of date. He described a gemstone that is characterized by its beauty, but in contrast to the “real” gemstones, is much more common in nature, is usually also less hard and therefore less valuable.

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Fascination since the Stone Age

The formation of precious stones began around three billion years ago as a result of processes in the Earth's interior. Since then, they have come an incredible journey and have been inspiring people since the Stone Age. Archaeological findings made in the Cueva de los Aviones cave (southeastern Spain) prove that Neanderthals had already experimented with red gemstones (hematites). However, they were probably only used for cave painting due to their red coloring.

In ancient times, various cultures, including the Romans, Greeks, Persians, Indians and Chinese, used the colorful stones as jewelry. They believed that gemstones had magical powers and could provide protection against disease and disaster.

Thanks in particular to the Egyptians, craft techniques developed very early on, which are still used today. This includes: engraving, chiseling, driving, gilding and silvering. In Greece, too, artistic pieces of jewelry were made with precious stones, which were initially only used as grave goods.

Since the Middle Ages, sparkling jewels have primarily been a status symbol and were appreciated by kings and nobles (“Crown Jewels”), traded and further refined. Even in the Middle Ages, people believed in the magical powers of gemstones - a cult that continues to this day.

The Benedictine Hildegard of Bingen For example, precious stones were of great importance and used them as healing stones for external therapeutic purposes. She saw the reason for the healing power of gemstones in the construction of their crystalline structure, which vibrates at a specific rhythm. This would produce radiation that is similar to that of human energy flows. However, the healing power of stones has not been scientifically proven. At best, medically used gemstones achieved a “Placebo effect” with the patient.

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The top 4 most valuable gemstones

However, it is safe to say that diamonds, sapphires, emeralds and other precious stones are expensive and sought after jewelry and collectibles due to their beauty and rarity value.

These top 5 gemstones are particularly noteworthy:

• diamond

By far the most famous and hardest gemstone is diamond, whose value is measured according to the quality criteria “Carat”, “Cut”, “Clarity” and “Color” — the so-called “4Cs”. Diamonds are often used in engagement rings and other jewelry. Their value can vary significantly depending on quality and origin. This makes it possible to buy a 1-carat diamond for less than 1000 euros. Especially high-quality “Fancy Diamonds” However, they can also cost six to seven-figure amounts.

• sapphire

Sapphires are precious stones that - like rubies - consist of the mineral corundum. The characteristic “sapphire blue” is made from a combination of iron and titanium. When corundum is combined with other metals, sapphires can also have other colors. However, the color “cornflower blue” and the color combination “paparaja” (a mix of orange and pink) make the hearts of gemstone collectors and investors beat the highest.

• ruby

Ruby is also corundum, which gets its color when it comes into contact with chromium oxide. Strong red rubies with a slightly bluish tinge are among the most valuable. Stones in this color variant are known as dove blood rubies, are highly sought after by investors and often cost a five-digit sum per carat.

• emerald

Emeralds are green gemstones that belong to the beryl family. Emeralds from Brazil are particularly valuable, which, due to their strong green, sometimes fetch higher prices than comparable diamonds. By the way, there are also emerald deposits in Austria (Habachtal). Some of these emeralds are even part of the British Crown Jewels repertoire.
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Gems: a “hard” currency

Due to their low correlation to other asset classes and their “intrinsic” value, precious stones are also an attractive portfolio addition for investors. Diamonds in particular are very popular thanks to increasing demand from Asia combined with a simultaneous natural scarcity. However, since investors should have a great deal of expertise before buying expensive gemstones, diamonds can sometimes cost six to seven-figure sums, and the question of secure storage must be resolved, digital shares are recommended for beginners. As a result, you benefit from potential increases in value just like an owner and remain flexible because Diamond shares starting at just 500 euros are tradable on the secondary market.

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