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What affects the value of a Natural Gem?
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What affects the value of a Natural Gem? What affects the value of a Natural Gemstone?
There are several factors that can cause the price of Natural Gems to fluctuate. The following are some of them:
1. Gem variety
2. Color
3. Clarity
4. Carat weight
5. Cut & Shapes
6. Treatment
7. Origin
8. Supply v.s Demand
Click the arrow in this slideshow for further explanation on how these factor may affect the value of a Natural Gem. originaldate 1/1/0001 6:00:00 AM height 1066 width 1600 orientation 1 camerasoftware Adobe Photoshop CS5. 1. Gem variety Some well known gemstone varieties would demand a higher price than others. Examples include ruby, sapphire, emerald, diamond, tanzanite, spinel and alexandrite. However, it should be noted that although the gem variety sets a general price range for a stone, the unique characteristics of each gem would greatly affect the price. Some of these factors are described in the following slides. originaldate 1/1/0001 6:00:00 AM width 1600 height 1066 2. Color The color of a Natural Gem is one of the most important value factor. Different gem varieties have their own ideal color but as a general rule, gems that are intense, vivid and with a medium tone usually are more expensive. You may hear terms like "pigeon's blood red Ruby" or "cornflower blue Sapphire"; these two color expressions represent some of the finer quality rubies & sapphires. originaldate 1/1/0001 6:00:00 AM width 1600 height 1066 3. Clarity Clarity refers to the relative degree to which a transparent gemstone is free of internal or surface characteristics. Internal characteristics are commonly referred to as "inclusions" and external characteristics are commonly referred to as "blemishes". Some Natural Gems, such as Emerald, always has inclusions. A perfectly clean Natural Gemstone are priced at a higher value. originaldate 1/1/0001 6:00:00 AM width 1600 height 1066 4. Carat weight Gemstones are measured in "carat" and one carat is equivalent to 200 milligrams. For some gemstones, the value increases constantly with the weight. However for rarer gems, such as diamonds, rubies and sapphires, the price per carat can increase exponentially as the carat size increases. This means that if a 1 carat gemstone caused $500, a 2 carat gemstone could be priced at $2000. originaldate 1/1/0001 6:00:00 AM width 1600 height 1066 5. Cut & Shapes The cut refers to how well the proportions, symmetry and polish are executed to produce a particular gem shape. The cut is important because it affects the gems' color. Well-cut stones bring out the beauty and brilliance more, thus increasing the overall gemstone grade.
Some shapes also tend to be priced higher than others such as gemstones that are "round". originaldate 1/1/0001 6:00:00 AM width 1600 height 1066 6. Treatment Treatments are used to improve the appearance of a Natural Gemstone. A treated gem is always less expensive than an untreated gem of equivalent color and clarity. Some of the common treatments that are being used today include heating, fracture-filling, irradiation and diffusion. When you buy an expensive gemstone, make sure to verify from a reliable lab if any treatments were used . originaldate 1/1/0001 6:00:00 AM width 1600 height 1066 7. Origin Sometimes, where the gemstones come from can greatly affect the price. Some may wonder how is that possible. The reality of the market is that certain gem varieties from locations such as Burma, Sri Lanka, Kashmir, Colombia and Brazil are valued at a higher price. Therefore you may hear terms such as "Burmese Ruby", "Sri-Lankan Sapphire" or "Colombian Emerald"; these usually are more expensive. originaldate 1/1/0001 6:00:00 AM width 1600 height 1066 8. Supply v.s Demand Similar to other commodities, the economics of the gem industry is the same. The price of a Natural Gem would be affected by both its supply and demand. When demand exceeds supply, the value would increase. While, if the demand of a gem is lower than the supply, the price tends to fall. However, if the supply is unreliable and irregular, then prices and demand are unpredictable as well. originaldate 1/1/0001 6:00:00 AM width 1600 height 1066
