Cleave

AAA

DEFINITION of 'Cleave'

The occurrence of a gemstone breaking into two or more pieces during the cutting or polishing process. Naturally occurring impurities in the stones increase the likelihood that a stone will break apart.

INVESTOPEDIA EXPLAINS 'Cleave'

Gemstones - especially large ones - are very rare. When large gemstones are found, they are usually sold to investors who pay to have the stones cut and polished. A large gemstone that is successfully cut and polished is many times more valuable than an unpolished stone of similar size. However, gemstone investments include the substantial risk that a stone will cleave during the cutting or polishing process, causing a substantial decrease in its value.

RELATED TERMS
  1. Four Cs

    The four characteristics used to determine the value of a diamond. ...
  2. Alternative Asset

    Any non-traditional asset with potential economic value that ...
  3. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  4. Comparables

    A valuation technique in which a recently sold asset is used ...
  5. Diamonds

    1. An extremely hard gemstone used mainly for jewelry, tools ...
  6. Gemology

    The combined art and science of studying, cutting, valuing, buying ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Options & Futures

    Introduction To Gemology

    Gemology as an investment alternative may seem glamorous, but it's not for the faint of heart.
  2. Investing

    Using Technical Analysis In The Gold Markets

    The quest for this shiny commodity has made millionaires of paupers and, on the flip side, ruined many an investor.
  3. Options & Futures

    20 Investments You Should Know

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  4. Options & Futures

    The Fancy Way To Diversify Your Portfolio: Precious Metal Options

    A guide with strategies on how to invest or trade in precious metals by using options.
  5. Trading Strategies

    How To Arbitrage Precious Metals

    Here are the fine points, trading tips, suitable securities, and examples for precious metal arbitrage trading.
  6. Chart Advisor

    Use These Two ETFs To Profit From A Reversal In Gold

    Traders recently have been setting their sights on gold. Buying the metal would have translated into a nearly 10% in only a few short weeks, while investing in mining-related stocks could have ...
  7. Chart Advisor

    Commodities Set Up For A Continued Move Lower

    Commodities have been suffering since late summer, and unfortunately for the bulls it doesn’t appear that the situation is about to change anytime soon.
  8. Chart Advisor

    Gold's Next Move Is Lower

    Bearish traders have started shorting gold now that is has fallen below $1,180. Where does gold go from here?
  9. Chart Advisor

    Falling Prices Are Dragging These Gold Stocks Down

    There have been few commodities that have escaped the wrath of downward momentum over the past several months. Gold has been no exception.
  10. Investing News

    The Better Inflation Hedge: Gold or Treasuries?

    Owning gold may not be the best option for hedging against inflation. What else, then? Try treasuries or gold ETFs.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center