Smart Investors Add Precious Gemstones to Their Portfolio

QUEENSLAND, AUSTRALIA, March 15, 2011 (Press-News.org) Investors are now informing themselves to the rarity of opals and gemstones to add to their investment portfolios. Many investors are dismayed with shares and financial advisers and now turning to precious opals and gemstones.

Opalauctions which specializes in opals has had opal records sales in the lead up to Christmas.

The start of 2011 has seen many top quality opals sold in the $20,000 to $35,000 price points and many astute buyers buying $300 to $1000 opals. The most popular sold are black opals, boulder opals and Ethiopian opals.

GemRockAuctions which specializes in gemstones has seen a good demand for certified gemstones in the $200 to $1,000 price point. Unenhanced rubies are a good value to have in a portfolio. It is recommended that buyers become informed about treatments before purchasing, as natural untreated gemstones are ideal for a portfolio.

Wayne Sedawie, the owner of the auction network, says: ''Buyers are looking for quality opals and gemstones as investment or as an heirloom."

Mr. Sedawie has seen a rise in the demand for rare gemstones such as pink diamonds, and rare harlequin patterns in opal.
The rise in the demand commenced before Christmas, in conjunction to the steady demand for Perth mint silver coins on his coin-auction site Coins-auctioned.com.

Wayne has observed the boost of sales in the coins site with the silver coin Australian treasure series. The silver coin series comprised of a 1 ounce silver coin locket and enclosed within the coin are either sapphires, diamonds, opals or gold. These series are sold out by the Perth Mint within 7 days.

Reports state Warren Buffet returned over 60% on his investment in 2010 whilst most investors are lucky to get a 5% return on managed investments.

Warren Buffet, also known as the oracle of Omaha is considered the greatest investor of all time. What many people do not know is that Buffet bought silver from 1997 to 2006 accumulating over 37% of the world's known silver supply.

He has since subsequently sold at prices ranging around $7.50. Even back then he felt he sold out early reporting at a 2006 Berkshire Hathaway meeting. He said: ''I bought early and sold early. Silver was my fault. Speculation is wildest at the end.''

However since 2006 much has changed with paper/fiat currency no longer seen as trustworthy and precious commodities are now taking back their age old role of preferred currencies.

This is not a transitory change, precious metals have been currencies for thousands of years. What was strange was that people actually trusted governments and central banks with promises of IOUs. Even the great JP Morgan said that gold is cash, everything else is credit.

Silver coins increased over 60% last year and rare pattern black opals have a reputation of increasing 20% to 30% over last 20 years.

Opals and gemstones are considered by those in the industry harder and more expensive to mine worldwide. Rare gems are getting harder to find than in the past.

Today we have so many government bodies from mining department to environment and safety aspects, which even 10 years ago didn't exist and this makes mining far more expensive and an increase fuel prices are expensive, as D8 caterpillar bulldozer can go through a few thousand dollars a week in fuel plus spare parts all making it more expensive to find a gem.

The supply and demand has already affected prices with quality items selling quickly. So now is the time to add rare gemstones, opals and silver to your portfolio.

Websites
Gemstones: www.gemrockauctions.com
Coins: www.coins-auctioned.com
Opals: www.opalauctions.com